Sam Bankman-Fried, the beleaguered cryptocurrency king and founder of FTX, has been found guilty on seven counts in his fraud trial in New York, marking the end of a remarkable rise that saw him amass millions in political donations and triggered criminal investigations across various agencies when FTX collapsed.
Bankman-Fried, who is 31 years old, faced multiple charges, including wire fraud and conspiracy to commit securities fraud, in a case that was tried in the Southern District of New York. The charges stemmed from allegations that he defrauded his customers and investors of billions of dollars, a scheme that prosecutors have labeled as “one of the largest financial frauds in American history.”
Damian Williams, the U.S. attorney for the Southern District of New York, stated, “[It was] a multibillion-dollar scheme designed to make him the King of Crypto – but while the cryptocurrency industry and figures like Sam Bankman-Fried may be relatively new, this kind of corruption is age-old.”
Williams further emphasized, “This case has always been about deception, dishonesty, and theft, and we have zero tolerance for it.”
The jury reportedly deliberated for just over four hours after being instructed to stay late by the judge presiding over the case.
Sheila Warren, the CEO of the Crypto Council for Innovation, expressed, “Bankman-Fried’s case was always centered on fraud, and this verdict affirms that the jury grasped the essence of this trial.”
Warren added, “The jury heard evidence that Sam Bankman-Fried was primarily motivated by self-interest, and the verdict reflects that. This case underscores that long-standing regulations provide a path to hold those committing such crimes accountable.”
Following the collapse of the FTX cryptocurrency exchange last year, Bankman-Fried was apprehended in the Bahamas in December and now faces charges for wire fraud, conspiracy to commit wire fraud, securities fraud, money laundering, and conspiracy to make unlawful political contributions and defraud the Federal Election Commission.
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The trial commenced on October 2 in a Manhattan courthouse, with the jury hearing testimonies from several members of Bankman-Fried’s executive team, including his ex-girlfriend and former Alameda Research CEO, Caroline Ellison.
Bankman-Fried himself took the stand last week, testifying before the trial judge and lawyers on Thursday and addressing the jury on Friday.
Prosecutors began their cross-examination of Bankman-Fried in the presence of the jury on Monday, highlighting his public statements made both before and after FTX declared bankruptcy last year when it couldn’t process billions in withdrawals, according to The Associated Press.
Bankman-Fried was arrested in the Bahamas in 2022.
Sheila Warren expressed her hope, saying, “My hope is that we can shift the focus to the victims here instead of continuing to give attention to the latest individual to commit one of the oldest crimes in the book: fraud.
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