Sam Bankman-Fried, previously hailed as a cryptocurrency prodigy, has been found guilty of all fraud charges against him. This verdict comes a year after the downfall of his exchange, FTX, which caused substantial losses for numerous customers.
The federal jury in Manhattan rendered the verdict approximately four hours after initiating their deliberations. Bankman-Fried, co-founder of the digital currency exchange FTX, faced seven charges, including wire fraud, securities fraud, and money laundering, related to his involvement with FTX and its affiliated hedge fund, Alameda Research.
Damian Williams, the U.S. attorney for the Southern District of New York, described Bankman-Fried’s actions as “one of the most significant financial frauds in American history” following the verdict.
Bankman-Fried could potentially face a prison sentence of up to 110 years, with his sentencing scheduled for March 28. The collapse of FTX and Alameda in November 2022 revealed substantial financial liabilities, including Alameda’s significant funds taken from FTX’s customers and its digital currency assets, which played a central role in the case against Bankman-Fried.
Numerous leaders of FTX and Alameda also faced charges after the firms’ collapses. Some, like former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX head of engineering Nishad Singh, pleaded guilty and agreed to cooperate with the prosecution in exchange for leniency.
Bankman-Fried testified in his defense during the trial but often responded with “I can’t recall” during cross-examination, according to the prosecution.
Bankman-Fried’s defense argued that he had no intention of defrauding anyone and suggested that the government was seeking a scapegoat for the failures of FTX and Alameda.
As the verdicts were read, Bankman-Fried remained composed, while his family members displayed a range of emotions. His legal team expressed disappointment with the verdict, emphasizing their client’s maintenance of innocence.
Previously, Forbes estimated Bankman-Fried’s stakes in Alameda and FTX to be worth $26 billion, but after the bankruptcies, these assets vanished, followed by criminal charges. He also faces another trial related to charges of bribing foreign officials and other counts, set to begin in March, to which he has pleaded not guilty.
On Thursday, Bankman-Fried was found guilty of various charges, including wire fraud, money laundering, and securities fraud conspiracy, prompting the prosecutor to emphasize that this conviction should serve as a warning to potential fraudsters.
