FTX founder Sam Bankman-Fried found guilty on all counts of fraud, conspiracy, and money laundering after highly publicized trial
Sam Bankman-Fried, the former cryptocurrency billionaire and co-founder of FTX, has been convicted on seven counts including wire fraud conspiracy, wire fraud, conspiracy to commit money laundering, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud. These charges carry maximum sentences ranging from five to 20 years in prison. U.S. Attorney Damian Williams referred to Bankman-Fried’s actions as “one of the biggest frauds in American history.”
The collapse of FTX, Bankman-Fried’s crypto exchange, last year led to investigations which uncovered an $8 billion shortfall in funds. It was alleged that Bankman-Fried had used customer money to support his failing hedge fund, Alameda Research. Bankman-Fried has consistently maintained his innocence and plans to continue fighting the charges.
Bankman-Fried was accused of misappropriating funds for personal use, including real estate purchases and political contributions. The collapse of FTX had a significant impact on the crypto industry, resulting in the loss of billions of dollars for clients of other major industry players.
The jury delivered the verdict as Bankman-Fried stood motionless, with his parents in the courtroom. Natalie Tien, a former FTX employee, described the trial as cathartic, as she and others experienced significant financial losses due to the collapse of Bankman-Fried’s empire.
The defense attempted to portray Bankman-Fried as a math enthusiast who made poor management decisions but did not engage in criminal activity. Despite this argument, Bankman-Fried’s own testimony, in which he claimed not to remember key details, was detrimental to his case. The judge, Lewis Kaplan, will determine Bankman-Fried’s sentence, which could be up to 110 years in prison.
The next trial in the United States vs. Sam Bankman-Fried saga is scheduled for March 11, 2024, where additional charges will be addressed.
This trial comes almost a year after FTX ceased allowing customer withdrawals, marking the beginning of Bankman-Fried’s downfall.
