FTX Sam Bankman-Fried found guilty of seven charges, sentence pending
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Bankman-Fried is due to be sentenced on March 28, with a second trial for five additional charges due around the same time.
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FTX founder Sam Bankman-Fried arrives for trial at Manhattan Federal Court on March 30, 2023 in New York City, US (AFP)
A New York federal jury delivered a verdict that would most likely land former FTX founder Sam Bankman-Fried decades of prison sentence after being found guilty on seven counts of fraud and conspiracy linked to cryptocurrency exchange and a related hedge fund.
This is the result of more than two weeks of testimony and four hours of deliberations as US Attorney Damian Williams praised the decision in his statement that the government had “no patience” for white-collar crime.
“These players like Sam Bankman-Fried might be new, but this kind of fraud, this kind of corruption, is as old as time,” Williams noted.
The tycoon's ex-girlfriend and the fund’s former chief executive, Caroline Ellison, faced separate charges for alleged role in the notorious scheme and testified against him during his trial.
The MIT graduate has been charged with two charges of wire fraud and six counts of conspiracy, including conspiracy to launder money and commit campaign finance violations. If convicted, he may face up to 115 years in prison.
Read next: US judge revokes bail, orders FTX chief Bankman-Fried back to jail
The 30-year-old crypto tycoon rode a surge in the value of bitcoin and other digital assets to become a multi-billionaire and a powerful political donor in the United States until FTX went bankrupt in early November following a rush of withdrawals. On November 11, the exchange declared bankruptcy.
To proceed or not to proceed
His lead defense attorney, Mark Cohen, expressed being “disappointed” in the verdict, but added, “We respect the jury’s decision.”
“Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him,” he continued.
The former FTX chief had drawn in huge investments from prominent fund managers and venture capitalists. But it all collapsed dramatically when a media report revealed that Alameda's (FTX's sister trading company) balance sheet was heavily built on a token created by FTX with no independent value, exposing Bankman-Fried's companies as being dangerously interlinked.
Bankman-Fried is due to be sentenced on March 28, with a second trial for five additional charges due around the same time.
Meanwhile, the government has until February 1 to decide upon proceeding with the case.
