Hayden Adams, the founder of Uniswap, one of the world’s largest decentralized exchanges (DEXes), agrees with the jury’s decision to find Sam Bankman-fried, also known as SBF, the disgraced founder of FTX, guilty on all seven charges brought forward by the prosecution. However, Adams believes that it is not the time to celebrate.
In a statement on November 3, Adams, an influential figure in decentralized finance (DeFi), acknowledged that the jury’s decision might be correct, but he emphasized that the industry should not overlook the negative consequences of the FTX bankruptcy. He pointed out that not only did users lose billions of dollars, but the entire industry suffered a significant blow to its reputation.
According to Adams, the only winners in this case are the lawyers involved and the crypto opponents, whom he did not mention specifically. He believes that the collapse of FTX in November 2022 marked a dark period in the crypto industry. The timing of the collapse, coinciding with a challenging year for leading assets like bitcoin (BTC) and ethereum (ETH), caught the community off guard.
Shortly before declaring bankruptcy, Alameda Research and Caroline Ellison, a top executive associated with FTX, expressed their willingness to buy back FTT, the crypto token issued by FTX. However, the United States Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) filed charges against FTX and Sam Bankman-fried, accusing them of fraudulent activities.
The DOJ charged Bankman-Fried with various charges, including conspiracy to commit wire fraud and money laundering. On the other hand, the SEC accused him of orchestrating a scheme to defraud investors and customers by misleading them about the health of FTX and its trading wing, Alameda Research. Bankman-Fried pleaded not guilty to all charges.
After enduring a four-week trial that began in early October, Bankman-Fried was found guilty of seven criminal counts. However, the official sentencing will take place in March 2024, and he could potentially face a maximum sentence of 115 years in prison.
Reflecting on the FTX collapse, Adams believes that the crypto industry should learn from this incident and focus on technology and the values that underpin it. He advocates for the development of decentralized systems that are open, auditable, and secure. To protect themselves, Adams advises crypto users to be cautious of “personality cult sociopaths” like Sam Bankman-Fried, who managed to thrive in the industry before eventually being caught after FTX’s downfall.
### News source: bitcoinist.com