When FTX said it was bankrupt in late 2022, Bitcoin prices flash-crashed, sinking to as low as $15,600.
However, Solana (SOL) faced the full wrath of the market, dropping to as low as $8. At its 2021 peak, the coin soared to as high as $260.
Therefore, the crash to $8 means a near 99% sell-off, one of the most worrying for a coin in the top 10.
The good news is that the FTX collapse, which unfortunately saw people lose their life savings, also marked the end of the 2022 bear run.
SOL, BTC, and other top altcoins have steadily recovered.
What’s more?
Sam Bankman-Fried, the CEO of the defunct exchange, is serving 25 years in prison.
And,
After government intervention and high-profile arrests, victims will be compensated in the course of the year.
Caroline Ellison Sentenced To Two Years In Prison
Among those arrested include Caroline Ellison, the former CEO of Alameda Research, the venture wing of FTX.
She collaborated with law enforcement and spilled secrets about how the offshore exchange, FTX, operated.
By working closely with investigators, it was possible to indict Sam Bankman-Fried and recover customer assets.
Ellison will now serve 24 months in prison, primarily for her role in the FTX collapse.
Additionally, she will have to give up $11 billion.
While this is a win for FTX victims and crypto as a whole, others are concerned that this is a lenient ruling, raising questions about the consequences of white-collar crimes, especially in crypto, where billions are lost every year due to, among others, hacking and scams.
According to reports, prosecutors saw it fit for her to receive a more lenient sentence because of her assistance during investigations.
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Is The Sentencing Fair?
However, for critics, it could have been worse because even after agreeing to charge back in December, her lawyers and the federal Probation Department argued that she shouldn’t be sent to prison.
While making the ruling, Judge Lewis Kaplan acknowledged her crucial help. Still, he saw it fit to send the former Alameda Research executive to prison to deter future crimes.
Ellison will, therefore, serve her time, but there are far more important questions, especially revolving around how the United States justice system approaches white-collar crimes in crypto.
Billions have been lost through hacks and mismanagement, like in the FTX case.
For this reason, it only serves the DoJ and others to make harsher rulings now that crypto fraud cases, running into billions, cause significant harm to investors, even denting the sphere’s reputation.
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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