HK Highlights 1 - Digital Magazine Version - Flipbook - Page 12
CRYPTO CONSEQUENCES
Following the 2022 bankruptcy of
FTX – a cryptocurrency brokerage and
investment 昀椀rm that was formerly the
sector’s leading light – and a subsequent
investigation into the 昀椀rm’s activities, Sam
Bankman-Fried, the 昀椀rm’s founder, was
convicted on numerous counts in autumn
2023. He will be sentenced in March
2024, to as many as 100 years in prison.
Investors, including major VC 昀椀rms,
昀椀nanciers and celebrities acknowledge
that they were asleep at the wheel, and
heedless as wide-ranging conduct and
prudential issues unfolded. Violations
included using client funds for reckless
proprietary investing and making
politically damaging donations to
Democratic campaigns.
GRC professionals and board directors
across Fintech and traditional 昀椀nance will
no doubt be watching events unfold and
working to ensure that such issues are
not on display at their companies today,
given the stark consequences of riling
resurgent regulators. Hopes for a spot
Bitcoin ETF have been realised in early
2024, which seems likely to bring
Cryptomania roaring back in a big way.