Can SBF’s FTX CEO face legal problems like Kwon? | Media Pyro

Sam Bankman-Fried is moving fast in the crypto community. After the financial crisis, major crypto exchange SBF FTX will be acquired by Binance, CEO Changpeng Zhou revealed. Binance is the largest crypto exchange and having its biggest competition, CZ is the most powerful person in crypto.

Meanwhile, SBF’s fortunes are changing. In two days, Sam Bankman-Fried, the second-largest person in crypto, has lost almost all of his wealth. According to Bloomberg’s Billionaire Index, SBF was worth $16 billion before the financial crisis. However, he is now worth ninety one million dollars.

It looks like SBF’s problems are just beginning. Experts believe that FTX and its founder can see a lot of lawsuits going on.

Why SBF and FTX can cause legal problems

The crypto community is abuzz about the FTX crisis. Until now, most of the crypto bear market was a result of macroeconomic conditions. Coinbase research indicated that two-thirds of the market selloff was a direct result of the difficult macroeconomic outlook. As the general market turns from the news of inflation and recession, so does the crypto market.

Instead, the current trade is a direct result of the work of FTX and Sam Bankman-Fried. Lucas Nuzzi, head of R&D at Coin Metrics believes that FTX provided a great recovery to Alameda Research. This marketing company is also owned by SBF. He added that this recovery would cause a significant dent in FTX’s already illiquid balance sheet.

Algorod, one of the biggest crypto developers, believes that SBF will end up in jail. David Bailey, the CEO of Bitcoin Magazine, says that FTX is 3AC 2.0. He claims that SBF is running a Ponzi scheme.

Binance Closes FTX Deal

Experts fear that Binance will not be able to complete the FTX process. It is not yet legally binding because Binance has only issued a letter of intent. If Binance pulls out, it could be the end of FTX.

Nidhish is a technology enthusiast and his aim is to find innovative technological solutions to solve some of the most pressing issues in society. He is a strong believer in networking and wants to work on the mainstream adoption of Blockchain. He is also big on all popular sports and likes to talk about many different topics.

The content may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your financial loss.