Tech

Sam Bankman-Fried sentenced to 25 years in prison for FTX fraud

Published

10 months ago

11 June, 2024

Sam Bankman-Fried sentenced to 25 years in prison for FTX fraud

Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange that was convicted of stealing billions of dollars from customerswas sentenced to 25 years in prison Thursday, capping an extraordinary saga that has rocked the cryptocurrency industry and become a cautionary tale of greed and hubris.

Bankman-Fried’s sentence was less than the 40 to 50 years that federal prosecutors had sought after a jury found him guilty of fraud, conspiracy and money laundering — charges that carried a maximum sentence of 110 years behind bars . But the sentence was well in excess of the six and a half years requested by his defense lawyers.

Mr. Bankman-Fried, 32, did not visibly react when Judge Lewis A. Kaplan handed down the sentence in Federal District Court in Manhattan. His parents, law professors Joe Bankman and Barbara Fried, sat two rows in front, staring at the floor.

“He knew it was wrong. He knew it was a crime,” Judge Kaplan said of Mr. Bankman-Fried’s actions.

Before the sentence was handed down, Mr. Bankman-Fried, clean-shaven and wearing a loose-fitting brown prison uniform, apologized to FTX’s customers, investors and employees.

“A lot of people feel really disappointed, and they were very disappointed,” he said. “I am sorry. I am sorry for what happened at every stage.” He added that her decisions “haunt” him every day.

Mr. Bankman-Fried was also ordered to seize about $11 billion in assets.

During sentencing, Judge Kaplan referenced Bankman-Fried’s trial testimony showing the FTX founder’s extreme appetite for risk, saying it was in his “nature” to make colossally dangerous bets. “There is a risk that this man is in a position to do something very bad in the future,” he said.

Judge Kaplan too She said Mr Bankman-Fried had lied in the witness box and had not taken responsibility for his crimes. “He regrets having made a very wrong bet on the probability of being discovered,” he said. “But he won’t admit anything.”

Mr. Bankman-Fried, currently incarcerated at the Metropolitan Detention Center in Brooklyn, will be sent to a low- or medium-security prison, the judge said, most likely near his parents’ home in the San Francisco Bay Area.

The ruling marked the end of a sprawling fraud case that exposed rampant volatility and risk-taking in the loosely regulated world of cryptocurrencies. In November 2022, FTX imploded virtually overnight, wiping out $8 billion in customer savings. At a trial last fall, he was convicted of seven counts of fraud, conspiracy and money laundering.

His sentence is considered one of the longest given to a white-collar defendant in recent years. Bernie Madoffwho orchestrated a notorious Ponzi scheme exposed during the 2008 financial crisis, received a 150-year sentence in 2009. He was in his 70s and died 12 years later. Elizabeth Holmesconvicted of defrauding investors in her blood testing start-up, Theranos, was sentenced to 11 years and three months in 2022.

A representative for Mr. Bankman-Fried declined to comment. In a statement, his parents said: “We are heartbroken and will continue to fight for our son.”

Ira Lee Sorkin, the defense lawyer who represented Mr. Madoff, said he was not surprised that Mr. Bankman-Fried received a harsh sentence, even if shorter than that of his own client.

“He is 32 years old and will see the light,” he said of Mr. Bankman-Fried. “But you will spend a lot of time in cell.”

Just 18 months ago, Bankman-Fried was a corporate giant and one of the youngest billionaires on the planet. With his face plastered on billboards and magazine covers, he could raise money seemingly at his leisure. He dated actors, musicians and superstar athletes, cultivate an image as a nerdy do-gooder who intended to donate all his wealth to charity.

Based in the Bahamas, FTX was one of the largest cryptocurrency exchanges – an easy-to-use platform where investors could exchange dollars or euros for digital coins like Bitcoin and Ether. Its valuation was over $30 billion.

But in less than a week in November 2022, a run on deposits exposed an $8 billion hole in FTX’s accounts. Mr. Bankman-Fried resigned, handing power to a team of lawyers who promptly declared bankruptcy. The following month, he was arrested at his luxury apartment in the Bahamas and accused of stealing from clients to fund billions in political contributions, charitable donations and investments in other start-ups.

The investigations took place with surprising speed for such a complex case. Within a few months, three of Bankman-Fried’s top deputies, including a former girlfriend, pleaded guilty to fraud charges and agreed to cooperate with prosecutors. Mr. Bankman-Fried was initially granted home detention, but the judge he revoked his bail in August after determining he attempted to intimidate witnesses and sent him to the Brooklyn Detention Center.

