Sam Bankman-Fried, the founder of the failed crypto exchange FTX, was sentenced to 25 years in prison and ordered to repay over $11 billion for defrauding customers and investors. Zach Bruch, one of the largest individual FTX creditors, is working with the US Department of Justice to recoup the lost funds. The DOJ-appointed creditor committee typically consists of people with the largest unsecured claims against the debtor, in this case, FTX. Bruch also recently launched a startup crypto casino called MyPrize, valued at $140 million, with investments from various firms.
When the collapse of FTX occurred, Bruch sprang into action to try to recover the lost funds. He was alerted to withdrawal problems on the exchange just after undergoing a root canal procedure. Bruch knew the risks involved in trading and understood the importance of moving forward to ensure the best recovery possible for all creditors. He emphasizes that every customer who suffered losses on the exchange should be reimbursed fully, although the emotional toll cannot be restored.
Bruch believes that the crypto market is poised for continued growth, with Bitcoin recently surpassing $70,000. He sees a bright future for the industry and expects more participation from people recognizing the value of crypto assets. Bruch’s new venture, MyPrize, a crypto casino, aims to capitalize on the trillion-dollar gambling market. Drawing on his experience in risk management and compliance from the crypto industry, he plans to navigate the challenges in online gambling and bring a unique product to the market.
Meanwhile, the latest US inflation report shows a 2.5% increase in prices, driven by a surge in energy prices. Despite the rise, Federal Reserve Chair Jerome Powell remains unworried, stating that the data aligns with the central bank’s forecasts. The Fed intends to maintain its current restrictive stance on interest rates to ensure sustainable inflation. Fed officials anticipate three rate cuts this year, with the first likely to occur in June. Central bankers suggest that reaching the 2% inflation target will be a gradual process and are prepared for a bumpy path ahead.
In Russia, six journalists were arrested within hours of each other, including Antonina Favorskaya, who covered Alexey Navalny, the late Russian opposition leader. Favorskaya faces charges of extremist activities due to her reporting on Navalny. American journalist Evan Gershkovich also marked one year in detention in Russia after being charged with espionage, a claim denied by Gershkovich, his employer, and the US government. The Russian government has yet to provide evidence to support the allegations against Gershkovich, a concerning trend for media freedom in the country.
