Sam Bankman-Fried’s Day In Jail Will Come: Mike Novogratz

Mike Novogratz Comment On Sam Bankman-Fried’s Chances Of Getting Jail: The Galaxy Digital CEO said he was surprised to see the FTX CEO running around freely in the Bahamas. Calling FTX’s handling of user funds as fraud, Novogratz said investors in the exchange did not sign up for lending their funds for his personal affairs. Following the news of the crypto exchange’s liquidity issues earlier in November, Galaxy Digital revealed it has exposure to FTX.

The company said its exposure to the troubled exchange was around $76.8 million, it said at the time. However, around $47.5 million of the exposed funds were in the withdrawal process, it said. On the other side, the chances of Sam Bankman-Fried getting jail term will depend on the ongoing investigations in various jurisdictions.

“Running Around The Bahamas”

Novogratz said he was surprised that SBF was running around freely in Bahamas. Speaking to CNBC on Wednesday, the Galaxy CEO said FTX did things with user funds that were illegal. Novogratz compared the SBF situation with a theft case he witnessed in his apartment. He said the police found them within three days and got the culprits arrested, while SBF is roaming freely.

“SBF certainly did things with our coins that were illegal, and he’s running around the Bahamas. When you deposit your dollars on his exchange, they are your coins, and lending them to his family office was not part of the deal. That’s fraud.”

Also Read: FTX Reports $51 Billion Crash In Collateral, Sequoia Apologises Investors

While releasing Galaxy’s third quarter results, Novogratz said the crypto market continues to face headwinds in the macroeconomic front. However, he said his company is working on building for the future state of crypto’s institutional adoption.

Credit To Crypto Market

Meanwhile, Perianne Boring, founder of the Chamber of Digital Commerce, credited the crypto industry for exposing SBF’s fraudulent activities but not the regulators. How could this have happened under the nose of regulators, she questioned. The collapse of SBF’s crypto empire really began when the news of liquidity crunch affected the FTX token (FTT) price. As of writing, FTT price stands at $1.29, down 4.85% in the last 24 hours, according to price tracking platform CoinMarketCap.

Also Read: Binance CEO “CZ” Bullish On Crypto Industry, Claims Stronger Recovery

Anvesh reports major developments around crypto adoption and trading opportunities. Having been associated with the industry since 2016, he is now a strong advocate of decentralized technologies. Anvesh is currently based in India. Follow Anvesh on Twitter at @AnveshReddyBTC and reach him out at [email protected]

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