Disgraced FTX Founder Found Guilty On All Charges

Sam Bankman-Fried (SBF), the founder of the failed crypto exchange FTX, received guilty verdicts on all charges in his recent fraud trial held on November 2nd, 2023. In a federal court in Manhattan, a 12-member jury found him culpable on 7 criminal counts linked to the now infamous collapse of FTX last year, a development which caused the crypto market to crash and many investors to lose their hard earned money.

Justice prevails

Although FTX had collapsed in 2022, the trial of SBF was an entirely different story. Many of his lawyers tried to negotiate a bailout, but repeated instances of new evidence being brought forth only made matters worse for him. The aforementioned decision by the jury itself was only reached following a month-long trial.

Prosecutors depicted the 30 year old former billionaire as a deceitful fraudster who misappropriated billions via funds provided by FTX customers in order to try and cover up significant losses at his hedge fund known as Alameda Research.

SBF had also been imprisoned since August 11th, 2023, for leaking portions of a diary belonging to former Alameda Research CEO, Caroline Ellison, to the New York Times, which the prosecution claimed was witness intimidation.

Ellison testified in early October as part of a plea agreement with the government after pleading guilty to a series of fraud charges and conspiracy to commit money laundering. Not long afterwards, FTX co-founder Gary Wang also testified against Sam.

A historic decision

Sam Bankman-Fried was convicted of wire fraud, securities fraud, participation in a conspiracy, and involvement in money laundering. His sentencing, slated for March 2024, could result in a prison term of up to a whopping 110 years.

The jury swiftly reached a unanimous decision on all charges, which is uncommon in complex white-collar crime cases. Prosecutors presented ample evidence, including messages, indicating that SBF had misled investors about the financial well-being of FTX and utilized customer funds for unauthorized and risky investments through Alameda Research.

The story of Sam and FTX has indeed made history as it is the first instance of such a notable entity within the crypto space not only being charged with a plethora of fraudulent endeavors, but also convicted in such a short amount of time. Going forward, this story will always serve as a cautionary tale for everyone, especially those in relatively newer industries like crypto who may think their malicious actions will go unnoticed and unpunished.