Search
Search
Sam Bankman-Fried Guilty on All Counts in FTX Crypto Fraud

Sam Bankman-Fried Guilty on All Counts in FTX Crypto Exchange Fraud Trial

134 Listen to this article In a significant legal development, Sam Bankman-Fried, once a celebrated figure in the cryptocurrency world, […]

Latest News

Listen to this article

In a significant legal development, Sam Bankman-Fried, once a celebrated figure in the cryptocurrency world, has been found guilty of all charges brought against him in a federal fraud trial related to his involvement with the cryptocurrency exchange FTX and its affiliated hedge fund, Alameda Research.

Background

Bankman-Fried was facing seven counts, including wire fraud, securities fraud, and money laundering, following the collapse of FTX and Alameda Research in November 2022. These events triggered a chain reaction that saw thousands of customers suffer substantial losses.

The verdict, delivered on Thursday, came after approximately four hours of deliberations by a federal jury in Manhattan. Bankman-Fried, a co-founder of FTX, was found guilty on all counts, making it one of the most significant financial fraud cases in American history.

The U.S. attorney for the Southern District of New York, Damian Williams, remarked that Bankman-Fried had “perpetrated one of the biggest financial frauds in American history.” He emphasized that the cryptocurrency industry and its players might be relatively new, but fraud and corruption were age-old issues.

Bankman-Fried now faces a potentially severe prison sentence of up to 110 years, with his sentencing scheduled for March 28.

List of all seven charges in which Sam Bankman Fried Found Guilty

  • Two counts of wire fraud
  • Two counts of wire fraud conspiracy
  • One count of securities fraud
  • One count of commodities fraud conspiracy
  • One count of money laundering conspiracy
Read Also:  All Crypto Companies are Warming to UAE Know Why?

Sam Bankman-Fried’s legal ordeal culminated in his conviction on a range of serious charges. Specifically, he was found guilty of two counts of wire fraud, indicating his involvement in fraudulent electronic communications or transactions. Additionally, two counts of wire fraud conspiracy were levied against him, signifying that he had conspired with others to commit wire fraud. A count of securities fraud was established, denoting his deceptive activities related to financial securities. The case also included one count of commodities fraud conspiracy, highlighting his participation in a conspiracy to defraud in commodities trading. Finally, a count of money laundering conspiracy underscored his involvement in a broader scheme aimed at concealing the illicit origins of funds, adding to the weight of the verdict against him.

Collapse of FTX and Alameda Research

The downfall of FTX and Alameda Research in 2022 was a direct result of financial vulnerabilities within the organizations. Notably, Alameda had received billions of dollars from FTX’s customers, and a significant portion of Alameda’s assets consisted of digital currency assets it had created. These financial irregularities formed the core of the case against Bankman-Fried.

Revelations about the firms’ precarious financial positions led many FTX customers to seek withdrawal of their funds, akin to a bank run. As a consequence, the value of Alameda’s investments plummeted, and FTX was unable to return a substantial portion of the funds due to its ties with Alameda. Billions were also spent on sponsorships, commercials, and loans to top executives, further compounding the case against Bankman-Fried.

Several key figures within FTX and Alameda, including former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and FTX head of engineering Nishad Singh, faced charges in the aftermath of the firms’ collapse. They pleaded guilty and agreed to cooperate with the prosecution, testifying against Bankman-Fried in exchange for reduced sentences.

Read Also:  Coinbase Begins Offering Crypto Loans to Large US Institutional Investors

Bankman-Fried’s Defense

During the trial, Bankman-Fried testified in his own defense, maintaining that he had no intent to defraud anyone and suggesting that the government was seeking a scapegoat for the failures of FTX and Alameda.

Upon hearing the guilty verdict, Bankman-Fried displayed little emotion, while his family members were visibly affected. His legal counsel expressed disappointment but noted that Bankman-Fried maintains his innocence and intends to vigorously challenge the charges.

Before the collapse of FTX and Alameda, Bankman-Fried’s stakes in the organizations were estimated at $26 billion by Forbes. However, this wealth dissipated with the bankruptcies, leading to the subsequent criminal charges.

In addition to his recent convictions, Bankman-Fried faces another upcoming trial related to charges of bribing foreign officials and other counts. This trial is scheduled to commence in March, and he has pleaded not guilty to all charges.

U.S. Attorney Damian Williams emphasized that Bankman-Fried’s conviction should serve as a warning to potential fraudsters, indicating that complex crimes in the cryptocurrency world would not go unpunished.

For the Latest Crypto News follow the Coinography and Subscribe our YouTube channel or follow us on social media platforms like Twitter, Facebook, Instagram and LinkedIn.

Top Recommended Articles

Read Also:  Ethereum Classic Gains Momentum Amidst ETF Speculation
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments

Get Latest Updates

Latest News

Web Stories

Latest News

0
Would love your thoughts, please comment.x
()
x
Scroll to Top
TON Network Surpasses $140M TVL as Toncoin Price Skyrockets Bitcoin Falls Below $60,000 After Israel’s Strike on Iran Ragnarok Joins Web3 via Ronin and Gravity Collaboration Worldcoin Announces “Human Centric” Blockchain: World Chain Dubai Flood Spurs Blockchain Life 2024 Airdrop ZachXBT Reveals Frauds on Ethereum Layer-2 Networks Winklevoss Twins Invest $4.5M BTC in Bitcoin Soccer Club VeChain and UFC Unveil Tokenized Gloves Collaboration Web3 Credentials Platform Galxe Goes Live with Mainnet Launch El Salvador’s Newest Hilton Leverages Tokenized Bitcoin Debt Shiba Inu Burn Spike Raises Price Over 1300% Impact Concerns GBTC ETF Hindering Bitcoin’s Path to $100,000 Bitcoin News Ethereum Futures ETF with 2x Leverage Filed by Defiance Pump.Fun Boosts Memecoin Market: $5.2M in 38 Days Charles Hoskinson Highlights Cardano’s Progress Despite Criticism Solana DEX Booms, InQubeta Presale Tops $13M Cryptocurrencies to Watch: 16 Promising Options for 2024 Crypto AI Trading Bots: Best Picks for 2024 Cardano’s Top 5 Tokens for April 2024 Investment Crypto Highlights: 12 Best Bitcoin and Crypto Casinos for 2024