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Breaking: FTX founder Sam Bankman-Fried found guilty on all counts, including stealing $8 billion from users

  • FTX founder and former CEO Sam Bankman-Fried has been convicted on all charges as a 12-member jury found him guilty on Thursday.
  • According to Reuters, the defense fighting for Bankman-Fried argued that his former inner circle members falsely implicated him as a means of achieving reduced sentences.
  • Sam Bankman-Fried continues to remain in jail following the revocation of his bail back in August.

Sam Bankman-Fried, the founder and disgraced CEO of the bankrupt cryptocurrency exchange FTX, has been found guilty on all seven counts. As reported by Reuters, a 12-member jury convicted the former billionaire following a month-long trial.

Read more - SBF Trial Latest Dispatch: Sam Bankman-Fried gave special FTX perks to Bahamian officials

FTX founder Sam Bankman-Fried found guilty

The executive was charged with defrauding and misleading investors as well as stealing nearly $8 billion from the exchange’s customers. The conviction came nearly a year after the exchange filed for bankruptcy, which resulted in one of the biggest crashes in the history of the crypto market, the impact of which was felt up until nearly a month ago.

Initially said to be an impact of the then bear market, upon further investigation, it was revealed that not only was Bankman-Fried stealing from the exchange but was also misappropriating customer funds. This was done to provide loans to FTX’s sister company, Alameda Research.

Consequently, upon revelation, Sam Bankman-Fried, former Alameda Research CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh were all charged with various crimes. The latter three eventually testified for the prosecution after entering guilty pleas, stating Bankman-Fried directed them to commit crimes, including helping Alameda loot FTX and lying to lenders and investors about the companies' finances.

The defense, on the other hand, argued that these former inner circle members were falsely implicating the FTX founder in order to receive reduced sentencing. However, the prosecutor argued saying,

“He didn't bargain for his three loyal deputies taking that stand and telling you the truth: that he was the one with the plan, the motive and the greed to raid FTX customer deposits - billions and billions of dollars - to give himself money, power, influence. He thought the rules did not apply to him. He thought that he could get away with it.

Sam Bankman-Fried in jail

While Sam Bankman-Fried is yet to be sentenced, he remains in jail after his bail was revoked back in August, fearing evidence tampering and witness intimidation. This was done after it was revealed in court documents that the FTX founder was using his bail to intimidate Caroline Ellison by releasing private documents and journals.

In regards to the sentencing, US District Judge Lewis Kaplan has announced March 28, 2024, as the date for Bankman-Fried's sentencing.

Read more - SOL open interest rises nearly $50 million in three days as Solana price revisits pre-FTX collapse highs

 

Author

Aaryamann Shrivastava

Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.

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