The market is “on its knees” but will “bounce back,” experts say
Even as Sam Bankman-Fried, the former CEO of collapsed crypto exchange FTX, was arrested earlier this week and denied bail, as questions surrounding the case – and what lies ahead – linger.
“Bankman-Fried’s arrest was both late and jumping,” Matthew Barhoma, founder of Barhoma Law and Power Trial Lawyers, told ExamPaper.
What we’ve seen may be just the beginning, Barhoma hinted, “Expect more charges against Bankman-Fried and others related to FTX.”
On Tuesday, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) all filed suit against Bankman-Fried for defrauding investors. He is also under investigation for other securities law violations, in addition to other ongoing investigations against others involved.
As the situation unfolds, Miles Fuller, head of Government Solutions for Taxbit, agrees with Barhoma that more costs will arise. “SBF’s arrest was not unexpected,” he said.
Damian Williams, the U.S. Attorney for the Southern District of New York, was asked at a Tuesday afternoon press conference whether the entities will press charges against other individuals allegedly involved in the FTX collapse, to which he replied, “I can only do this but say: It is clear that we are not done yet.”
“Of the eight charges in the indictment, five are conspiracy charges,” Fuller said. “A criminal conspiracy, by definition, requires more than one person, so we should anticipate that at least some other individuals will need to be identified and potentially charged as co-conspirators.”
There is a lot of speculation about the scope of the criminal action and who was involved in the FTX saga, according to Joby Carpenter, global head of crypto assets and illicit finance at ACAMS. “The U.S. Department of Justice’s unsealed indictment points to massive fraud, money laundering, and campaign finance violations in the U.S. There’s more to play, though,” he told ExamPaper.