At the October trial, Mr. Bankman-Fried’s former colleagues testified for the prosecution, telling the jury that they had conspired with him to plunder clients’ accounts. When he took the witness stand, Mr. Bankman-Fried seemed evasive at times, repeatedly claiming that he did not remember crucial details of his FTX warrant.

“When he wasn’t outright lying, he was often evasive, quibbling, dodging questions,” Judge Kaplan said Thursday. “I’ve never seen a sight like it.”

After he was convicted, Mr. Bankman-Fried’s lawyers and family embarked on a long-term campaign to obtain a lenient sentence and rewrite the public narrative on FTX’s failure. In a sentencing memo, Marc Mukasey, one of the defense lawyers, argued that Mr Bankman-Fried had sometimes behaved strangely on the witness stand because he was autistic. He also cited the tycoon’s charitable initiatives, arguing that FTX should be a force for good in the world.

But the defense case centered on the money FTX users lost when the exchange failed. After FTX’s bankruptcy, its new leaders pooled billions of dollars to return to customers, in part by liquidating digital coin stocks and selling Bankman-Fried’s stakes in other companies. Mr. Mukasey said those customers would eventually be rehabilitated through the bankruptcy process, bringing the losses caused by Mr. Bankman-Fried’s actions to “zero.”

Prosecutors rejected that argument. While FTX’s new leadership has predicted that customers will eventually get their deposits back, the money they receive will be equivalent to the dollar value of their holdings in November 2022 — and won’t take into account the recent surge in cryptocurrency markets that sent Bitcoin to his highest price ever.

Mr. Bankman-Fried “demonstrated a blatant disregard for the rule of law,” prosecutors wrote in a sentencing memo. “He knew what society considered illegal and unethical, but he ignored what was based on pernicious megalomania.”

Judge Kaplan said of FTX’s victims on Thursday: “The defendant’s assurance that they will be paid in full is misleading. It is logically flawed. It’s speculative.

In recent weeks, prosecutors have filed hundreds of letters from FTX customers explaining how financial losses had devastated their lives. One customer said the collapse had led to “suicidal thoughts”.

“Sam Bankman-Fried will have to think for the rest of his life about the multitude of lives he destroyed with his selfishness and superficiality,” the client wrote. “I really hope justice teaches him the difference between life and video games.”

Another FTX user, Sunil Kavuri, who lost $2 million when the company collapsed, testified at the hearing that the implosion had wiped out money he had planned to spend on a home and his children’s education. children.

“I’ve been living the FTX nightmare for almost two years,” he said.

When Mr. Bankman-Fried spoke, he offered an assortment of sometimes rambling thoughts, apologizing for his mistakes and insisting that FTX had enough resources to make customers whole.

“I made a series of bad decisions,” he said, his leg shaking. “They weren’t selfish decisions. They were not altruistic decisions. They were bad decisions.”

Mr. Bankman-Fried has vowed to appeal his conviction, hiring a lawyer from the law firm Shapiro Arato Bach to oversee that effort. But in his remarks to him, he seemed to accept the fact that he would remain in prison for some time.

“At the end of the day, my useful life is probably over,” he said.

Matthew Goldstein contributed reporting.

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Tech

Harvard Alumni, Tech Moguls, and Best-Selling Authors Drive Nearly $600 Million in Pre-Order Sales

Published

9 months ago

31 July, 2024

Digital Finance News Staff

Harvard Alumni, Tech Moguls, and Best-Selling Authors Drive Nearly $600 Million in Pre-Order Sales

BlockDAG Network’s history is one of innovation, perseverance, and a vision to push the boundaries of blockchain technology. With Harvard alumni, tech moguls, and best-selling authors at the helm, BlockDAG is rewriting the rules of the cryptocurrency game.

CEO Antony Turner, inspired by the successes and shortcomings of Bitcoin and Ethereum, says, “BlockDAG leverages existing technology to push the boundaries of speed, security, and decentralization.” This powerhouse team has led a staggering 1,600% price increase in 20 pre-sale rounds, raising over $63.9 million. The secret? Unparalleled expertise and a bold vision for the future of blockchain.

Let’s dive into BlockDAG’s success story and find out what the future holds for this cryptocurrency.

The Origin: Why BlockDAG Was Created

In a recent interview, BlockDAG CEO Antony Turner perfectly summed up why the market needs BlockDAG’s ongoing revolution. He said:

“The creation of BlockDAG was inspired by Bitcoin and Ethereum, their successes and their shortcomings.

