FTX Founder Sam Bankman-Fried Found Guilty on All Charges
A jury has delivered a guilty verdict for Sam Bankman-Fried, founder of FTX, on all seven criminal counts against him. Bankman-Fried now faces a maximum sentence of 115 years in prison. The charges include wire fraud, conspiracy to commit wire fraud, securities fraud, commodities fraud, and money laundering.
Sam Bankman-Fried, a 31-year-old graduate of Massachusetts Institute of Technology and son of two Stanford legal scholars, had previously pleaded not guilty to these charges. The charges stemmed from the collapse of FTX and sister hedge fund Alameda in late last year.
Damian Williams, the U.S. attorney for the Southern District of New York, characterized Bankman-Fried’s actions as one of the biggest financial frauds in American history. He stated, “While the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time. This case has always been about lying, cheating, and stealing, and we have no patience for it.”
Attorney General Merrick Garland echoed this sentiment, stating that Bankman-Fried thought he was above the law and that the verdict proved him wrong. Garland further emphasized that the Justice Department would hold accountable anyone who tries to hide their crimes behind innovative technologies.
The trial, which began in October, featured testimonies from Bankman-Fried’s former close friends and top lieutenants, as well as the defendant himself. The jury swiftly returned a verdict after receiving the case on Thursday afternoon.
Bankman-Fried’s parents were visibly anxious throughout the trial. They sat in the second pew of the courtroom, providing support to their son. Bankman-Fried remained composed during the reading of the verdict and did not display any visible emotions.
Following the guilty verdict, Bankman-Fried’s attorney, Mark Cohen, stated that his client maintains his innocence and will continue to vigorously fight the charges against him.
The trial also revealed the testimony of key government witnesses, including Caroline Ellison, Bankman-Fried’s ex-girlfriend and the former head of Alameda, as well as Gary Wang, FTX co-founder and Bankman-Fried’s childhood friend. Both Ellison and Wang had previously pleaded guilty to multiple charges and cooperated with prosecutors.
Bankman-Fried’s defense mainly relied on his own testimony, asserting that he did not commit fraud or misappropriate customer funds but made some business mistakes instead.
The jury’s primary consideration centered on whether Bankman-Fried acted with criminal intent by using customer funds for personal expenses and to cover losses at Alameda. The prosecution argued that Bankman-Fried schemed and lied to obtain and spend the funds.
Bankman-Fried’s sentencing is scheduled for March 28, and he is also facing another trial on March 11. The government has until February 1 to decide whether to proceed with the second trial.
Bankman-Fried’s case has drawn comparisons to the high-profile trial of Elizabeth Holmes, the founder of Theranos. Holmes was found guilty of defrauding investors and was sentenced to more than 11 years in prison.
As the verdict was announced, Bankman-Fried’s parents awaited their son’s exit from the courtroom. His attorney expressed gratitude to the jurors for their service.
This trial serves as a significant warning to individuals attempting to conceal their crimes within the realm of innovative technologies. The U.S. Justice Department’s commitment to holding fraudsters accountable remains resolute.
[Video: SBF Case is Warning to Every Fraudster]
Sources:
– CNBC
– Reuters
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