Sam Bankman-Fried Verdict: The Crypto Industry Reacts

With Sam Bankman-Fried’s conviction yesterday on seven counts of fraud in federal court, the long-running FTX saga appears to be nearing a conclusion (though sentencing and several live issues are yet to be finalized fully).

The question now is what the verdict means for the future of the industry? Will it prove a lasting stain on crypto’s reputation, making it impossible for companies to persuade users of the merits of digital assets? Or will it serve as a moment of closure, proof that the legal system, journalism and the industry itself can clean its ship?

CoinDesk reached out to several long-time crypto watchers for comment and received several quotes unsolicited as well. They follow below (we’ll update with more as we receive them).

Paul Brody, head of blockchain at EY:

“It’s a wonderful moment for crypto. Accountability and the sense that bad actors will be punished is important – not just for deterring bad actors but to give confidence to those who are operating with integrity. If you’re investing in a business, you need to know that the competition will be on a level playing field and that integrity is not something that puts you at a competitive disadvantage.”

Noelle Acheson, former head of research at CoinDesk and writer of the “Crypto Is Macro Now” newsletter:

“The verdict came as a huge relief. While it looked increasingly likely as the trial wore on, there was always the outside chance that SBF would yet again embarrass the industry by showing that crypto fraud can be hard to prosecute. That didn’t happen, and the swift and unanimous decision from the jury definitively shows that fraud is fraud, and crypto service providers can and should be held accountable. The closure of the SBF phase should help to show the next wave of investors that crypto markets can be grown up. And hopefully now we can get back to building the capital market infrastructure the ecosystem deserves.”

Sheila Warren, CEO of the Crypto Council for Innovation:

“This case was always about fraud, and this outcome confirms that the jury understood who and what was on trial here.

“The jury heard evidence that Sam Bankman-Fried was out for himself, and that’s reflected in the verdict. This case serves as a reminder that rules that have existed for a long time created a path to…