The former United States Securities and Exchange Commision (SEC) Chair, Jay Clayton in a recent CNBC interview talked about FTX and Sam Bankman-Fried’s case. He also shared his vision over the recent events that took place and also helped to look over the case from his perspective.
Clayton said that the priority within the case should be to recover the funds of customers and investors. He added that numerous individuals and institutions put their funds within the firm while trusting SBF. But they were left out with empty hands.
Given the situation on one side SBF claimed to not have any money but filed for a 250 million USD bail, generally 10% of the amount which is 25 million USD, yet to be paid. The host asked if the process is “a sham deal”
Former SEC chair replied that he does not think of it as a sham deal citing the weighing on of many federal prosecutors and judges. He added that till now there is no complaint about it ‘from the experienced community’ and he thinks that this is going to fade away soon.
Clayton had been a crypto and digital assets critique earlier while serving as the chief for the agency. Notably, it was his tenure when one of the most popular lawsuits filed by the SEC against payment protocol Ripple.
However it didn’t last for long as after stepping down from the SEC, his perception towards the industry witnessed a change. He later joined such companies and projects underlying or pro-crypto.
Founder and former CEO of collapsed crypto exchange FTX, Sam
Bankman-Fried was reportedly granted bail about last week.
The former FTX was permitted to remain under house detention while awaiting trial after his family put up their home as collateral. According to allegations, the founder of FTX participated in a fraud that caused his clients to lose more than $8 billion.
In that regard, the leniency of the U.S. court and the allegation that SBF’s parents were unable to post bond generated various issues with the legal system. Social media users expressed their worries and mistrust regarding the Bankman-Fried affair.
SBF made an effort to obstruct extradition from the Bahamas. The founder of FTX was imprisoned in one of the world’s most hazardous facilities for weeks. He nevertheless reportedly received “special treatment” and perks that other convicts are not allowed, according to numerous accounts.
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Source: https://www.thecoinrepublic.com/2022/12/28/bankman-fried-cases-legal-process-isnt-a-sham-deal-former-sec-chair/