On Thursday, a federal judge sentenced former FTX CEO Sam Bankman-Fried to 25 years in prison after he was found guilty on seven charges of wire fraud and money-laundering. The scam he pulled was fairly simple: He and his partners created an exchange, FTX, that took customer deposits to invest in and trade cryptocurrencies. Some of those deposits were secretly funneled to his other company, hedge fund Alameda Research, which he’d originally created to arbitrage differences among crypto prices in various countries. According to the government’s case, which it won, Alameda used that money for various things it shouldn’t have, like investing in other crypto startups, buying some very nice real estate, supporting political campaigns and — most important for purposes of the scam — propping up FTX’s proprietary crypto token, FTT. A few docume… Click below to read the full story from TechCrunch
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