Deconstructing Crypto Episode 10: SBF, AI-Washing and Major Case Developments

Published Date
Apr 4, 2024
In episode 10 of Deconstructing Crypto, Todd Fishman and Gene Ingoglia review the sentencing of FTX founder Sam Bankman-Fried, discuss the SEC’s settlement with two investment advisors over alleged “AI Washing” as part of a broader regulatory push to increase scrutiny of AI-related statements, and provide an overview of the developments in the SEC’s main crypto enforcement actions.

On March 28, 2024, District Court Judge Lewis Kaplan sentenced Sam Bankman-Fried to a term of 25 years of imprisonment. Among other factors leading to the severity of the sentence, the Judge cited that Bankman-Fried had given false testimony, committed witness tampering, and showed little remorse for his offenses.

In our prior episode, we provided a summary overview of the enforcement and litigation risks posed by the explosion of innovation and investment in artificial intelligence technologies.  On March 18, 2024, the Securities and Exchange Commission, settled with two investment advisers over alleged “AI Washing.” The announcement from SEC Chair Gary Gensler comes as part of a broader regulatory push to increase scrutiny of AI-related statements, and to deter any novel risks posed by machine learning, including risks relating to conflicts of interest, market manipulation, and deception.

Listeners also should be following the major cases involving digital assets including SEC v. Terraform, SEC v. Coinbase, SEC v. Binance, and SEC v. Ripple.

Todd and Gene review the Sam Bankman-Fried sentencing, AI-Washing and major case developments in the latest Deconstructing Crypto episode.  


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