FTX’s Sam Bankman-Fried Found Guilty Of All Seven Fraud Charges

A New York jury found Sam Bankman-Fried, the founder and former CEO of FTX exchange and Alameda Research, guilty of all seven counts of conspiracy, money laundering, and fraud. It was announced Thursday, following a five-week trial that thoroughly investigated the collapse of one of the largest crypto exchanges and its affiliated trading firm, which occurred almost a year ago. 

US District Judge Lewis Kaplan stated that Bankman-Fried will be sentenced on March 28, 2024. Government prosecutors will recommend a sentence, but Judge Kaplan will make the final decision. He could spend decades in prison (theoretically up to 115 years). The jury reached its verdict after about four hours of deliberation, as reported.

In a statement, Mark Cohen, the defense attorney for Bankman-Fried, said the FTX founder respects the jury’s verdict but will continue to fight to prove his innocence.

STATEMENT FROM THE TEAM OF SAM BANKMAN-FRIED —

“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." pic.twitter.com/Q69w6nKB34

— Teddy Schleifer (@teddyschleifer) November 3, 2023

Bankman-Fried has been found guilty of two counts of conspiracy to commit wire fraud, two counts of wire fraud, and one count of conspiracy to commit money laundering. Each of the offenses carries a maximum sentence of 20 years in prison. Additionally, he was convicted of one count of conspiracy to commit securities fraud and one count of conspiracy to commit commodity fraud, each carrying a maximum sentence of five years.

Crypto’s Biggest Fraudster

Users lost billions when the FTX collapsed, following a bank-run that forced it to halt withdrawals. The firm declared bankruptcy on the 11th of November, 2022, and Bankman-Fried was arrested about a month later. He pleaded not guilty and explained that FTX’s November 2022 downfall was due to “a number of big mistakes.”

Several FTX executives, including the company’s CTO Gary Wang and former Alameda CEO Caroline Ellison, testified against Bankman-Friend. They admitted their involvement in FTX’s collapse but claimed they followed the orders of Bankman-Fried, overseeing the fraudulent operation. It seems that Bankman-Friend used FTX’s funds to rescue Alameda, which suffered huge losses in 2022. Prosecutors alleged he organized a plan to embezzle about $8 billion in customer funds.

In a press conference outside the court, US attorney Damian Williams said:

“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.”