Crypto-King Sam Bankman-Fried found guilty on 7 federal counts of fraud, looking at life in prison
Former billionaire and “crypto king” founder of FTX, Sam Bankman-Fried, 31, is broke and looking at a maximum sentence of 110 years behind bars after being found guilty on all counts in his federal fraud and conspiracy trial yesterday in New York City. After his cryptocurrency exchange FTX went belly-up in 2022 costing his individual customers upwards to hundreds of thousands of dollars each, investigators looking into the collapse discovered that $8.9 billion in customer assets were missing from the exchange, according to CNBC. In a Manhattan courtroom jury trial yesterday, Bankman-Fried was found guilty of seven counts of fraud and conspiracy.
Prosecutors in the case against Bankman-Fried said that ultimately, the former CEO defrauded his customers of approximately $10 billion.
Bankman-Fried was charged with seven counts of fraud, conspiracy and money laundering in what federal prosecutors described as “one of the biggest financial frauds in American history,” according to ABC News.
He was accused of using customer deposits on the crypto trading platform FTX to cover losses at his hedge fund, pay off loans and buy lavish real estate, among other personal expenses. He pleaded not guilty to all counts. With the conviction on all charges, he could face a sentence of up to 110 years in prison. His sentencing was scheduled for March 28, 2024.
Outside the courtroom and after the verdict was delivered, Bankman-Fried’s lawyer, Marc Cohen, spoke to the press, stating, that his client, “maintains his innocence and will continue to vigorously fight the charges against him. We respect the jury’s decision. But we are very disappointed with the result.”
Also yesterday, the U.S. Justice Department issued the following statement from Attorney General Merrick Garland in regards to the jury conviction in Bankman-Fried’s trial:
“Sam Bankman-Fried thought that he was above the law. Today’s verdict proves he was wrong. This case should send a clear message to anyone who tries to hide their crimes behind a shiny new thing they claim no one else is smart enough to understand: the Justice Department will hold you accountable. I am grateful to the U.S. Attorney’s Office for the Southern District of New York and the FBI for their outstanding work in bringing Mr. Bankman-Fried to justice.”
Much of the prosecution’s case against Bankman-Fried depended upon the testimonies gleaned from several former employees and friends from his inner-circle, including his former girlfriend, 28-year-old Caroline Ellison who was also the chief executive of Alameda Research. According to Ellison, Bankman-Fried used Alameda Research to siphon billions of dollars from his FTX customers.
With that money, prosecutors said, the Massachusetts Institute of Technology graduate gained influence and power through investments, contributions, tens of millions of dollars in political contributions, Congressional testimony and a publicity campaign that enlisted celebrities like comedian Larry David and football quarterback Tom Brady.
Ellison testified that Bankman-Fried directed her while she was chief executive of Alameda Research to commit fraud as he pursued ambitions to lead huge companies, spend money influentially and run for U.S. president someday. She said he thought he had a 5% chance to eventually be U.S. president. ~ per The Associated Press
After the prosecution rested its case, it only took the jury about half a day to render their verdict – Sam Bankman-Fried, guilty on all seven federal counts of the biggest financial fraud in U.S. history.
For more on the story, see the video accompanying this article.
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(Sam Bankman-Fried cover photo, Image credit: Twitter)
Posted by Richard Webster, Ace News Today
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One thought on “Crypto-King Sam Bankman-Fried found guilty on 7 federal counts of fraud, looking at life in prison”
One coin 🪙 was also fraud 😞.
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