Sam Bankman-Fried, the former CEO of one of the world’s largest cryptocurrency exchanges, FTX, has been found guilty of fraud and money laundering in a month-long trial in New York.
The verdict was reached by the jury after just four and a half hours of deliberations.
This marks a significant downfall for the 31-year-old entrepreneur, who was once a billionaire and a prominent figure in the cryptocurrency industry.
Bankman-Fried’s legal troubles began after his company, FTX, went bankrupt, leading to his arrest last year.
He now faces the possibility of spending decades in prison, with his sentencing scheduled for March 28 next year.
In a statement following the verdict, US attorney Damian Williams characterized Bankman-Fried’s actions as “one of the biggest financial frauds in American history” – a scheme that aimed to establish him as a crypto kingpin.
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Williams emphasized that the case revolved around deception, cheating, and theft, with no tolerance for such behavior.
Bankman-Fried was accused of deceiving investors and lenders and misappropriating billions of dollars from FTX, ultimately contributing to the exchange’s collapse. He faced seven charges of fraud and money laundering.
Throughout the trial, Bankman-Fried maintained his innocence, acknowledging his mistakes but claiming that he had acted in good faith. After the verdict, his lawyer, Mark Cohen, expressed disappointment with the outcome and affirmed Bankman-Fried’s intention to vigorously fight the charges.
Several of Bankman-Fried’s former associates, including his ex-girlfriend Caroline Ellison, pleaded guilty and agreed to testify against him, hoping to reduce their own sentences. Their sentencing is to take place at a later date.
As of now, there has been no response from Bankman-Fried’s spokesperson regarding the possibility of an appeal against the verdict.