If you look at almost any new technology, it is very rare that the first movers remain at the forefront forever. Later incumbents have a huge advantage in entering a market where the need has been established and the technology is no longer cutting edge.

BlockDAG has done just that: our innovation is incorporating existing technology to provide a better solution, allowing us to push the boundaries of speed, security, and decentralization.”

The Present: How Far Has BlockDAG Come?

BlockDAG’s presale is setting new benchmarks in the cryptocurrency investment landscape. With a stunning 1600% price increase over 20 presale lots, it has already raised over $63.9 million in capital, having sold over 12.43 billion BDAG coins.

This impressive performance underscores the overwhelming confidence of investors in BlockDAG’s vision and leadership. The presale attracted over 20,000 individual investors, with the BlockDAG community growing exponentially by the hour.

These monumental milestones have been achieved thanks to the unparalleled skills, experience and expertise of BlockDAG’s management team:

Antony Turner – Chief Executive Officer

Antony Turner, CEO of BlockDAG, has over 20 years of experience in the Fintech, EdTech, Travel and Crypto industries. He has held senior roles at SPIRIT Blockchain Capital and co-founded Axona-Analytics and SwissOne. Antony excels in financial modeling, business management and scaling growth companies, with expertise in trading, software, IoT, blockchain and cryptocurrency.

Director of Communications

Youssef Khaoulaj, CSO of BlockDAG, is a Smart Contract Auditor, Metaverse Expert, and Red Team Hacker. He ensures system security and disaster preparedness, and advises senior management on security issues.

advisory Committee

Steven Clarke-Martin, a technologist and consultant, excels in enterprise technology, startups, and blockchain, with a focus on DAOs and smart contracts. Maurice Herlihy, a Harvard and MIT graduate, is an award-winning computer scientist at Brown University, with experience in distributed computing and consulting roles, most notably at Algorand.

The Future: Becoming the Cryptocurrency with the Highest Market Cap in the World

Given its impressive track record and a team of geniuses working tirelessly behind the scenes, BlockDAG is quickly approaching the $600 million pre-sale milestone. This crypto powerhouse will soon enter the top 30 cryptocurrencies by market cap.

Currently trading at $0.017 per coin, BlockDAG is expected to hit $1 million in the coming months, with the potential to hit $30 per coin by 2030. Early investors have already enjoyed a 1600% ROI by batch 21, fueling a huge amount of excitement around BlockDAG’s presale. The platform is seeing significant whale buying, and demand is so high that batch 21 is almost sold out. The upcoming batch is expected to drive prices even higher.

Invest in BlockDAG Pre-Sale Now:

Pre-sale: https://purchase.blockdag.network

Website: https://blockdag.network

Telegram: https://t.me/blockDAGnetwork

Discord: Italian: https://discord.gg/Q7BxghMVyu

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How Karak’s Latest Tech Integration Could Make Data Breaches Obsolete

Published

9 months ago

31 July, 2024

Digital Finance News Staff

how-karaks-latest-tech-integration-could-make-data-breaches-obsolete

Space and Time uses zero-knowledge proofs to ensure secure and tamper-proof data processing for smart contracts and enterprises.
The integration facilitates faster development and deployment of Distributed Secure Services (DSS) on the Karak platform.

Karak, a platform known for its strong security capabilities, is enhancing its Distributed Secure Services (DSS) by integrating Space and Time as a zero-knowledge (ZK) coprocessor. This move is intended to strengthen trustless operations across its network, especially in slashing and rewards mechanisms.

Space and Time is a verifiable processing layer that uses zero-knowledge proofs to ensure that computations on decentralized data warehouses are secure and untampered with. This system enables smart contracts, large language models (LLMs), and enterprises to process data without integrity concerns.

The integration with Karak will enable the platform to use Proof of SQL, a new ZK-proof approach developed by Space and Time, to confirm that SQL query results are accurate and have not been tampered with.

One of the key features of this integration is the enhancement of DSS on Karak. DSS are decentralized services that use re-staked assets to secure the various operations they provide, from simple utilities to complex marketplaces. The addition of Space and Time technology enables faster development and deployment of these services, especially by simplifying slashing logic, which is critical to maintaining security and trust in decentralized networks.

Karak Chain

Additionally, Space and Time is developing its own DSS for blockchain data indexing. This service will allow community members to easily participate in the network by running indexing nodes. This is especially beneficial for applications that require high security and decentralization, such as decentralized data indexing.

The integration architecture follows a detailed and secure flow. When a Karak slashing contract needs to verify a SQL query, it calls the Space and Time relayer contract with the required SQL statement. This contract then emits an event with the query details, which is detected by operators in the Space and Time network.

