Sam Bankman-Fried was convicted on all seven FTX fraud charges

By: Dickson Arinze

Sam Bankman-Fried was convicted on all seven FTX fraud charges

November 3, 2023 7:44 AM

As one of the largest financial frauds in U.S. history, Bankman-Fried's actions have been described as "a multibillion-dollar scheme designed to make him the king of crypto" by U.S. Attorney Damian Williams.


After nearly four hours of deliberation, a New York jury convicted former FTX CEO Sam Bankman-Fried guilty on all seven counts.


Bankman-Fried was found guilty of two charges of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy, as well as one count of money laundering conspiracy.


On March 28, 2024, he will appear before New York District Judge Lewis Kaplan to be sentenced. Judge Kaplan will consider the government's sentencing recommendation but ultimately decide.


Bankman-Fried faces between 5 and 20 years in jail for his various offenses, with a maximum penalty of 20 years for wire fraud, wire fraud conspiracy, and money laundering conspiracy.


In one of the largest financial scams in American history, U.S. Attorney for the Southern District of New York Damian Williams described Bankman-Fried's offenses as "a multibillion-dollar scheme designed to make him the king of crypto" in a press conference outside the court.


Mark Cohen, an attorney for Bankman-Fried, released a statement saying, "We appreciate the jury's judgment. However, we are dissatisfied with the outcome. Mr. Bankman Fried insists he is innocent and plans to keep fighting the accusations made against him.

 


Caroline Ellison, the former CEO of Alameda; Gary Wang, the company's co-founder; and Nishad Singh, the company's former head of engineering, all pleaded guilty to separate offenses and cooperated with the government to testify against Bankman-Fried throughout the five-week trial.


After entering a not-guilty plea, Bankman-Fried took the stand in his trial to insist on his innocence and attribute the collapse of FTX in November 2022 to "several big mistakes."


He denied any misconduct in FTX's relationship with Alameda and attempted to separate himself from critical choices.


Bankman-Fried blamed Wang for the company's financial woes, saying he "wasn't entirely sure what happened" with Alameda's line of credit, which had ballooned to billions as the crypto market collapsed in 2022.


While he did not believe Ellison deceived FTX clients by withdrawing over $8 billion worth of their assets, he did characterize it as Alameda borrowing from the exchange, which he criticized Ellison for in his testimony.