SBF’s Family Releases 64-Page ‘Liquidity Crisis’ Narrative Ahead of Nov 4 Appeal

Sam Bankman-Fried’s mom, Barbara Fried (a former Stanford regulation professor and confederate in her son’s crime), revealed a 64-page doc defending her son’s actions and labeling FTX’s collapse as a liquidity disaster moderately than outright fraud.

The doc is seen by many as half of a bigger, coordinated PR and authorized marketing campaign by the Bankman-Fried household geared toward managing the general public narrative and constructing help forward of upcoming appeals in his case.

Fried’s article additionally assaults the choose, the Justice Division and the chapter crew, claiming they’re biased and misrepresented the information of the case.

Associated: John Deaton Rejects Any SBF Pardon as DOJ and FBI Follow 25-12 months Sentence

Why this narrative marketing campaign issues

Now the query stays whether or not this can be a honest try and appropriate the document or merely a marketing campaign to revive a broken household identify. It is most likely a little bit of each, however on the planet of crypto it is all about the way it seems to the general public.

If individuals begin to see Sam Bankman-Fried (former CEO of FTX) as a ‘misunderstood founder’ moderately than a fraudster, it could lead on others within the trade to take greater dangers and regulators may be capable to goal them extra simply.

And if this marketing campaign does not work (particularly since he is already been discovered responsible), it’s going to ship a robust message that no quantity of media consideration can maintain anybody from being held accountable.

The hazard of distortion

The FTX collapse stays the most important crypto fraud case buyers have seen up to now, and any revision of its story immediately harms on a regular basis buyers within the crypto trade. If SBF is portrayed as a sufferer of circumstance moderately than the primary perpetrator of dishonest, it may change the way in which regulators and buyers view future collapses.

Moreover, associates of the previous FTX CEO have not too long ago orchestrated a sequence of media appearances, social media campaigns and revealed op-eds. All this, along with the efforts of his household, is being performed to redefine his collapse because of poor liquidity administration, and never deliberate legal exercise.

Given the crypto market’s current sensitivity to regulatory developments, this marketing campaign may influence the timing and tone of regulation.

SBF is at the moment serving a 25-year jail sentence, however his enchantment to the U.S. 2nd Circuit continues (Nov. 4), making his household’s try and reshape public notion strategically necessary.

Associated: FTX’s high creditor activist talks about Sam Bankman-Fried’s 25-year conviction