After barely four hours of deliberations, a federal jury in New York has found Sam Bankman-Fried, the co-founder and former CEO of the crypto exchange FTX and trading firm Alameda Research, guilty on all seven counts related to fraud and money laundering.
Bankman-Fried, 31, was accused of stealing billions from FTX customers and investors in one of the biggest financial frauds in US history.
The U.S. attorney’s office at the Southern District of New York said the convict misappropriated billions of dollars of customer funds deposited with FTX and deceived investors and lenders of both FTX and Alameda Research.
“His crimes caught up to him. His crimes have been exposed,” Assistant US Attorney Danielle Sassoon told the jury before they began deliberations. She added that Bankman-Fried turned his customers’ accounts into his “personal piggy bank,” with up to $14 billion disappearing.
His conviction comes after a five-week trial that delved into the collapse of one of the largest crypto exchanges and its affiliated trading company approximately a year ago.
The U.S. Department of Justice filed charges against Bankman-Fried nearly a year ago.
The jury deliberated for about four hours before reaching a verdict on six counts of fraud and one count of money laundering.
His sentencing has been set for March 28, 2024.
Bankman-Fried’s reputation plummeted after a faulty Alameda balance sheet was exposed by CoinDesk in November 2022, causing widespread panic and concern within the industry regarding FTX and its financial stability.
As the investigation progressed, it became apparent that the issue was far larger than initially believed. The executives linked to the now-defunct FTX and Alameda allegedly embezzled over $8 billion in customer funds.
During his trial, Bankman-Fried claimed he did not defraud FTX customers or misappropriate their funds, asserting that Alameda had merely “borrowed” money from the exchange. However, prosecutors argued that Bankman-Fried had made false assurances and was accountable for the loss of billions of dollars for thousands of FTX investors. They also argued that he had numerous opportunities to come clean but chose not to.
According to the DOJ’s indictment in December 2022, Bankman-Fried knowingly deceived FTX customers by using their deposits to invest in other ventures and cover debts to lenders and expenses. Following a thorough review of the evidence and a verdict, the court and jury found this statement to be accurate.
The seven charges carry a potential maximum sentence of 115 years in prison for the defendant.
Mark Cohen, Bankman-Fried’s attorney, said in a statement they “respect the jury’s decision. But we are very disappointed with the result.”
“Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.”
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