Sam Bankman-Fried should be relieved that he has been sentenced to only 25 years in prison along with the forfeiture of over $11 billion. That’s because the man, once feted as a cryptocurrency wunderkind, was facing an impending sentence of close to 100 years for his crime of siphoning customer money, banking on the odds that he would never be caught. As a result, his now-bankrupt firm FTX suffered a historic collapse that saw billions of dollars go up in flames at the expense of multitudes of people who were financially ruined. The 32-year-old was arrested in 2022 after enquiry into FTX revealed an $8 billion hole of missing customer funds under his watch. The jury wasn’t swayed by the defence that he had fallen victim to a market downturn, largely because the evidence was so overwhelming and his defence so contradictory.
Also Read
FTX founder Sam Bankman-Fried sentenced to 25 years for $8 billion crypto theft
Though the sentence was not as harsh as anticipated, 25 years is still pretty high up on the white collar rogues’ gallery. But not many could see through the make-believe world of Bankman-Fried; in fact, few found anything amiss at the rapid pace in which he grew his wealth. He launched FTX in 2019 and grew it into one of the leading exchanges for buying and selling crypto derivatives. In just three years, investors valued FTX and its US operations at a combined $40 billion. He was in fact heralded as a modern JP Morgan for swooping in to save troubled crypto firms. There were two reasons for this: everything is forgotten as long as the moolah keeps coming, and second, Bankman-Fried carefully cultivated his eccentric image of a man who would often sleep on the floor of his office, etc.
It’s important to remember that the man lost everything due to just one reason: unbridled greed. The intense and selfish desire for more wealth and power—by hook or by crook—has consumed and finally destroyed many like him all over the world. Corporate history is replete with examples of self-destructing individuals who had everything that is possible materially, yet created bubbles around them in their desperate yearning for more and more. How could Enron’s Ken Lay, for example, sell thousands of shares of his company’s once high-flying stock just before it crashed, leaving employees with nothing? How could Tyco’s Dennis Kozlowski use company funds to throw his wife a million-dollar birthday bash on an Italian island? They were both considered trailblazers for making their companies world-famous names—till the cookie crumbled.
Also Read Happiness in India: India’s economic growth over time does not show up in improved happiness score and ranking The giant has arrived: India’s rise as a global power creates a tightrope of domestic and international aspects The next wave of co-lending partnerships The India-Bhutan story: India understands the urgency and needs of its neighbour Also Read
Sam Bankman-Fried says 63 to 78 mths should guide sentencing for FTX fraud
There are examples galore in India, too: Satyam’s Ramalinga Raju, the uber-rich Wadhawan brothers—Kapil and Dheeraj—Naresh Goyal, Rana Kapoor, the Singh brothers, Vijay Mallya, Nirav Modi, Mehul Choksi, and so on. By idealising money, they shielded themselves from the guilt and shame connected with its deeper and darker associations. In the process, they acquired an arrogance which made them believe they can get away with anything. Example: Bankman-Fried’s lack of remorse and history of statements like” “F**k regulators.” They are real bad examples for many of the young professionals who might think that the big bad corporate world has lost its moral compass. But they need to be told that thankfully, the morally corrupt are only exceptions. And exceptions don’t prove the rule. Bankman-Fried’s conviction as well as that of many others like him should stand as a clear deterrent for aspiring fraudsters in the corporate world.
Sam Bankman-Fried should be relieved that he has been sentenced to only 25 years in prison along with the forfeiture of over $11 billion. That’s because the man, once feted as a cryptocurrency wunderkind, was facing an impending sentence of close to 100 years for his crime of siphoning customer money, banking on the odds that he would never be caught. As a result, his now-bankrupt firm FTX suffered a historic collapse that saw billions of dollars go up in flames at the expense of multitudes of people who were financially ruined. The 32-year-old was arrested in 2022 after enquiry into FTX revealed an $8 billion hole of missing customer funds under his watch. The jury wasn’t swayed by the defence that he had fallen victim to a market downturn, largely because the evidence was so overwhelming and his defence so contradictory.
