- He was found guilty of two counts of wire fraud, two counts of wire fraud conspiracy, and three other charges
- The prosecution mainly relied on the testimony of three former top executives
FTX founder and former CEO Sam Bankman-Fried (SBF) was convicted of fraud by a New York jury on Thursday. The jury determined he stole at least $10 billion from investors and customers, world media reported.
He faces up to 110 years in prison
A jury chair responded with “guilty” of two counts of wire fraud, two counts of wire fraud conspiracy and three other charges of conspiracy. SBF will face far less than the maximum penalties, which add up to 110 years in prison. He will be sentenced on March 28, 2024.
His attorney, Mark Cohen, expressed deep disappointment with the jury’s decision.
The would-be “king of crypto”
After the verdict was pronounced, US Attorney Damian Williams told reporters SBF had perpetrated “a multibillion dollar scheme designed to make him the king of crypto.”
Bankman-Fried testified in his defense that he had never committed fraud or tried to steal from lenders, customers, or investors. He claimed he didn’t realize until October 2022 that his companies had been at least $10 billion in debt.
Testimony of former employees brought his demise
The prosecution mainly relied on the testimony of three former top executives to make their case. Alameda Research CEO Caroline Ellison, also his ex-girlfriend, told the court he had used her company to siphon billions from customer accounts at FTX.
Exchange cofounder Gary Wang revealed that SBF had told him to insert code so Alameda Research could make unlimited withdrawals from FTX. The funds belonged to customers.
Communication also got him in trouble
SBF’s phone calls, texts, and emails ultimately got him in trouble. The judge found he was trying to influence potential trial witnesses and ordered to put him in jail. Prosecutors also used his online publications and public statements against him, showing how he would promise customers that their funds were safe up until Nov. 7. FTX filed for bankruptcy on Nov. 11.
Contributors
