FTX Adds a Complex Chapter to the Financial-Fraud History Books

When former crypto titan Sam Bankman-Fried was convicted of seven counts of fraud and conspiracy on Nov. 2, US Attorney Damian Williams called the case “one of the biggest financial frauds in American history.”

While that’s undoubtedly true based on the dollar figures involved, academics say the scandal’s legacy likely will be more complicated than relatively straightforward frauds like Bernie Madoff’s infamous Ponzi scheme or the crimes committed by Elizabeth Holmes at her blood-testing company, Theranos Inc. That’s because the rise and fall of FTX isn’t just a story about the misdeeds of one person, but rather a broader tale ...