These operators, responsible for indexing and monitoring DSS activities, validate the event and route the work to a verification operator who runs the query and generates the necessary ZK proof.

The result, along with a cryptographic commitment on the queried data, is sent to the relayer contract, which verifies and returns the data to the Karak cutter contract. This end-to-end process ensures that the data used in decision-making, such as determining penalties within the DSS, is accurate and reliable.

Karak’s mission is to provide universal security, but it also extends the capabilities of Space and Time to support multiple DSSs with their data indexing needs. As these technologies evolve, they are set to redefine the secure, decentralized computing landscape, making it more accessible and efficient for developers and enterprises alike. This integration represents a significant step towards a more secure and verifiable digital infrastructure in the blockchain space.

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Cryptocurrency Payments: Should CFOs Consider This Ferrari-Approved Trend?

Published

9 months ago

30 July, 2024

Digital Finance News Staff

Cryptocurrency Payments: Should CFOs Consider This Ferrari-Approved Trend?

Iconic Italian luxury carmaker Ferrari has announced the expansion of its cryptocurrency payment system to its European dealer network.

The move, which follows a successful launch in North America less than a year ago, raises a crucial question for CFOs across industries: Is it time to consider accepting cryptocurrency as a form of payment for your business?

Ferrari’s move isn’t an isolated one. It’s part of a broader trend of companies embracing digital assets. As of 2024, we’re seeing a growing number of companies, from tech giants to traditional retailers, accepting cryptocurrencies.

This change is determined by several factors:

Growing mainstream adoption of cryptocurrencies
Growing demand from tech-savvy and affluent consumers
Potential for faster and cheaper international transactions
Desire to project an innovative brand image

Ferrari’s approach is particularly noteworthy. They have partnered with BitPay, a leading cryptocurrency payment processor, to allow customers to purchase vehicles using Bitcoin, Ethereum, and USDC. This satisfies their tech-savvy and affluent customer base, many of whom have large digital asset holdings.

Navigating Opportunities and Challenges

Ferrari’s adoption of cryptocurrency payments illustrates several key opportunities for companies considering this move. First, it opens the door to new customer segments. By accepting cryptocurrency, Ferrari is targeting a younger, tech-savvy demographic—people who have embraced digital assets and see them as a legitimate form of value exchange. This strategy allows the company to connect with a new generation of affluent customers who may prefer to conduct high-value transactions in cryptocurrency.

Second, cryptocurrency adoption increases global reach. International payments, which can be complex and time-consuming with traditional methods, become significantly easier with cryptocurrency transactions. This can be especially beneficial for businesses that operate in multiple countries or deal with international customers, as it potentially reduces friction in cross-border transactions.

Third, accepting cryptocurrency positions a company as innovative and forward-thinking. In today’s fast-paced business environment, being seen as an early adopter of emerging technologies can significantly boost a brand’s image. Ferrari’s move sends a clear message that they are at the forefront of financial innovation, which can appeal to customers who value cutting-edge approaches.

Finally, there is the potential for cost savings. Traditional payment methods, especially for international transactions, often incur substantial fees. Cryptocurrency transactions, on the other hand, can offer lower transaction costs. For high-value purchases, such as luxury cars, these savings could be significant for both the business and the customer.

While the opportunities are enticing, accepting cryptocurrency payments also presents significant challenges that businesses must address. The most notable of these is volatility. Cryptocurrency values can fluctuate dramatically, sometimes within hours, posing potential risk to businesses that accept them as payment. Ferrari addressed this challenge by implementing a system that instantly converts cryptocurrency received into traditional fiat currencies, effectively mitigating the risk of value fluctuations.

Regulatory uncertainty is another major concern. The legal landscape surrounding cryptocurrencies is still evolving in many jurisdictions around the world. This lack of clear and consistent regulations can create compliance challenges for companies, especially those operating internationally. Companies must remain vigilant and adaptable as new laws and regulations emerge, which can be a resource-intensive process.

Implementation costs are also a significant obstacle. Integrating cryptocurrency payment systems often requires substantial investment in new technology infrastructure and extensive staff training. This can be especially challenging for small businesses or those with limited IT resources. The costs are not just financial; a significant investment of time is also required to ensure smooth implementation and operation.

Finally, security concerns loom large in the world of cryptocurrency transactions. While blockchain technology offers some security benefits, cryptocurrency transactions still require robust cybersecurity measures to protect against fraud, hacks, and other malicious activity. Businesses must invest in robust security protocols and stay up-to-date on the latest threats and protections, adding another layer of complexity and potential costs to accepting cryptocurrency payments.

