Congressman Brad Sherman of the United States of America has compared the cryptocurrency industry to a “Garden of Snakes,” implying that fraud is pervasive in the sector.
The incendiary remarks followed the recent conviction on fraud charges of Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX.
Sherman’s statement is consistent with his prior stance of doubt regarding cryptocurrencies. All seven criminal fraud charges against Bankman-Fried, the founder of the defunct cryptocurrency exchange FTX, have been successfully resolved in his favor.
Bankman-Fried was convicted of wire fraud, securities fraud, commodities fraud, and conspiracy to launder money at the triumphant conclusion of a month-long trial that engrossed the financial community.
Due to the failure of FTX and its sister hedge fund, Alameda Research, a year ago, these charges have been levied.
Bankman-Fried was indicted by prosecutors as the mastermind behind one of the most massive financial frauds in U.S. history.
At this time, Bankman-Fried is threatened with 115 years in prison. He is scheduled to be sentenced on March 28, 2024.
It is not new for Congressman Sherman to harbor contempt for the cryptocurrency industry. He has expressed eagerness for the demise of digital currencies in previous statements and a recent CNBC interview.
Additionally, he criticized the verdict in the Ripple case in June.
Sherman’s critique transcends the mere mention of security concerns and volatility frequently linked to cryptocurrencies. In addition, he has consistently questioned their utility and economic contribution.
The lawmaker has asserted that the primary purpose of utilizing cryptocurrencies is to elude government oversight and sanctions.