US Senate stands against SBF

Two US senators approached the US Department of Justice in order to arrest FTX founder Sam Bankman-Fried

Exchanges & Wallets November 24
Kimberly Rodriguez Medina

'Justice' is a very broad word and also very abstract. Not all people have the same point of view about what justice is to impart, because not all of us see and analyze everything the same way. For this reason, sometimes we might think that justice is fair, unfair, soon or late, depending on what each one believes is appropriate. And according to the Senate of the United States, actions being taken are inappropriate and late.

Two senators, Elizabeth Warren and Sheldon Whitehouse, were in charge of writing a letter to the US Department of Justice. In it, justice is urged to arrest the founder and former CEO of FTX, Sam Bankman-Fried. In addition, a request that the weight of justice fall on "any complicit executive of FTX" was also made.

Among many things, the concern of these two senators for retail investors stands out. They stress that the impact of the collapse on them is "even more alarming" than the shock waves that were created throughout the industry. In addition, they point out that the cryptocurrency exchange created a false sense of security and legitimacy, and that it invited investors to put their money there through advertisements and sponsorship agreements with different celebrities, especially from the world of sports.

The eye of the prosecution by Warren and Whitehouse focuses on alleged intentional and fraudulent tactics that may have been carried out by Sam Bankman-Fried and other company executives. In addition, SBF is accused of having downplayed the lack of liquidity that caused the fall of its cryptocurrency exchange and the different companies that were part of its conglomerate.

Now, where does the fault of all this lie? The malpractice of those responsible for FTX and Alameda Research may have caused the fall of the exchange and the problems that have come in the form of a cascade. That is true, but this would leave cryptocurrencies out of the equation about the culprits. And the blame is usually generalized around these virtual assets, but the reality is that it has not been the fault of this technology, so many arguments that have been used to attack the industry are far from reality.

More information: 'The celebrity victims of FTX'

Related

Swyftx slashes workforce

The exchange commences an internal reorganization process after stating that it has “no exposure to FTX”, but it is not immune to the ensuing market crash.

Exchanges & Wallets
3’