Strategic Considerations for CFOs

If you’re thinking of following in Ferrari’s footsteps, here are the key factors to consider:

Risk Assessment: Carefully evaluate potential risks to your business, including financial, regulatory, and reputational risks.
Market Analysis: Evaluate whether your customer base is significantly interested in using cryptocurrencies for payments.
Technology Infrastructure: Determine the costs and complexities of implementing a cryptographic payment system that integrates with existing financial processes.
Regulatory Compliance: Ensure that cryptocurrency acceptance is in line with local regulations in all markets you operate in. Ferrari’s gradual rollout demonstrates the importance of this consideration.
Financial Impact: Analyze how accepting cryptocurrency could impact your cash flow, accounting practices, and financial reporting.
Partnership Evaluation: Consider partnering with established crypto payment processors to reduce risk and simplify implementation.
Employee Training: Plan comprehensive training to ensure your team is equipped to handle cryptocurrency transactions and answer customer questions.

While Ferrari’s adoption of cryptocurrency payments is exciting, it’s important to consider this trend carefully.

A CFO’s decision to adopt cryptocurrency as a means of payment should be based on a thorough analysis of your company’s specific needs, risk tolerance, and strategic goals. Cryptocurrency payments may not be right for every business, but for some, they could provide a competitive advantage in an increasingly digital marketplace.

Remember that the landscape is rapidly evolving. Stay informed about regulatory changes, technological advancements, and changing consumer preferences. Whether you decide to accelerate your crypto engines now or wait in the pit, keeping this payment option on your radar is critical to navigating the future of business transactions.

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Bitcoin Tumbles as Crypto Market Selloff Mirrors Tech Stocks’ Plunge

Published

9 months ago

30 July, 2024

Digital Finance News Staff

Bitcoin Tumbles as Crypto Market Sell-Off Mirrors Tech Stock Slide

The world’s largest cryptocurrency, Bitcoin (BTC), suffered a significant price decline on Wednesday, falling below $65,000. The decline coincides with a broader market sell-off that has hit technology stocks hard.

Cryptocurrency Liquidations Hit Hard

CoinGlass data reveals a surge in long liquidations in the cryptocurrency market over the past 24 hours. These liquidations, totaling $220.7 million, represent forced selling of positions that had bet on price increases. Bitcoin itself accounted for $14.8 million in long liquidations.

Ethereum leads the decline

Ethereal (ETH), the second-largest cryptocurrency, has seen a steeper decline than Bitcoin, falling nearly 8% to trade around $3,177. This decline mirrors Bitcoin’s price action, suggesting a broader market correction.

Cryptocurrency market crash mirrors tech sector crash

The cryptocurrency market decline appears to be linked to the significant losses seen in the U.S. stock market on Wednesday. Stock market listing The index, heavily weighted toward technology stocks, posted its sharpest decline since October 2022, falling 3.65%.

Analysts cite multiple factors

Several factors may have contributed to the cryptocurrency market crash:

Tech earnings are underwhelming: Earnings reports from tech giants like Alphabet are disappointing (Google(the parent company of), on Tuesday, triggered a sell-off in technology stocks with higher-than-expected capital expenditures that could have repercussions on the cryptocurrency market.
Changing Political Landscape: The potential impact of the upcoming US elections and changes in Washington’s policy stance towards cryptocurrencies could influence investor sentiment.
Ethereal ETF Hopes on the line: While bullish sentiment around a potential U.S. Ethereum ETF initially boosted the market, delays or rejections could dampen enthusiasm.

Analysts’ opinions differ

Despite the short-term losses, some analysts remain optimistic about Bitcoin’s long-term prospects. Singapore-based cryptocurrency trading firm QCP Capital believes Bitcoin could follow a similar trajectory to its post-ETF launch all-time high, with Ethereum potentially converging with its previous highs on sustained institutional interest.

Rich Dad Poor Dad Author’s Prediction

Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, predicts a potential surge in the price of Bitcoin if Donald Trump is re-elected as US president. He predicts a surge to $105,000 per coin by August 2025, fueled by a weaker dollar that is set to boost US exports.

BTC/USD Technical Outlook

Bitcoin price is currently trading below key support levels, including the $65,500 level and the 100 hourly moving average. A break below the $64,000 level could lead to further declines towards the $63,200 support zone. However, a recovery above the $65,500 level could trigger another increase in the coming sessions.

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