Former FTX CEO Sam Bankman-Fried was sentenced to 25 years in prison for wire fraud and money-laundering. He and his partners created FTX, an exchange that took customer deposits to invest in cryptocurrencies, some of which were funneled to his other company, Alameda Research, for unauthorized purposes. The scam was exposed, leading to the collapse of FTX and losses for customers.

This marks the end of a phase in crypto characterized by get-rich-quick schemes and fraud investigations. The future of crypto may involve more practical applications built on emerging blockchains.

Sam Bankman-Fried gets 25 years in prison for fraud and money laundering at FTX, ordered to pay $11B in forfeiture

Crypto optimists believe that developers will create useful applications on blockchains like Ethereum and Solana, but so far, most applications have been driven by speculation. Blockchain-based startups have yet to achieve significant success or go public.

Bitcoin may continue to serve as an alternative to national currencies for storing and exchanging value, especially in unstable economies. Its underlying value is tied to energy consumption through its proof-of-work model, making it a real asset with tangible value.