Why can SBF and FTX have legal problems

FTX CEO Sam Bankman Fred quickly became a pariah in the crypto community.

The CEO of Binance revealed that after FTX's liquidity crunch, it will be acquired by Binance.

Binance is the largest cryptocurrency trading platform in terms of trading volume.

And the acquisition of Binance's biggest competitor would make Binance even stronger than it was.

Meanwhile, Fred Bankman's fortunes are heading for the worst.

Within two days, Sam Bankman Fred, the second richest man in the cryptocurrency market, lost almost all of his fortune.

According to the Bloomberg Billionaires Index, Bankman's fortune was worth $16 billion before the liquidity crisis.

Now his fortune is down to $991 million.

It seems Bankman's problems are just beginning.

Experts believe that both FTX and its founder could see a large number of lawsuits awaiting them.

Why can SBF and FTX have legal problems?

The cryptocurrency market is experiencing a sharp decline due to the impact of the FTX crisis.

Coinbase research indicated that two-thirds of the market sell-off is a direct result of a faltering macroeconomic outlook.

As the general market will swing from news of inflation and recession, the cryptocurrency market will also swing more.

It can be argued that the current sale is a direct result of the actions of FTX and "Sam Bankman Fred".

Lucas Nuzzi, head of research and development at CoinMetrics, believes that FTX provided a massive bailout for Alameda.

Bankman also owns this trading company.

He also claims that this bailout has caused FTX's balance sheet to fall so dramatically that it can no longer meet its obligations.

Algorod, one of the biggest influencers in the crypto space, believes that Bankman could end up in prison.

Posted using Tribaldex Blog