In the New York District Court, after a trial lasting one month, Sam Bankman-Fried (SBF), 31, founder and former CEO of the globally prominent crypto exchange FTX, was convicted on charges of fraud and money laundering. The determination of the jury was reached swiftly, following a mere four and a half hours of deliberation.With the conviction, the crypto industry can also lock up a capital and hope for a fresh start.
The arrest of Bankman-Fried occurred subsequent to the bankruptcy declaration of his company, FTX, last year. He is potentially facing a substantial prison sentence, with formal sentencing scheduled for March 28 of the following year. “Sam Bankman-Fried executed a colossal financial deception, ranking among the gravest in the annals of American finance, with the aim of crowning himself the crypto sovereign,” declared U.S. Attorney Damian Williams post-verdict.
Despite his not guilty plea to the allegations and insistence on honest, albeit flawed, actions, the jury’s verdict was guilty. Three associates of Bankman-Fried, including Caroline Ellison, his former romantic partner, conceded guilt and provided testimony against him, aiming to mitigate their own legal repercussions.Their sentencing is deferred to a future date.
The prosecution provided evidence indicating that SBF‘s trading company, Alameda Research, managed FTX customer deposits from the outset due to traditional banks’ reluctance to provide accounts. Contrary to Bankman-Fried’s public assurances, these funds were not safeguarded but were instead utilized to settle Alameda debts, acquire real estate, and fund both investments and political contributions.
Taking a bold approach, SBF testified in his defense, attempting to persuade the jury of the absence of criminal intent. His defense painted him as a mathematically inclined individual who was ill-equipped to manage the explosive growth of his businesses, arguing that poor judgment does not equate to criminality. SBF portrayed the fiscal transactions between his companies as legitimate and claimed ignorance of the financial disarray outlined by his team until moments before FTX‘s downfall, which left countless customers bereft of their funds.
Bankman-Fried had become emblematic of the industry’s issues, with U.S. regulatory chiefs characterizing the sector as fraught with illicit activity. Prior to the collapse, SBF was recognized for his liaisons with celebrities and regular appearances in Washington and media circles, discussing the sector.His rapid ascent in FTX and his aggressive transactions last year garnered him the label “the king of crypto”