Cramer stressed that anyone who fraudulently mixes funds should go to jail, whether they did it intentionally or not. Jake Chervinsky said Caroline Ellison is crucial in the FTX case, but no one knows what she is doing.
Jim Cramer, a former hedge fund manager, and TV host commented on the collapse of FTX and Sam Bankman-Fried. He said the former CEO of the bankrupt exchange committed illegal fraud even though he did not try to do so.
The expert noted that Bankman-Fried did not keep records, so he admits to illegality, even though he said not to intend to.
Cramer said it was irrelevant whether Bankman-Fried was a good person since the facts were indisputable. He pointed out that he knew friendly people who had spent a lot of time in prison for mistakes they made.
The TV presenter described Bankman-Fried as an obsessive liar and scammer. He stated that the former CEO of FTX admitted to inappropriately mixing accounts and later said he felt wrong about it.
In addition, he highlighted that fraudulently mixing funds implies that the person responsible must go to jail, regardless of whether he is lying or being honest.
The former hedge fund manager concluded that thieves never say to be sorry about committing a crime. However, he believes this is irrelevant because his behavior affected many investors.
After FTX filed for bankruptcy on November 11th, Bankman-Fried stepped down as CEO. About 1 million customers and investors lost billions of US dollars due to the collapse of the exchange.
A court is investigating the bankrupt company for mismanaging the funds of customers. John Ray, the new CEO of FTX, said he had never seen such a complete failure of corporate controls.
Nobody Knows of the Former CEO of Alameda Research
Caroline Ellison, the former CEO of Alameda Research, was reportedly in New York recently. The crypto community has begun to speculate about what she might do there.
While Bankman-Fried has spoken publicly, the crypto community and lawmakers want to know about the alleged fraud involving Alameda Research.
Maxine Waters, chairwoman of the US House Financial Services Committee, urged Bankman-Fried to appear at a hearing on December 13th. However, he declined the invitation to testify, saying he first needed to learn and review what happened.
Many reacted to those words, criticizing him for stating in various virtual media that he has made inadvertent accounting errors.
Jake Chervinsky, the head of policy for the Blockchain Association and US Attorney, said Caroline Ellison was another piece of this story. No one knows what she may be doing now as Bankman-Fried makes public statements.
The collapse of FTX and its effect on the crypto market has led regulators to exercise tighter measures. Of course, the victims of that event are the ones criticizing the former CEO the most on social media.
Meanwhile, Bitcoin is trading at around USD 17,298 and has accumulated a 5.1% gain over the last week. While its trading volume is above USD 22.41 billion, its market capitalization is about USD 332.55 billion, according to CoinGecko.
By Alexander Salazar
