• US Lawmaker Brad Sherman recently labeled the crypto world a “garden of snakes.”
• His criticism was fueled by the recent conviction of Sam Bankman-Fried by a New York Jury.

U.S. Congressman Brad Sherman has likened the crypto industry to a “Garden of Snakes,” highlighting concerns about widespread fraud within the space. His remarks come on the heels of the conviction of crypto exchange FTX founder Sam Bankman-Fried on fraud charges, further fueling the debate over the industry’s legitimacy.

Congressman on Crypto: a Long-standing Skepticism

Taking to the social media platform X, Sherman stated, “Some will say that Sam Bankman-Fried is just one big snake in a crypto Garden of Eden. The fact is, crypto is a Garden of snakes. We have found many other snakes in the crypto garden, and we will find many more.”

It is important to note that Congressman Brad Sherman’s disdain for cryptocurrencies is not a recent development. His skepticism regarding digital assets has been a recurring theme throughout his political career. 

In a recent CNBC interview, he reiterated his hopes for the end of digital currencies and criticized the verdict in the Ripple vs US SEC case. Sherman’s critique of the crypto sector goes beyond concerns about volatility and security issues. He has repeatedly questioned their utility and impact on the economy.

One of the key concerns that Congressman Sherman has voiced is the use of cryptocurrencies for evading government oversight and sanctions. This viewpoint has made him a vocal opponent of digital assets, arguing that they pose a threat to the traditional financial system and the government’s ability to regulate it.

It is worth noting that not all members of Congress share Sherman’s views on cryptocurrencies. Some legislators have been actively working to create a regulatory framework that allows for the responsible development of the industry.

The Conviction of Sam Bankman-Fried

The recent conviction of Sam Bankman-Fried, the founder of the now-defunct FTX Derivatives exchange, has added weight to Congressman Sherman’s arguments. Bankman-Fried faced a month-long trial that ultimately ended with his conviction on all seven criminal fraud counts brought against him. These charges include wire fraud, securities fraud, commodities fraud, and conspiracy to commit money laundering.

The case against Bankman-Fried stems from the collapse of FTX and its sister hedge fund, Alameda Research in November last year. Prosecutors portrayed Bankman-Fried as the mastermind behind one of the largest financial frauds in U.S. history, which led to significant financial losses for many investors and participants in the crypto market.

The potential consequences for Bankman-Fried are severe, with the possibility of a sentence of up to 115 years in prison. His sentencing is scheduled for March 28, 2024, which marks a critical moment in this high-profile case.

The conviction of Sam Bankman-Fried and the strong words from Congressman Sherman have reignited the debate surrounding the crypto industry’s legitimacy and transparency. While the industry has made significant strides in improving security and regulation over the years, incidents like this can still cast a shadow over its reputation.