For the past year, the crypto industry has been working overtime to try to crawl out from the shadow of FTX’s implosion.
Its bankruptcy became a financial and PR nightmare for an industry that has struggled to shake its association with fraud.
Outwardly, many crypto advocates say they wanted to see Sam Bankman-Fried prosecuted, arguing his firm was the bad apple sullying the industry.
But the headlines are hardly a PR win for crypto firms. While the industry has had some recent regulatory wins in court, it remains a largely unknown and haphazardly regulated space that mainstream investors are wary of.
Now, add Bankman-Fried to a growing list of people who made a lot of money in crypto before losing it (or at least be indicted for it) in dramatic fashion: Heather Morgan, aka Razzlekhan, and Ilya Lichtenstein; Celsius’s Alex Mashinsky; or Karl Greenwood, one of the founders of the OneCoin scheme who was sentenced to 20 years in prison.