Former FTX CEO and co-founder Sam Bankman-Fried was sentenced to 25 years in jail on Thursday in a extremely publicized criminal fraud case.
This is a glance again on the downfall of FTX and Bankman-Fried and the way a lot you would have made shopping for Bitcoin (CRYPTO: BTC) when the cryptocurrency character was arrested and the sector was falling.
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What Occurred: Bankman-Fried was found guilty on seven counts of legal fraud in November 2023 and confronted as much as 110 years in jail.
Bankman-Fried will now spend 25 years in jail for his position within the collapse of FTX and the misuse of buyer funds.
At its peak, FTX was one of many main cryptocurrency platforms, utilized by customers to purchase and promote cryptocurrencies. It was later alleged that the corporate had misused buyer funds and the valuation of the corporate’s FTX Token (CRYPTO: FTT) noticed an enormous drop after an article exhibiting the corporate’s steadiness sheet and the sale of the token by rival Binance.
In November 2022, FTX declared bankruptcy, which got here lower than a yr after the corporate was valued at $32 billion.
Bankman-Fried saw his wealth dramatically fall from $15.6 billion to $1 billion on the time, dropping 94% of his wealth in someday in one of many largest drops in historical past. Bankman-Fried, who was value $26 billion at his peak, was later valued at $0 by the Bloomberg Billionaires Index.
The previous FTX CEO was arrested on Dec. 12, 2022 within the Bahamas after legal fees have been introduced towards him by the U.S.
The worth of Bitcoin was highly volatile throughout the FTX occasions, with drops occurring after the chapter of FTX and after Bankman-Fried was discovered responsible of fraud. Those that invested at key moments of panic have loved sizable returns on their investments.
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Investing $1,000 in Bitcoin: The worth of Bitcoin had a earlier all-time excessive of practically $69,000 in 2021 and was among the many main cryptocurrencies for the yr.
In 2022, cryptocurrency continued to draw vital consideration from traders and customers, till the chapter of a number of crypto firms triggered a pointy decline within the costs of cryptocurrencies, together with Bitcoin.
On Dec. 12, 2022, when Bankman-Fried was arrested, Bitcoin traded at an intraday excessive of $17,212.56. An investor who purchased $1,000 of Bitcoin when the previous FTX was arrested might have bought 0.0581 BTC.
The $1,000 funding could be value $4,114.17 as we speak primarily based on a value of $70,811.96 for Bitcoin on the time of writing.
This represents a hypothetical return of 311.4% over the past yr since Bankman-Fried’s arrest.
The sentencing of Bankman-Fried might put to an finish one of the adverse moments for the cryptocurrency sector in recent times.
Bitcoin hit an all-time high in March 2024 of $73,750.07 with the launch of Bitcoin ETFs and robust inflows resulting in optimistic sentiment for the apex cryptocurrency.
Historical past has proven that Bitcoin doesn’t commerce in a straight line and may be extremely unstable round occasions within the sector. Buyers who acknowledged a possible restoration within the value of Bitcoin after Bankman-Fried was arrested have been pleasantly rewarded.
This text was beforehand revealed by Benzinga and has been up to date.
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