How is the case against crypto-cash intermediary Bankman-Fried different from a bank that couldn’t cover a “run on the bank”?
In: 10
“Run on the bank” refers to when many people withdraw their money all at once. Although Bankman-Fried experienced that, it’s not why he’s in trouble. When a run happens, there tends to be an investigation on why it happened, and a check to see if the books are being kept properly. In his case….his books were shady AF. He had lent himself a billion without disclosing it to practically anyone, he’d lied to investors, he had irresponsibly incomplete records, and so on. So yes, there was a sudden rush to pull more cash than his company had on hand, but he’s only in trouble for the assumed crimes he committed to get to that point.
Latest Answers