Sam Bankman-Fried, founder of the world’s biggest cryptocurrency exchange, has been found guilty of fraud and money laundering at the end of a month-long trial in New York.
He was accused of lying to investors and customers and stealing billions of dollars from FTX, which went bankrupt in November 2022. He now faces up to 115 years in prison. The jury delivered its verdict after less than five hours of deliberations. His sentencing has been set for 28th March 2024.
Month long trial
The verdict was delivered after a month-long trial that saw three of his former associates, including his ex-girlfriend, testify against him as part of a plea deal. They revealed that Bankman-Fried used customer deposits from FTX to fund his other company, Alameda Research, as well as to buy property and make political donations. He denied the charges and claimed that he acted in good faith and made mistakes due to being overwhelmed by the rapid growth of his businesses.
It concludes a dramatic fall from grace for the 31-year-old former billionaire and one of the most public faces of the crypto industry.
The case has been seen as a major blow to the crypto industry, which has been struggling to recover from the market crash and regulatory scrutiny that followed the FTX collapse. Bankman-Fried was once one of the most prominent and influential figures in the sector, known for his philanthropy and crypto industry innovation.
His downfall has been described as the industry’s greatest cautionary tale.
Verdict
‘Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history – a multibillion-dollar scheme designed to make him the king of crypto’, U.S. attorney Damian Williams said in a statement after the verdict. ‘This case has always been about lying, cheating and stealing, and we have no patience for it’.
Prosecutors had accused Bankman-Fried of lying to investors and lenders and stealing billions of dollars from cryptocurrency exchange FTX, helping to precipitate its collapse. They charged him with seven counts of fraud and money laundering.
He had pleaded not guilty to all the charges, maintaining that, while he had made mistakes, he had acted in good faith.
After the verdict Bankman-Fried’s lawyer Mark Cohen said: ‘We respect the jury’s decision. But we are very disappointed with the result’.
Mr Bankman-Fried reportedly maintains his innocence and will continue to vigorously fight the charges against him.
He now faces up to 115 years in prison.