Sam “SBF” Bankman-Fried, the first person associated with FTX and Alameda Research to be connected to prison time following the collapse of the exchange in November 2022, has been sentenced by Judge Lewis Kaplan of the United States District Court for the Southern District of New York. Bankman-Fried received a total of 25 years in prison after being convicted on seven felony charges. Mark Bini, a former assistant U.S. Attorney, stated that Judge Kaplan considered various factors, including the seriousness of the crime and Bankman-Fried’s dishonesty and witness tampering, when determining the sentence. Bini also noted that although the sentence was less than the prosecutors’ request of 40-50 years, it is still a significant punishment that sends a message about the consequences of crypto-related crimes.
In the same case, four other individuals associated with FTX and Alameda, namely Gary Wang, Caroline Ellison, Nishad Singh, and Ryan Salame, pleaded guilty and made deals. Salame, the former co-CEO of FTX Digital Markets, did not testify at Bankman-Fried’s trial and is expected to be sentenced on May 1.
Following the announcement of Bankman-Fried’s sentence in a New York courtroom, crypto users took to social media to express their opinions. Many believed that 25 years in prison was not enough considering that longer sentences are given for less severe crimes.
In other news, the financial regulator of the Philippines has decided to block local user access to Binance, the world’s largest cryptocurrency exchange. The Securities and Exchange Commission (SEC) of the Philippines cited concerns over Binance’s unlicensed operations in the country as the reason for the ban. The SEC received assistance from the National Telecommunication Commission to block access to Binance’s website and trading platform. The SEC alleges that Binance offers investment products without the required licenses, violating the Securities Regulation Code. The ban will take effect within three months to allow investors to exit their positions held through Binance.
Furthermore, the National Data Protection Commission (CNPD) of Portugal has announced a temporary limitation on Worldcoin’s biometric data collection through its Orb devices. The CNPD made this decision to protect the rights of its citizens, particularly minors, after receiving reports of data collection from minors without proper authorization from parents or legal authorities. The limitation will be in effect until the conclusion of an investigation.
In a recent court decision, Coinbase Wallet emerged victorious over the Securities and Exchange Commission (SEC). U.S. District Judge Katherine Failla dismissed allegations against Coinbase Wallet, considering it a win for self-custody wallets and decentralized finance (DeFi) apps. The judge ruled that the SEC had “sufficiently pleaded” that Coinbase was unlicensed and its crypto staking offering was unregistered securities. However, she also determined that the SEC failed to provide evidence that Coinbase conducted brokerage activity through Coinbase Wallet, the self-custody crypto wallet app that grants users full control of their assets. This decision is being celebrated by crypto lawyers as a positive outcome for self-custody wallets and DeFi apps.