Sam Bankman-Fried (SBF) led the FTX crash has caused a heavy dent in the digital asset market. As the FTX contagion is on a spread, the crypto community and leaders have called out watchdogs for letting SBF free till now. However, the XRP lawyer dropped his predictions over SBF’s possible arrest.
SBF’s FTX-BlockFi deal was a fraud?
John Deaton, XRP holders’ lawyer in the SEC vs Ripple lawsuit asserted that the FTX and BlockFi deal was also fraudulent. SBF made it a condition that funds to be held on FTX while he lend it out to his other company without permission. This directly constitutes theft.
This process was repeatedly done by SBF which establishes an intent. He misappropriated those funds to loan Alameda. However, he used the same funds for further acquisitions and political donations.
SBF used customer funds to buy real estate worth over $100 million in his parents’ names. While XRP lawyer claims that the BlockFi deal alone provides U.S. jurisdiction and specific intent jail SBF. However, BlockFi is likely to file to bankruptcy.
Will FTX’s Ex-CEO will face jail?
Deaton highlighted that the only legitimate debate here regarding SBF jail is whether it should happen now or after some weeks. This will be decided after acquiring more specific evidence. However, several experts have suggested that there is a lot of evidence to jail SBF now.
XRP lawyer dropped the hint that these actions against SBF will bring all the lobbied people to the table in order to cut a deal with the US Criminal Division.
However, If SBF ever faced the prosecution then don’t be surprised to see the final verdict. The ex-FTX CEO can get a lighter sentence than others.
Coingape reported that the Turkish government has seized FTX’s assets in its country. While they are pressing charges against SBF and others with crimes including money laundering, market manipulation and fraud.
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