3-11-2023 (NEW YORK) Sam Bankman-Fried, the founder of FTX, has been found guilty on all seven counts of defrauding customers of his now-bankrupt cryptocurrency exchange. The verdict, delivered by a 12-member jury in Manhattan federal court, marks one of the largest financial fraud cases in history and signifies a significant downfall for the 31-year-old former billionaire.
After a month-long trial, prosecutors successfully argued that Bankman-Fried’s actions were driven by pure greed, alleging that he stole a staggering $8 billion from the exchange’s customers. The verdict comes nearly a year after FTX filed for bankruptcy, leading to a rapid corporate collapse that sent shockwaves through the financial markets and wiped out Bankman-Fried’s estimated personal fortune of $26 billion.
The jury deliberated for just over four hours before reaching a unanimous decision. As the verdict was read, Bankman-Fried stood and clasped his hands together. He now faces a potential prison sentence of up to 110 years.
Bankman-Fried, a Massachusetts Institute of Technology graduate and the son of Stanford University law professors Barbara Fried and Joseph Bankman, had pleaded not guilty to two counts of fraud and five counts of conspiracy.
The conviction represents a significant win for the United States Justice Department, as well as Damian Williams, the top federal prosecutor in Manhattan, who has prioritized combating corruption in financial markets.
Bankman-Fried’s sentencing is scheduled for March 28, 2024, as determined by US District Judge Lewis Kaplan. Meanwhile, his defense lawyers, who had raised objections to several rulings made by Kaplan throughout the trial, are expected to appeal the verdict.
