'Normalized corruption': RFK Jr. says Sam Bankman-Fried allegedly donating $100M of stolen funds to politicians, having charges dropped is worse than fraud itself. 3 legit ways to own crypto
The collapse of cryptocurrency exchange FTX has led to significant losses for crypto investors. In November, its disgraced former CEO and founder Sam Bankman-Fried was convicted on all seven criminal counts he faced. He is set to be sentenced in March, but not everyone is happy about how things have been handled.
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Federal prosecutors also accused SBF, as he is often called, of donating customer deposits to politicians. However, they have decided against pursuing a second trial on additional charges, including making unlawful campaign contributions. They explained that much of the evidence has already been submitted to the Court during the first trial and also cited "strong public interest in a prompt resolution of this matter."
This decision sparked widespread discussion on social media.
“Sam Bankman-Fried donated $100 million in stolen customer funds to US politicians,” crypto news outlet Watcher Guru wrote in a recent post on X. “Today, the US Government announced they're dropping six charges against SBF and will not prosecute him for a political campaign finance violation.”
The post, featuring a letter from the U.S. Department of Justice to Judge Lewis Kaplan about not proceeding with a second trial, has received 9.7 million views. It also caught the attention of independent presidential candidate Robert F. Kennedy Jr.
“No one is even surprised,” Kennedy said in response. “THAT is a bigger problem than the fraud itself. It shows how normalized corruption has become.”
Despite the FTX fiasco, the high-return potential of cryptocurrencies continues to attract investors. For instance, Bitcoin, the world's most prominent cryptocurrency, skyrocketed 154% in 2023.
The good news? You don’t have to entrust your funds to individuals like SBF to participate in this market. Here’s a look at three ways to gain exposure to crypto more safely.
Buy and store securely
These days many platforms allow individual investors to buy and sell crypto. However, a quick glance at the California government's Crypto Scam Tracker will show you there are many fraudulent websites built for scams. Always make sure you're using a reputable exchange platform to buy any virtual currency. Some exchanges charge up to 4% commission fees for each transaction, so look for apps that charge low or even no commissions.
Experts recommend transfering your assets from your wallet on the exchange to a hardware wallet or a reputable non-custodial software wallet for additional security and control. This way you don't place your trust in the exchange and those running it to store your crypto, in case it ends up like FTX. A hardware wallet, being a physical device, stores your crypto offline, protecting it from online hacking threats. Meanwhile, a non-custodial software wallet gives you complete control over your private keys, while still offering the convenience of digital access. However, no storage method is completely safe and risks still exist.
Crypto ETFs
Exchange-traded funds have risen in popularity in recent years. They trade on stock exchanges, so buying and selling them is very convenient. And now investors can use them to get a piece of the crypto action, too.
For instance, ProShares Bitcoin Strategy ETF (BITO) started trading on NYSE Arca in October 2021, marking the first U.S. bitcoin-linked ETF on the market. The fund, which holds Bitcoin futures contracts, has an expense ratio of 0.95%.
Investors can also consider the Valkyrie Bitcoin Strategy ETF (BTF), which made its debut a few days after BITO. This Nasdaq-listed ETF invests in bitcoin futures contracts and charges an expense ratio of 0.95%.
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Crypto stocks
When companies tie some of their growth to the crypto market, their shares can often move in tandem with the coins.
First, there are crypto miners. The computing power doesn’t come cheap and energy costs can be substantial. But if the price of Bitcoin goes up, miners like Riot Platforms (RIOT) and Marathon Digital Holdings (MARA) are likely to receive increased attention from investors.
Then there are intermediaries like Coinbase Global (COIN). When more people buy, sell and use crypto, these platforms stand to benefit.
Finally, there are companies that simply hold a lot of crypto on their balance sheets.
Case in point: enterprise software technologist MicroStrategy (MSTR). It has a market cap of around $10 billion. Yet its Bitcoin count reached approximately 189,150 as of Dec. 26, 2023, a stockpile worth over $8 billion at the current price.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
