New York – Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was found guilty on all counts in his fraud trial related to FTX’s spectacular collapse.
After 15 days of intense trial and only 4.5 hours of jury deliberation, Bankman-Fried was convicted on 7 counts of conspiracy and fraud. The charges carry a maximum sentence of up to 110 years in prison.
Keypoints
- Sam Bankman-Fried was found guilty on all 7 counts of fraud and conspiracy related to the collapse of his cryptocurrency exchange FTX.
- The charges include wire fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. He faces up to 110 years in prison.
- Prosecutors argued that FTX was a fraud “from the start” and Bankman-Fried misappropriated billions in customer funds.
- Defense claimed Bankman-Fried failed honestly at a high-risk business but did not commit fraud.
- Multiple former FTX executives like Caroline Ellison testified against Bankman-Fried as star witnesses.
- Ellison said Bankman-Fried directed giving special privileges to Alameda that allowed it to misuse FTX customer funds.
- The verdict deals a blow to the embattled crypto industry that Bankman-Fried was a major figure in.
- Bankman-Fried will be sentenced on March 28, 2024 and taken into custody until then after being out on bail earlier.
Federal prosecutors provided extensive evidence that Bankman-Fried knowingly misled investors and misappropriated customer funds from FTX to prop up his trading firm Alameda Research.
Several former close associates like FTX co-founder Gary Wang and Alameda CEO Caroline Ellison testified that Bankman-Fried was fully aware of and directed moves to siphon FTX customer assets into Alameda. This ultimately left FTX with an $8 billion hole when it collapsed in November 2022.
The prosecution argued this demonstrated Bankman-Fried committed fraud from FTX’s inception in 2019, despite promoting it as a safe crypto trading platform.
Bankman-Fried himself testified in his defense, claiming he failed honestly in a risky business but did not intentionally commit fraud. However, the jury firmly rejected this narrative after deliberating less than 5 hours and finding him guilty on all counts.
The verdict represents a stunning downfall for the once high-flying crypto billionaire hailed as the “JP Morgan” of digital assets. It also deals a reputational blow to the wider crypto industry that Bankman-Fried was an influential ambassador for before the FTX implosion.
Bankman-Fried is currently in federal custody pending sentencing on March 28, 2024, where he is expected to receive a lengthy prison term. The saga concludes an epic unraveling of his empire which led to billions in investor losses.
