Sam Bankman-Fried, co-founder and former CEO of crypto exchange FTX and trading firm Alameda Research, has been found guilty of all seven charges related to fraud and money laundering.
The defendant is "charged with a wide-ranging scheme to misappropriate billions of dollars of client funds deposited with FTX and deceive investors and lenders of FTX and Alameda Research," according to a statement from the US attorney's office in the Southern District of New York. .
The decision was made on Thursday, following a five-week trial that delved into how one of the largest crypto exchanges and its sister trading company collapsed about a year ago. The U.S. Department of Justice charged Bankman-Fried, 31, about 11 months ago.
The jury took about four hours to reach a verdict on six counts related to fraud and one count related to money laundering.
Bankman-Fried Quickly Fell From Top Of Crypto Totem Pole After Flawed Alameda Balance Sheet Revealed sleepless by CoinDesk in November 2022, causing industry-wide panic and concern around FTX and its liquidity.
As the story unfolded, we learned the problem was much, much bigger than many originally thought: The executives behind FTX and now-bankrupt Alameda allegedly stole more than $8 billion in customer funds.
At her trial, Bankman-Fried testified that she did not defraud FTX customers or take their funds, but rather that Alameda "borrowed" money from the exchange. Prosecutors argued that Bankman-Fried made false promises and was responsible for the loss of billions of dollars from thousands of investors in FTX. They also argued that he had plenty of opportunities to be truthful, but instead he doubled down.
DOJ December 2022 accusation stated that Bankman-Fried deliberately defrauded FTX customers by misusing their deposits to invest in other companies and pay lenders and expenses. After reams of evidence and a verdict, the court and jury have found that statement true.
The seven counts carry a possible total sentence of 115 years in prison for the defendant.
Maximum legal sentences are set by the United States Congress for “informational purposes only,” as any sentence will be determined by a judge. usually within 90 days of a guilty verdict.
