InfoStride News reported that FTX founder Sam Bankman-Fried has been found guilty of embezzling $8 billion from customers of his now-defunct cryptocurrency exchange. Following a month-long trial, a 12-member jury in Manhattan federal court convicted Bankman-Fried on all seven counts he faced. The sentencing is scheduled for March 28, 2024, and he could potentially face decades in prison.
The verdict comes approximately a year after FTX filed for bankruptcy, leading to a rapid corporate collapse that surprised financial markets and wiped out Bankman-Fried’s estimated $26 billion personal fortune. Reuters notes that the jury reached the verdict after just over four hours of deliberations.
The conviction marks a significant win for the U.S. Justice Department and Damian Williams, the top federal prosecutor in Manhattan, who has prioritized combating corruption in financial markets. Speaking to reporters outside the courthouse, Williams emphasized that while the crypto industry and players like Bankman-Fried may be new, the type of fraud committed is as old as time, and there is no tolerance for it.

Bankman-Fried’s defense lawyer, Mark Cohen, expressed disappointment with the verdict but stated that Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.
During the trial, Bankman-Fried testified that he did not defraud FTX customers or misappropriate their funds. Instead, he claimed that Alameda “borrowed” money from the exchange. Prosecutors countered this by asserting that Bankman-Fried made false promises and was responsible for the loss of billions of dollars for thousands of FTX investors. They argued that he had multiple opportunities to disclose the truth but chose to double down on false narratives.
The December 2022 indictment from the Department of Justice (DOJ) alleged that Bankman-Fried knowingly defrauded FTX customers by misusing their deposits to invest in other companies and settle debts. The court and jury have now deemed this statement to be true after reviewing substantial evidence and reaching a verdict.
Former Alameda CEO Caroline Ellison, along with former FTX executives Gary Wang and Nishad Singh, testified for the prosecution after entering guilty pleas. They claimed that Bankman-Fried directed them to commit crimes, including aiding Alameda in looting FTX and providing false information to lenders and investors about the companies’ financial status. The defense countered by suggesting that the three, who are awaiting sentencing, falsely implicated Bankman-Fried in an attempt to secure more lenient sentences. Prosecutors may request that the judge consider their cooperation when determining their punishment.
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