Verdicts & Settlements
Former crypto billionaire Samuel Bankman-Fried discovered responsible of fraud, conspiracy
FTX cryptocurrency trade founder Samuel Bankman-Fried was discovered responsible of seven counts of fraud and conspiracy in New York federal courtroom Thursday. Photograph by Seth Wenig/The Related Press.
FTX cryptocurrency trade founder Samuel Bankman-Fried was discovered responsible of seven counts of fraud and conspiracy in New York federal courtroom Thursday.
FTX collapsed in November 2022, after a run on deposits uncovered $8 billion in lacking buyer funds. The next month, Bankman-Fried was arrested and accused of touting the trade as a secure platform for crypto asset buying and selling whereas diverting billions of {dollars} in buyer property to Alameda Analysis, his privately held hedge fund. He allegedly then used these funds for his functions.
After a monthslong trial and only a few hours of deliberation, the jury convicted Bankman-Fried of two counts of wire fraud conspiracy, two counts of wire fraud and one depend of conspiracy to commit cash laundering, every of which carries a most sentence of 20 years.
Based on the U.S. attorney’s office for the Southern District of New York, he was additionally convicted of conspiracy to commit commodities fraud and conspiracy to commit securities fraud, every of which carries as much as 5 years in jail.
“Sam Bankman-Fried perpetrated one of many largest monetary frauds in American historical past—a multibillion-dollar scheme designed to make him the king of crypto—however whereas the cryptocurrency business is perhaps new and the gamers like Sam Bankman-Fried is perhaps new, this type of corruption is as previous as time,” stated U.S. Legal professional Damian Williams in an announcement Thursday.
The New York Times, CNN, NPR and Reuters have protection of the choice.
Based on NPR, Mark Cohen, Bankman-Fried’s lawyer, additionally launched an announcement Thursday.
“We respect the jury’s choice. However we’re very upset with the end result. Mr. Bankman-Fried maintains his innocence and can proceed to vigorously combat the fees in opposition to him,” Cohen stated.
Regulators, buyers and the crypto group have paid shut consideration to Bankman-Fried’s trial, which might sign the start of a crackdown on the largely unregulated crypto market, CNN studies. Simply over a 12 months in the past, Bankman-Fried was price greater than $20 billion and FTX was valued at $32 billion, the New York Occasions additionally studies.
Bankman-Fried is scheduled to be sentenced in March and is predicted to enchantment.
He additionally faces a second trial on marketing campaign finance and different expenses early subsequent 12 months.
See additionally:
“Sullivan & Cromwell’s history with FTX draws scrutiny as it racks up bankruptcy fees”
“Judge in Bankman-Fried trial prods defense lawyers on repetitive questions, appears irritated”
“Former Stanford law dean was among bond guarantors for FTX founder Sam Bankman-Fried”
“Law prof parents of FTX founder used influence to enrich themselves, suit alleges”
