Crypto, Blockchain And The Hyper-Technologization Of Offshore Structures

Structural complexity

On 2 November 2023, Sam Bankman-Fried (SBF), the former billionaire head of the collapsed cryptocurrency exchange FTX Trading Ltd. (FTX), was convicted on seven counts of fraud, conspiracy and money laundering following his arrest in December 2022. In March 2024, SBF was sentence to 25 years imprisonment. He is now appealing both the conviction and sentence.

The structural complexity of the FTX operation, combined with a total lack of corporate controls, left billions of dollars in the hands of SBF and his co-conspirators. It also precipitated the swift collapse of the business and charges of fraud by SBF on a massive scale. FTX was a cryptocurrency exchange created and operated by SBF. Such exchanges operate as a central service which provides lay investors with the ability to invest their money in crypto assets and digital tokens. Their operations are almost entirely online.