The world has seen a lot of technological advances and among which is cryptocurrency. Many have rushed to invest. Envisioning great profits ahead.FTX founder, Sam Bankman-Fried is now seen as a US Crypto fraud set to face a 115-year sentence.
The story so far: In 2019, Bankman-Fried and his colleague Gary Wang founded FTX Trading Ltd. The company by then operated a cryptocurrency exchange and crypto hedge fund.
Since the world seems to be in a frenzy to invest in anything crypto, a number of people joined FTX. In fact, by the year 2021, the company boosted a massive one million users.
However, not all that glitters is gold. News reaching Brayz Media desk shows that the 30-year-old has been accused of embezzling billions of dollars from investors.FTX is now a bankrupt company.
FTX is now a bankrupt company.
On Tuesday, Bankman-Fried appearing in court pleaded not guilty. This is a contrast to what some of his work colleagues say. They actually attest to the fact that there was embezzlement and defrauding of investors.
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The actual and final hearing of the case is set for October 2 this year. If proven guilty, Bankman-Fried could face 115 years in prison for committing fraud and conspiracy to commit money laundering.
Crypto Fraud in Uganda
In February 2022 Uganda’s Criminal Investigations Directorate ( CID ) arrested one John Mwanutsya for a case similar to Bankman-Fried’s. Mwanutsya, like Bankman-Fried, defrauded Ugandans of over Shs 3 Billion.
Apparently, Mwanutsya, the director of a crypto firm known as Crypto Bridge African Limited recruited and sold virtual shares to members. These digital transactions happened between 2018 – 2020.
As you are already aware of the crypto frenzy, a number of people joined in. They invested and waited for profits only to hear that the company had closed permanently.
A number of such individuals and companies are still around. The CID Spokesperson by then, Charles Twine advised Ugandans that they should know that transactions of cryptocurrency in Uganda are not regulated by any institution or any legal framework.
You can also report Crypto Fraud by Visiting the Federal Trade Commission.
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