Sam Bankman-Fried: A Call for Crypto Regulation on Exchanges

A prominent figure in the crypto space, the founder of FTX exchange has been finally sentenced to 25 years imprisonment according to legal proceedings after a long detention in MDC prison, New York. He was sentenced on the 28th of March, 2024.

However the significance of this sentence implies investors’ confidence on major exchanges may likely at be stake. The chances of an exchange following suit may likely occur if no proper regulation and penalty is carried out. This may result into development of strict regulations governing crypto currency at large.

On the part of Sam Bankman-Fried, his reputation no longer counts due to his inability to manage their finance wisely especially for those who lost their funds in the process.

Currently there is a debate between the prison custodians and the government of the United States which got me thinking something fishy may have happened before the collapse of FTX involving the founder and other partners of the crime. The prison custodians stated that such crime of such offence was liable for 155 years imprisonment. The government was suggesting a minimum of 40 to 50 years. Both parties later resolved it to 25 years with a payment of 11billion USD.

However the subject has followed with legal considerations as in section 3553 of the united state law. It states that “for sentencing consideration for federal crimes, the judge must consider the nature of offence which in this case is a financial crime, the circumstance surrounding the offence, characteristics and history of the individual, must be considered in order to provide a just punishment to the culprit involved”

**My Candid View **

Crime is crime, mismanaging people's money is a resolvable issue if he (Sam Bankman-fried) will be willing to refund those investors who lost their money in FTX saga. I see no reason for the 25 year imprisonment if he is willing to payback. But if he isn’t willing, the legal consideration for such offence should be of priority with more regulations on crypto. He can account for how the money was spent and hence individuals involved in the crime can also be fished out and brought to book.

Crypto exchanges should operate on a minimum amount of capital regulation. this capital should protect investors should incase of insolvency.

Market monitoring should be implemented on exchanges to checkout for activities of fraud or deliberate market manipulation.

Thanks for going through my blog, I wish you all the best of the day!

Posted Using InLeo Alpha