Recently, cryptocurrency’s most infamous character Sam Bankman-Fried was released from federal custody after being extradited from the Bahamas to America.
The former CEO paid a heft bail in order to stay out of jail. Bankman-Fried confirmed a $250 million bail, with his parent’s home as insurance.
Now the SBF will get to remain free while he awaits trial for eight criminal charges of fraud, in addition to civil lawsuits from the SEC.
The news of SBF’s bailout affected the entire cryptocurrency community. One of which included the newly released “SBF Goes To Prison” token.
SBFP Down 5%
SBF Goes To Prison, a cryptocurrency created by the community in order to display the common sentiment of wishing Sam Bankman-Fried faces legal repercussions for his alleged fraud, went down by 5% after the news of the bailout came out.
As reported on December 13, SBFP surged by nearly 300% after Bankman-Fried was arrested in the Bahamas. After the dust settled, the token’s value dropped “back to normal”.
However, what investors who purchase the token are looking for is not necessarily simply a sudden growth in value.
In order to bet on the outcome of SBF’s legal battles, the developers who created SBFP intend on burning half of the cryptocurrency’s supply once a potential jail sentence is confirmed. The token-burning process would then significantly raise the price of the asset.
In the case of Bankman-Fried being found not guilty, the team behind SBFP will then airdrop half of the supply, causing a significant increase in liquidity.
Despite being freed from prison, the now disgraced CEO has very serious legal battles ahead of him. And from the looks of it, SBF will be fighting an uphill battle in order to prove his innocence.
The main business partners of SBF have already pled guilty to fraud charges and are collaborating with the investigations. Meanwhile, Bankman-Fried’s next court date is scheduled for January 3rd, and depending on the outcome, SBFP could through another significant price change.
