U.S. Congressman Labels Crypto Industry 'Garden of Snakes'

U.S. Congressman Brad Sherman has likened the industry to a "Garden of snakes," suggesting that there is widespread fraud within the cryptocurrency space. 

The incendiary comments followed the recent conviction of cryptocurrency exchange FTX founder Sam Bankman-Fried, on fraud charges. 

Sherman's words are in line with his previously expressed skepticism toward cryptocurrencies. 

Bankman-Fried found guilty on all counts

Bankman-Fried, the founder of the now-defunct cryptocurrency exchange FTX, has been found guilty on all seven criminal fraud counts brought against him. The dramatic end to a monthlong trial that captivated the financial world saw Bankman-Fried convicted of wire fraud, securities fraud, commodities fraud, and conspiracy to commit money laundering. 

These charges stem from the collapse of FTX and its sister hedge fund, Alameda Research, last year. 

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Prosecutors painted Bankman-Fried as a mastermind of one of the largest financial frauds in U.S. history. 

Bankman-Fried is now facing up to 115 years in prison. His sentencing is set for March 28, 2024.  

Sherman's persistent criticism of crypto

Congressman Sherman's disdain for the cryptocurrency sector is not new. In past statements, including a recent CNBC interview, he has voiced his hopes for the end of digital currencies. In June, he also criticized the verdict in the Ripple case. 

Sherman's critique extends beyond the volatility and security issues often associated with cryptocurrencies. He has also repeatedly questioned their very utility and contribution to the economy. 

The lawmaker has stated the use of cryptocurrencies primarily to evade government oversight and sanctions.