FTX's Sam Bankman-Fried Found Guilty of All 7 Counts of Criminal Charges
After a five-week trial, a New York jury found FTX's Founder and former CEO, Sam Bankman-Fried, guilty of all seven counts of fraud, conspiracy, and money laundering. The sentencing for this crime is yet to be scheduled,...
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After a five-week trial, a New York jury found FTX's Founder and former CEO, Sam Bankman-Fried, guilty of all seven counts of fraud, conspiracy, and money laundering. The sentencing for this crime is yet to be scheduled, tentatively set for March 28, 2024.
"The verdict unanimous, your honor," noted a message from the 12-member jury as they reached the guilty verdict.
Guilty of Seven Counts of Charges
Once hailed as a 'messiah' in the crypto industry, Bankman-Fried has been found guilty of two counts of wire fraud, two counts of conspiracy to commit wire fraud, and one count of conspiracy to commit money laundering. Each of these offenses carries a maximum sentence of 20 years. He was also convicted of one count of conspiracy to commit commodities fraud and one count of conspiracy to commit securities fraud, each with a maximum sentence of five years.
In total, he could potentially face a maximum prison time of 115 years.
The courtroom sketch artist in the Sam Bankman Fried trial might be the most generous person alive pic.twitter.com/8l7Nn0zCN2
— Tom Breen (@TJBreen) October 30, 2023"Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history," said US Attorney Damian Williams outside the court after the American jury revealed the guilty verdict. "This kind of fraud, this kind of corruption, is as old as time. We have no patience for it."
JUST IN: 🇺🇸 US Attorney says Sam Bankman-Fried perpetrated one of the biggest financial crimes in US history. pic.twitter.com/CLzVhiALUg
— Watcher.Guru (@WatcherGuru) November 3, 2023Signaling an appeal, Bankman-Fried's attorney stated: "We respect the jury's decision. But we are very disappointed with the result. Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him."
Fall of a Crypto Moghul
Bankman-Fried was once regarded as one of the prominent faces of the crypto industry during the heyday of his now-bankrupt exchange, FTX. Another prized entity of his collapsed crypto empire was Alameda Research, which he founded before FTX. However, all that crumbled overnight when his shady business practices surfaced last year in November of last year.
Prosecutors accused him of orchestrating a scheme to embezzle approximately $8 billion in customer funds. These ill-gotten gains were allegedly used for purchasing real estate, making political contributions, and financing pet charitable projects.
While Bankman-Fried faced the criminal trial, his other top associates pled guilty to the charges against them and cooperated with the prosecutors in the investigation. Alameda's former CEO, Caroline Ellison, and two high-ranking former executives from FTX, Nishad Singh and Gary Wang, also took the witness stand to testify against their former boss.
This article was written by Arnab Shome at www.financemagnates.com.Why this matters
This cryptocurrency story adds another data point to the current market tape and is useful when read alongside nearby source coverage.
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