Though the sentence was not as harsh as anticipated, 25 years is still pretty high up on the white collar rogues’ gallery. But not many could see through the make-believe world of Bankman-Fried; in fact, few found anything amiss at the rapid pace in which he grew his wealth. He launched FTX in 2019 and grew it into one of the leading exchanges for buying and selling crypto derivatives. In just three years, investors valued FTX and its US operations at a combined $40 billion. He was in fact heralded as a modern JP Morgan for swooping in to save troubled crypto firms. There were two reasons for this: everything is forgotten as long as the moolah keeps coming, and second, Bankman-Fried carefully cultivated his eccentric image of a man who would often sleep on the floor of his office, etc.
It’s important to remember that the man lost everything due to just one reason: unbridled greed. The intense and selfish desire for more wealth and power—by hook or by crook—has consumed and finally destroyed many like him all over the world. Corporate history is replete with examples of self-destructing individuals who had everything that is possible materially, yet created bubbles around them in their desperate yearning for more and more. How could Enron’s Ken Lay, for example, sell thousands of shares of his company’s once high-flying stock just before it crashed, leaving employees with nothing? How could Tyco’s Dennis Kozlowski use company funds to throw his wife a million-dollar birthday bash on an Italian island? They were both considered trailblazers for making their companies world-famous names—till the cookie crumbled.
There are examples galore in India, too: Satyam’s Ramalinga Raju, the uber-rich Wadhawan brothers—Kapil and Dheeraj—Naresh Goyal, Rana Kapoor, the Singh brothers, Vijay Mallya, Nirav Modi, Mehul Choksi, and so on. By idealising money, they shielded themselves from the guilt and shame connected with its deeper and darker associations. In the process, they acquired an arrogance which made them believe they can get away with anything. Example: Bankman-Fried’s lack of remorse and history of statements like” “F**k regulators.” They are real bad examples for many of the young professionals who might think that the big bad corporate world has lost its moral compass. But they need to be told that thankfully, the morally corrupt are only exceptions. And exceptions don’t prove the rule. Bankman-Fried’s conviction as well as that of many others like him should stand as a clear deterrent for aspiring fraudsters in the corporate world.
Get live Share Market updates, Stock Market Quotes, and the latest India News and business news on Financial Express. Download the Financial Express App for the latest finance news.
White collar rogues’ gallery: Sam Bankman-Fried’s conviction among many others, should be clear deterrent for aspiring corporate fraudsters
31
1
30.03.2024
Sam Bankman-Fried should be relieved that he has been sentenced to only 25 years in prison along with the forfeiture of over $11 billion. That’s because the man, once feted as a cryptocurrency wunderkind, was facing an impending sentence of close to 100 years for his crime of siphoning customer money, banking on the odds that he would never be caught. As a result, his now-bankrupt firm FTX suffered a historic collapse that saw billions of dollars go up in flames at the expense of multitudes of people who were financially ruined. The 32-year-old was arrested in 2022 after enquiry into FTX revealed an $8 billion hole of missing customer funds under his watch. The jury wasn’t swayed by the defence that he had fallen victim to a market downturn, largely because the evidence was so overwhelming and his defence so contradictory.
Also ReadFTX founder Sam Bankman-Fried sentenced to 25 years for $8 billion crypto theft
Though the sentence was not as harsh as anticipated, 25 years is still pretty high up on the white collar rogues’ gallery. But not many could see through the make-believe world of Bankman-Fried; in fact, few found anything amiss at the rapid pace in which he grew his wealth. He launched FTX in 2019 and grew it into one of the leading exchanges for buying and selling crypto derivatives. In just three years, investors valued FTX and its US operations at a combined $40 billion. He was in fact heralded as a modern JP Morgan for swooping in to save troubled crypto firms. There were two reasons for this: everything is forgotten as long as the moolah keeps coming, and second, Bankman-Fried carefully cultivated his eccentric image of a man who would often sleep on the floor of his office, etc.
It’s important to remember that the man lost everything due to just one reason: unbridled greed. The intense and selfish desire for more wealth and power—by hook or by crook—has consumed and finally........
© The Financial Express
visit website
login
who are we?
contact us
qosheapp
Toi Staff
Gideon Levy
Belen Fernandez
Rami G Khouri
Mort Laitner
Ali Fathollah-Nejad
Nikkei Editorial
