NEW YORK. Sam Bankman-Fried, the founder of FTX, has been found guilty of committing cryptocurrency fraud by a New York jury. Bankman-Fried was convicted of stealing over $10 billion from customers and investors, marking a significant fall from grace in the cryptocurrency industry.
The month-long trial concluded with Bankman-Fried’s claims of innocence being rejected by the jury. He faced charges related to wire fraud, wire fraud conspiracy, and other conspiracy charges, which collectively carry a maximum penalty of 110 years in prison. His sentencing is scheduled for March 28.
Bankman-Fried’s defense attorney, Mark Cohen, expressed disappointment with the verdict, stating that Bankman-Fried maintains his innocence and will continue to fight the charges.
U.S. Attorney Damian Williams described Bankman-Fried’s actions as “one of the biggest financial frauds in American history.” He emphasized the seriousness of cryptocurrency-related fraud and the need for accountability.
The trial highlighted the rise and fall of a prominent figure in the cryptocurrency world and drew parallels to the 2009 prosecution of Bernard Madoff, who was involved in a massive Ponzi scheme.
Prosecutors emphasized Bankman-Fried’s extravagant lifestyle and his attempts to gain influence and power through investments, political contributions, and high-profile endorsements. Witnesses, including Bankman-Fried’s former colleagues, testified to his involvement in siphoning billions of dollars from customer accounts.
Bankman-Fried’s arrest and extradition to the United States drew significant attention to the case, ultimately leading to his conviction for fraud.
Gary P Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
