Cryptocurrency exchange FTX, once valued at $32 billion (£26 billion), collapsed in November 2022, leaving $8 billion in customer funds unaccounted for.
US attorney Damian Williams stated, “Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history—a multibillion-dollar scheme designed to make him the king of crypto.” He emphasized that the case was rooted in deception, expressing zero tolerance for such behavior.
As the verdict was read, Bankman-Fried stood with his hands clasped, while his parents sat in distress. The jury found him guilty of deceiving investors and lenders, and of embezzling billions from FTX, leading to the company’s downfall. He faced seven charges of fraud and money laundering but had pleaded not guilty, claiming he acted in good faith despite his mistakes.
Bankman-Fried’s attorney, Mark Cohen, stated, “We respect the jury’s decision but are disappointed with the result.” He maintained that his client would continue to fight the charges.
Three of Bankman-Fried’s former close associates, including ex-girlfriend Caroline Ellison, have pleaded guilty and agreed to testify against him in exchange for reduced sentences, with their sentencing pending.
Evidence presented during the trial revealed that Bankman-Fried’s crypto trading firm, Alameda Research, received customer deposits at a time when banks were hesitant to work with FTX. Instead of safeguarding these funds, he diverted them to pay Alameda’s lenders, purchase properties, and make political contributions, contrary to his public assurances.
Five of the charges against Bankman-Fried carry a maximum penalty of 20 years in prison, while the other two carry a five-year maximum.