Bankman-Fried trial could end with “new rulebook’ for crypto: Expert
- Sam Bankman-Fried is on trial for what's the biggest fraud case in crypto.
- It relates to the collapse of crypto exchange FTX in 2022.
- Kavita Gupta, partner at Delta Blockchain Fund, says the trial could have positive implications for crypto.
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The trial of Sam Bankman-Fried, the founder and former CEO of collapsed cryptocurrency exchange FTX, kicked off on Tuesday in the US. It’s the biggest and highest-profile crypto case, with prosecution coming nearly a year since the FTX implosion that sent shockwaves across crypto and the broader financial markets space.
If the government proves its case against Bankman-Fried, including for fraud, a jury could send the disgraced ‘crypto genius” to jail for a long time. Under the law, all charges against the ex-FTX CEO carries a maximum sentence of up to 115 years.
Expert on implications of SBF trial
Copy link to sectionWhile the outcome of the high-profile trial could see Bankman-Fried hooked in jail for life, an expert has shared his opinion on the potential implication to crypto. Kavita Gupta, partner at Delta Blockchain Fund, told Yahoo Finance Live that SBF’s trial could help bring more regulatory clarity to crypto.
All eyes are on @SBF_FTX's trial which has began in New York
But what can the crypto industry expect from the ongoing trial?@Deltabc_fund's Kavita Gupta explains how the FTX trial will set a precedent for crypto regulations
Listen in to her inputs on @YahooFinance pic.twitter.com/dAnE8KU6Xy— Delta Blockchain Fund (@Deltabc_fund) October 4, 2023
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According to Gupta, it’s an outcome that could benefit an industry that needs a healthy dose of trust.
“I feel like this whole trial is going to set up the new rulebook for us. And which, honestly, everyone in this industry is very excited about.”
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Gupta believes the US has fallen behind countries such as the UK, France, UK, and Singapore in the quest to have a supportive regulatory environment for the innovation being sprouted by crypto. In her opinion, the regulation process in the US “has become too politicized”, with the SEC not keen to offer clarity. She opined:
“Because every time they have gone in front of the court, every time they have gone in front of the Senate, it feels like they themselves are very confused.”
One of the criticisms leveled against the SEC in the aftermath of FTX’s implosion and bankruptcy was how the regulator ostensibly worked “closely” with Bankman-Fried. The broader sentiment is that the SEC Chair Gary Gensler hasn’t been keen on protecting consumers as they purport.
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