'Billions in user funds were lost' - crypto community reacts to SBF guilty verdict

cyptouser7 months agoCryptocurrencies News116

Sam Bankman-Fried’s (SBF) trial in New York under Judge Kaplan has ended with the jury finding him guilty of all charges brought against him.

The news has created a buzz within the crypto community, generating several reactions from major stakeholders within the industry.

CryptoSlate has curated some of these reactions below:

Hayden Adams, Uniswap’s founder, noted that the guilty verdict doesn’t necessarily translate to a victory for the crypto industry as “billions in user funds were lost and our industry took a massive reputational hit.”

However, he conceded that the verdict was the “right outcome.”

Adams further characterized SBF’s actions and strategies as detrimental to the broader crypto community, saying:

“I don’t buy his effective altruism at all – I think its a clever marketing shtick. Basically, he profits off sketchy business that harms people but gets to call himself an altruist because he claims he will eventually give all his money away”

He added that the real beneficiaries are a select group of law firms and crypto skeptics who will continue to use the incident to beat the industry.

“Next cycle, we need to do better as an industry – focus on the tech + our values, recognize the warning signs, and ignore the personality cult sociopaths,” Adams added.

Alfred Lin, a partner with venture capital firm Sequoia, said:

“Today’s swift and unanimous verdict confirms what we already knew: that SBF misled and deceived so many, from customers and employees to business partners and investors, including myself and Sequoia.”

Lin continued that the firm’s reevaluation of its due diligence also showed that the disgraced founder “deliberately misled and lied” to investors.

Meanwhile, Erik Voorhees, the founder of ShapeShift, used the opportunity to point out the role regulators played in the situation. Voorhees said:

“Let’s remember that he operated “the safe and regulated” exchange, and not a single regulator caught him. It was, instead, the market, which is not only a great fountain of innovation, but also the best arbiter of discipline and justice.”

Adam Cochran, a managing partner at Cinneamhain Ventures, emphasized that the SBF trial serves as a stark reminder for others in the crypto space. According to him, accountability catches up with those who play with people’s funds, and the first to cooperate usually faces the lightest penalties.

Cochran further noted that Bankman-Fried’s legal predicament was substantially worsened by the incriminating testimony of former associates, including former Alameda Research CEO Caroline Ellison.

He concluded that:

“Caroline and others came forward first and will face minimal time…So do you really trust your coconspirators when it’s all on the line?”

The content on this website comes from the Internet. Due to the inconvenience of proofreading the authenticity and accuracy of the copyright or content of some content, it may be temporarily impossible to confirm the authenticity and accuracy of the copyright or content. For copyright issues or other issues caused by this, please Call or email this site. It will be deleted or changed immediately after verification.

related articles

Central Banks look to unlock DeFi possibilities in cross-border CBDCs

The Bank for International Settlements (BIS), in collaboration with the central banks of France, Sin...

Morgan Stanley reveals $270 million investment in Bitcoin ETFs, making it top GBTC holder

Morgan Stanley revealed a $269.9 million investment in spot Bitcoin ETFs via Grayscale’s GBTC in its...

HECO Chain exploiter anonymizes $145M of Ether on Tornado Cash in 8 days

HECO Chain exploiter anonymizes $145M of Ether on Tornado Cash in 8 days

25cc9d4a˃A crypto wallet address linked to the HECO Chain exploiter transferred and anonymized nearl...

Bitcoin privacy will survive despite CoinJoin closure — zkSNACKs CEO

Bitcoin privacy will survive despite CoinJoin closure — zkSNACKs CEO

55966e89˃The Bitcoin (BTC) ecosystem will soon lose an important privacy-enhancing service after zkS...

Ripple legal chief flags misleading statements in SEC chair Senate committee remarks

Ripple’s (XRP) chief legal officer, Stuart Alderoty, asserted that Gary Gensler, the U.S. Secu...

Crypto Biz: SEC targets Robinhood, Grayscale’s Ethereum ETFs, and more

Crypto Biz: SEC targets Robinhood, Grayscale’s Ethereum ETFs, and more

55966e89˃Another Wells notice has hit the crypto industry as the United States Securities and Exchan...