Sam Bankman-Fried, co-founder of FTX, has been found guilty of all charges in a high-profile fraud trial.
The jury took a mere three hours to decide on the verdict, finding Bankman-Fried guilty on seven counts of fraud and conspiracy. This comes exactly one year after an expose that led to the collapse of his cryptocurrency empire.
Bankman-Fried could face up to 110 years in prison, with sentencing scheduled for March 28. The rapid verdict reflects the strength of the evidence presented by federal prosecutors.
“Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history,” said Damian Williams, a top federal prosecutor in New York, emphasizing that the case should serve as a warning to others in the industry.
In response to the verdict, Mark S. Cohen, Bankman-Fried’s lawyer, stated, “Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.”
Bankman-Fried is also facing a second trial for violating campaign finance laws, scheduled for March 11, according to Judge Lewis Kaplan.
Following an expose by CoinDesk in 2022, which suggested Bankman-Fried’s crypto empire was built on shaky grounds, FTX declared bankruptcy just over a week later. Bankman-Fried then resigned as CEO, appointing bankruptcy expert John J. Ray as his successor.
The former FTX co-founder was accused of misappropriating billions in customer deposits for personal use, including luxury real estate and political donations. He was arrested in the Bahamas and extradited to the U.S., where he spent much of 2023 under house arrest.
In the wake of this news, investors are closely watching the market for any impact on FTX shares.