Remember FTX founder Sam Bankman-Fried’s fraud case?
A jury of twelve found him guilty of all seven criminal charges, including:
- The conspiracy to commit money laundering
- The conspiracy to commit securities and commodities fraud and…
- The conspiracy to commit wire fraud against FTX customers & Alameda lenders.
The statutory maximum sentence for these crimes is 115 years. And unless his convictions are overturned on appeal, Bankman-Fried’s prison term will last a life time.
U.S. District Judge Lewis Kaplan may show some leniency during his sentencing in March 2024. But Bankman-Fried’s decision to testify — which already failed him — could hurt him if the judge concludes he repeatedly lied on the witness stand.
Crypto critics use the case as further proof of the industry’s susceptibility to fraud. However, the verdict and the heightened regulatory scrutiny could help the industry gain investor confidence, and pave the way for transparent and compliant businesses to lead.
The good news is if you have money in crypto, or are looking to get into the asset class, this story couldn’t have come at a better time because large institutions such as Blackrock have applied for a spot Bitcoin ETF. This allows conservative clients to benefit from Bitcoin’s price movements without direct exposure to cryptocurrency volatility.
Now, it’s likely that new institutional money from Blackrock and others will push crypto assets higher in the months ahead. Full disclosure: I don’t touch crypto because it’s too volatile for me. But if you want to speculate (and potentially pocket significant profits should the SEC approve Blackrock’s application for a Spot Bitcoin ETF anytime soon)…
I won’t discourage you from allocating a small portion of your portfolio to cryptos.
The asset is in a favorable pricing territory so you might be able to buy at bargain prices. If you’re unsure what the best time to buy crypto is, prices are usually low during weekends or by month end when people sell their cryptocurrency to pay bills and rent.
At the end of the day, it doesn’t matter if you trade Bitcoin, ETH, or oil stocks. What counts is having a reliable strategy that puts money in your pocket ever month regardless of market conditions. And if you don’t have that yet, you may never see the consistent, above-average monthly returns you need to reach your desired level of personal wealth.
But that doesn’t have to be your story.
If you need help, see my BEP strategy for reliable cash flow in this market.