Crypto News – In one of the largest financial scams ever, FTX founder Sam Bankman-Fried was found guilty on Thursday of stealing from users of his now-defunct cryptocurrency exchange.
Sam Bankman-Fried Case Finally Concluded and Up to 110 Years in Prison
Following a month-long trial in which prosecutors argued that Bankman-Fried stole $8 billion from the exchange’s users out of pure greed, a 12-member jury in Manhattan federal court found him guilty on all seven counts against him.
Judge Lewis A. Kaplan ordered, “Mr. Bankman-Fried, please rise and face the jury,” shortly before a jury forewoman pleaded “guilty” seven times to two counts of wire fraud, two counts of conspiracy involving wire fraud, and three additional counts of conspiracy. The convictions carry a maximum sentence of 110 years in prison. The sentence that Bankman-Fried will receive on March 28 is probably going to be significantly less than the maximum.
Bankman-Fried could not Hide his Shock as the Verdict was Announced
Bankman-Fried looked surprised when the verdict was read, his hands clasped in front of him and his lawyers still seated next to him. He sat down and spent several minutes staring down.
Respect the jury’s decision. But we are very disappointed with the result. Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him.
Mark Cohen, Bankman-Fried’s Lawyer
Standing in front of cameras outside the courthouse, U.S. Attorney Damian Williams claimed that Bankman-Fried had carried out one of the largest financial scams in American history, a multibillion-dollar plan aimed at elevating him to the position of cryptocurrency king. Williams had been seated in the front row of the spectator section during the verdict.
But here’s the thing: The cryptocurrency industry might be new. The players like Sam Bankman-Fried might be new. This kind of fraud, this kind of corruption is as old as time and we have no patience for it,
Williams
What Happened in the Courtroom?
Bankman-Fried, who was once the center of attention in the cryptocurrency world and was recognized for his disheveled, curly hair and preference for shorts and T-shirts over business attire, has now been found guilty of significant financial crimes in the United States, joining the ranks of prominent individuals such as acknowledged Ponzi schemer Bernie Madoff and “Wolf of Wall Street” fraudster Jordan Belfort.
Bankman-Fried’s sentence was scheduled for March 28, 2024, by U.S. District Judge Lewis Kaplan. A graduate of the Massachusetts Institute of Technology can spend many years behind bars. Cohen wrapped Bankman-Fried in his arm as they conversed at the defense table following Kaplan’s exit from the courtroom.
Turning to face his parents, Stanford Law School professors Joseph Bankman and Barbara Fried, who were sitting in the front row of the courtroom audience, Bankman-Fried nodded as he was escorted away by U.S. Marshals officers. Fried folded her arm over her chest and turned to face him. On a second batch of allegations brought by prosecutors earlier this year, including alleged bank fraud conspiracies and overseas bribery, Bankman-Fried is scheduled to go on trial in March of next year.
Bankman-Fried’s Actions Lead to His Arrest
After being detained in the Bahamas in December of last year, Bankman-Fried was extradited to the US and released on a $250 million personal recognizance bond that included electronic monitoring and the condition that he stay at his parents’ Palo Alto, California, home. His correspondence eventually got him into problems when the judge determined he was attempting to influence potential trial witnesses and ordered his incarceration in August. This included hundreds of phone conversations with journalists and online influencers, in addition to emails and texts.
Prosecutors utilized Bankman-Fried’s online announcements, his testimony before Congress, and his public utterances to establish that the businessperson had repeatedly assured clients that their deposits were safe and secure—as late as November 7, when he tweeted, “FTX is fine.” Customers frantically attempted to withdraw their money, but the assets were right. The following day, he removed the tweet. After four days, FTX filed for bankruptcy.
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