After a month-long New York trial, crypto currency entrepreneur Sam Bankman-Fried was found guilty of fraud and money laundering.
The jury decided after five hours.
It caps a spectacular collapse for the 31-year-old “King of Crypto” billionaire, who faces decades in prison. FTX‘s bankruptcy led to Bankman-Fried’s arrest last year. Next March 28 is his sentence.
In November 2018, the $32bn (£26bn) cryptocurrency exchange FTX went insolvent, losing $8bn in customer funds. “Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history—a multibillion-dollar scheme to make him the king of crypto,” US attorney Damian Williams said after the verdict.
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He said this issue has always been lying, cheating, and stealing, which we no longer allow. As the jury read the decision, Bankman-Fried stood with his hands clasped while his parents sat with their heads in their hands. The jury found him guilty of defrauding investors and lenders and stealing billions, bankrupting FTX. He faced seven fraud and money laundering charges.
He disputed all claims, saying he made mistakes but acted honestly. Mark Cohen, Bankman-Fried’s attorney, said, “We respect the jury’s verdict. Our disappointment is huge.” Bankman-Fried denies and will defend the claims “said.
His spokesperson dismissed Bankman-Fried’s BBC ruling appeal. Three former close friends and coworkers, including his ex-girlfriend Caroline Ellison, pleaded guilty and testified against him to lower their sentences.
Everyone was misled by Sam Bankman-Fried’s big bet. “The King of Cryptocurrency cost me £1.7 million.” The prosecution believes Bankman-Fried’s cryptocurrency trading firm, Alameda Research, accepted FTX money when banks declined to open accounts. Despite his promises, Bankman-Fried returned Alameda lenders, bought property, invested, and donated to politics. Five Bankman-Fried offenses carry 20 years, two five.
Crypto King Bankman-Fried might receive a 110-year sentence:
He served seven fraud and conspiracy sentences. The corporation filed for bankruptcy in November 2022 after billions in net withdrawals. Panic ensued as Binance’s CEO announced FTT’s sale “due to recent revelations that have come to light.”
“I was worried,” Bankman-Fried said Monday. Expect bankruptcies and cash shortages. After Sam Fried tweeted “fine,” FTX assets were withdrawn.” The Bahamas arrested Bankman-Fried in December 2022 on US allegations.
Bankman-Fried was convicted for the FTX billion theft, He stole from FTX’s sister hedge fund, Alameda Research, which housed client assets in a lender-financed bank account. In 2020, Bankman-Fried knew Alameda possessed FTX customer assets but did not protect them. He found Alameda owed FTX $8 billion in fall 2022.
Added expenses Bankman-Fried received a conviction for money laundering and FTX investment fraud.His trial may continue despite a 110-year sentence. The judge ordered prosecutors to decide by February 1 whether to try five more charges in March.
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