Crypto Collapse: Sam Bankman-Fried Found Guilty of Defrauding FTX Customers

207
SHARE

The Manhattan federal jury has reached a verdict in the high-profile case of FTX co-founder, Sam Bankman-Fried. The 31-year-old entrepreneur presided over what is now known as the largest crypto collapse in history.

The jurors deliberated for several hours following the conclusion of Bankman-Fried’s criminal trial. The jury found Bankman-Fried guilty of defrauding his customers, investors, and lenders. And delivered a verdict of guilty on all seven criminal charges, which ranged from wire fraud to money laundering. 

This conviction echoed through the crypto community. And the counts collectively carry a maximum sentence of a staggering 110 years. 

Bankman-Fried, known for his stoicism, remained composed as the verdict was read in the courtroom. His parents were visibly upset. 

But the legal troubles for Bankman-Fried are far from over. In the coming year, he is set to face a separate set of criminal charges, alleging bank fraud and bribery of Chinese officials in a March 28 trial.

The prosecution’s case against Bankman-Fried revolved around the accusation that he intentionally embezzled $14 billion in customer deposits from his cryptocurrency exchange, a scheme that he purportedly executed in collaboration with three of his top executives: Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX engineering director Nishad Singh.