In a high-profile criminal case, a jury of nine women and three men unanimously found FTX founder Sam Bankman-Fried guilty on seven counts of fraud and conspiracy.
Co-Author: Hope C
In a high-profile criminal case that gripped the crypto community, a jury of nine women and three men unanimously found FTX founder Sam Bankman-Fried guilty on all seven counts of fraud and conspiracy after just four hours of deliberation.
The swift conviction follows allegations that Bankman-Fried engineered a massive fraudulent scheme and misappropriated billions in customer funds through his trading firm Alameda Research. Prosecutors stated that Bankman-Fried stole $10 billion in customer deposits to Alameda to make lavish real estate purchases, donate to political campaigns, and cover trading losses as crypto prices plunged in 2022.
U.S. Attorney Damian Williams called Bankman-Fried's crimes "a multibillion-dollar scheme designed to make him the king of crypto" and one of the biggest financial frauds in American history.
The charges carry a maximum 115-year prison sentence. While the jury deliberated the charges of wire fraud, securities fraud, commodities fraud and money laundering conspiracy, U.S. District Judge Lewis Kaplan will ultimately decide Bankman-Fried's punishment at a sentencing hearing on March 28, 2024.
Bankman-Fried's defense counsel expressed disappointment with the guilty verdict on all counts, stating that their client maintains his innocence and will continue fighting the allegations.
Throughout the month-long trial, former FTX insiders including Caroline Ellison, Gary Wang and Nishad Singh testified for the prosecution after pleading guilty to charges related to their involvement in the FTX collapse. Their testimony painted a damning picture of Bankman-Fried's role in allegedly misusing customer funds and misleading investors while concealing massive losses.
The case has drawn comparisons to the prosecution of Theranos founder Elizabeth Holmes, who was convicted on fraud charges. Legal experts state that Bankman-Fried faced long odds in defending himself against the testimony of former allies. His decision to take the stand in his own defense was seen as a last resort to counter the narrative presented by the prosecution.
Ultimately the jury sided unequivocally with the government's case, issuing a sweeping repudiation of Bankman-Fried's claims that he did not intentionally commit fraud. The outcome deals a harsh blow to the fallen crypto billionaire once hailed as an industry savior. Though his counsel plans to appeal, Bankman-Fried faces the stark likelihood of spending decades behind bars for orchestrating one of the largest financial frauds in US history.
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