Sep 28, 2023

As Sam Bankman-Fried's trial approaches on Oct. 3, CoinDesk TV producers asked people in New York City what they know about about FTX collapse and the exchange's founder.

Video transcript

Was the world's second largest crypto exchange and had backing from some of the biggest venture capitalists like Sequoia capital until it all collapsed. Facing scrutiny with the exchange is founder Sam Bank Fried. Once the White Knight of crypto, 31 year old is now in jail awaiting trial facing seven charges ranging from wire fraud to other conspiracy charges. Coin desk TV, producers, Dylan Mass and Victor Chen recently visited New York City's financial district to see what people know about Sam Bank been freed. He's a guy who everybody. So my money got stuck in it. I know someone who's all his life saving was stuck in it and said there's nothing that people can do about it. I basically, I just heard about it briefly that it's like a fraud case involving crypto. He was taking the money from the platform and he was moving it into another form and people didn't know that actually those money were his their money and eventually they found out. So the whole platform collapsed when you start using your clients money to play with it. That's where, you know, you know, the possibility of frauds and that's where the regulators come in. Saman Fried's trial is set to begin on October 3rd in New York City. Here's how New Yorkers think the trial will go. They earned their entire life and they put it in something which they trusted will work. But eventually it's due to some scam or, you know, some inflated price or bad decisions, it didn't work. So there is a risk associated and if it was done in a fraudulent way to scam people, then definitely he should be charged with the right legal procedures. SPF is blaming the lawyers. All right. So he's blaming the lawyer, which I think there is a bit of a case there, but I don't think it's going to exonerate him. I think the lawyers from Sullivan and Cromwell, they got a little bit too close to the case beforehand, but that's just, that's a judgment call. I don't think he skates. I think he's going to probably do a little bit of time and then a long, I don't know, a bunch of community service probably pay a hefty fine as well, but not in Bitcoin in dollars. I think he'll be guilty by the end of this. I think the facts are going to bear that out. There is a tremendous amount of, of a lack of oversight. I think in the very best of circumstances, he should have known what was going on. Uh He was not set up. FTX was not set up to win they were set up for failure and I think he, he'll get out eventually. I think he's powerful enough. I mean, he, he has to come a big sum of money and I think he's going to get out very soon. I just presume there are lots of individuals who have been kind of like caught out because of this. So I'm sure he will be found guilty. I'll say he got a pretty good liars, but still he should be guilty also. He should be guilty and he reserve was coming for her. The jury selection process could take days to see 10 or 12 jurors. Here's what information these people say they would need to make an informed decision if I am the jury of that case. Definitely, like I'll look at, you know what actually he did in the first place, right? How did it all started? Where did he get the funds from and then how things turn into something bad? Right. What are the decisions made? I'd say I'd need to know a little bit more about crypto and how people actually invest in it. First of all, you need to be acquainted with the basics of how the whole Blockchain system operates. And then I think you need to know some things about finance. At least the jury will be the people that understand the crypto like the basic of it because they choose random people who doesn't understand what they went through and what goes in it. Imagine someone who doesn't know anything about finance and they ask him, is this person guilty or not? And he cannot base his decision on what he knows. And they also weighed in on how fx's implosion has affected the perception of the crypto industry. I'm a little bit what you can say. A little bit scared about, you know, getting a job with a Cryptocurrency company because you never know, like what can happen overnight and, you know, things can change out of the boom. Crypto has been annihilated over the last two years, a year and a half because of the bankruptcies. I was around for the MF global bankruptcy in 2011. This kind of reminds me of it, but it's about 10 times worse. I feel just as if he returns my money and that's how I feel. But still that's not enough people have lost their lives like their whole living. Check out more of our extensive reporting on the SPF trial at coindesk dot com.

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