Sam Bankman-Fried’s Day In Jail Will Come, Predicts Mike Novogratz

Mike Novogratz On Sam Bankman-Fried Getting Jail: The Galaxy Digital CEO said he was surprised to see the FTX CEO running around freely.
By Anvesh Reddy
Mike Novogratz SBF

Mike Novogratz Comment On Sam Bankman-Fried’s Chances Of Getting Jail: The Galaxy Digital CEO said he was surprised to see the FTX CEO running around freely in the Bahamas. Calling FTX’s handling of user funds as fraud, Novogratz said investors in the exchange did not sign up for lending their funds for his personal affairs. Following the news of the crypto exchange’s liquidity issues earlier in November, Galaxy Digital revealed it has exposure to FTX.

The company said its exposure to the troubled exchange was around $76.8 million, it said at the time. However, around $47.5 million of the exposed funds were in the withdrawal process, it said. On the other side, the chances of Sam Bankman-Fried getting jail term will depend on the ongoing investigations in various jurisdictions.

Advertisement
Advertisement

“Running Around The Bahamas”

Novogratz said he was surprised that SBF was running around freely in Bahamas. Speaking to CNBC on Wednesday, the Galaxy CEO said FTX did things with user funds that were illegal. Novogratz compared the SBF situation with a theft case he witnessed in his apartment. He said the police found them within three days and got the culprits arrested, while SBF is roaming freely.

“SBF certainly did things with our coins that were illegal, and he’s running around the Bahamas. When you deposit your dollars on his exchange, they are your coins, and lending them to his family office was not part of the deal. That’s fraud.”

Also Read: FTX Reports $51 Billion Crash In Collateral, Sequoia Apologises Investors

While releasing Galaxy’s third quarter results, Novogratz said the crypto market continues to face headwinds in the macroeconomic front. However, he said his company is working on building for the future state of crypto’s institutional adoption.

Advertisement
Advertisement

Credit To Crypto Market

Meanwhile, Perianne Boring, founder of the Chamber of Digital Commerce, credited the crypto industry for exposing SBF’s fraudulent activities but not the regulators. How could this have happened under the nose of regulators, she questioned. The collapse of SBF’s crypto empire really began when the news of liquidity crunch affected the FTX token (FTT) price. As of writing, FTT price stands at $1.29, down 4.85% in the last 24 hours, according to price tracking platform CoinMarketCap.

Also Read: Binance CEO “CZ” Bullish On Crypto Industry, Claims Stronger Recovery

Advertisement
Anvesh Reddy
Anvesh reports major crypto updates around U.S. regulation and market moving trends. Published over 1400 articles so far on crypto and blockchain. A proud dropout of University of Massachusetts, Lowell. Can be reached at [email protected] or x.com/BitcoinReddy or linkedin.com/in/anveshreddybtc/
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.