Bitcoin Surges 19.43% Post SBF Sentencing, Other Assets Plummet

Since the sentencing of former FTX CEO Sam Bankman-Fried (SBF) to 25 years in prison on March 28, 2024, the assets linked to his portfolio have shown mixed performance. The portfolio associated with SBF’s companies, including crypto exchange FTX and Alameda Research, mainly comprised assets such as Bitcoin, Ethereum, Solana, and FTX’s native token, FTT. While SBF may not have personally owned these assets, they were central to his firm’s operations and investment strategies.

Bitcoin (BTC) has emerged as the only asset to post positive returns. On March 28, 2024, Bitcoin traded at $70,744, rising by 19.43% to $84,490. A $1,000 investment in Bitcoin on the day of SBF’s sentencing would now be worth $1,194. Over this period, Bitcoin has undergone notable developments, including being added to the strategic crypto reserve of the U.S. government and hitting a record high above $100,000.

Solana (SOL), once a cornerstone of FTX and Alameda Research’s investment strategy, traded at $189 when Bankman-Fried was sentenced. The collapse of FTX had a massive impact on the decentralized finance asset, which once dropped below $10. As of press time, SOL has decreased to $132, a 30.16% decline. A $1,000 investment in Solana at sentencing would now be worth $698.40.

Ethereum (ETH), trading at $3,562 on March 28, 2024, has fallen to $1,633, a 54.15% drop. Therefore, investors who put $1,000 in the second-ranked digital currency by market cap would now see their investment valued at $458.50. Ethereum has failed to mirror Bitcoin’s performance and has remained mostly suppressed.

FTX’s native token, FTT, is central to the exchange’s operations. It traded at $1.92 on March 28, 2024. As of press time, it has plummeted to $0.86, a 55.21% decrease. To this end, a $1,000 investment in FTT would now be worth $447.90. The token’s collapse largely points to investor reaction to the eroding trust in the exchange after fraud allegations emerged.

Since his imprisonment, the performance of assets tied to SBF’s companies reveals a mixed landscape. A $4,000 investment equally split across these four assets would now be worth approximately $2,799, a 30.02% overall decline. The mixed results highlight the inherent risks and rewards associated with cryptocurrency investments, particularly in a volatile market environment. The performance of these assets underscores the broader impact of SBF's sentencing on the cryptocurrency market, reflecting both the resilience and vulnerability of digital assets in the face of significant market events.