NEW YORK: Sam Bankman-Fried was convicted of a massive fraud that led to the collapse of his FTX exchange, following a month-long trial that pitted the testimony of the former crypto king against that of some of his closest friends.
Bankman-Fried was found guilty of seven counts of fraud and conspiracy after jurors in Manhattan deliberated for less than five hours Thursday.He faces as much as 20 years in prison on each of the most serious charges. Judge Lewis Kaplan set a sentencing date in March.
The verdict is a win for Manhattan US Attorney Damian Williams in the highest-profile criminal prosecution in the crypto world. It also caps a spectacular fall for Bankman-Fried from early 2022 when FTX was valued at $32 billion and celebrities including Tom Brady, Larry David and Steph Curry were paid to urge people to trade digital currency on the platform.
Bankman-Fried “perpetrated one of the biggest financial frauds in American history.” Williams said after the verdict. “A multibillion dollar scheme designed to make him the King of Crypto.”
Prosecutors said Bankman-Fried directed the transfer of FTX customer money into Alameda Research, an affiliated hedge fund, for risky investments, political donations and expensive real estate before both companies collapsed into bankruptcy last year.
Bankman-Fried was standing, holding his hands in front of him and looking at the jury box, as he listened to the verdict. He was led out of the courtroom a few minutes later as his parents watched from the front row of the public gallery.
His father, Joseph Bankman, doubled over and put his head down as the guilty verdicts were read out.
Prosecutors characterized him as the mastermind of a massive fraud at FTX, of creating a “pyramid of deceit” built on lies and false promises. Bankman-Fried’s lawyers positioned him as a hard-working math nerd who tried in good faith to reverse the fast-deteriorating situation in the company last year.
Bankman-Fried’s attorney, Mark Cohen, said while they respect the jury’s decision, they will look at an appeal.
“We are very disappointed with the result,” Cohen said in a statement. “Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.”
The trial featured evidence from Bankman-Fried’s former friends and colleagues, including Alameda Chief Executive Officer Caroline Ellison, FTX co-founder Gary Wang and engineering chief Nishad Singh. All three members of Bankman-Fried’s inner circle pleaded guilty to felony charges and took the stand to implicate him in hopes of avoiding prison.
Ellison, who had an on-and-off romantic relationship with Bankman-Fried, gave the most emotional testimony of the trial, fighting back tears as she described the days leading to FTX’s Nov. 11, 2022, bankruptcy filing.
“That was overall the worst week of my life,” she told jurors.
Singh, a close friend of Bankman-Fried’s younger brother, testified that he became suicidal around the same time.
The verdict followed a series of legal setbacks for Bankman-Fried throughout the case, including rulings keeping him locked up before trial and limiting the evidence his team could present.
Watch Judge skeptical in FTX founder’s charges request
Bankman-Fried was found guilty of seven counts of fraud and conspiracy after jurors in Manhattan deliberated for less than five hours Thursday.He faces as much as 20 years in prison on each of the most serious charges. Judge Lewis Kaplan set a sentencing date in March.
The verdict is a win for Manhattan US Attorney Damian Williams in the highest-profile criminal prosecution in the crypto world. It also caps a spectacular fall for Bankman-Fried from early 2022 when FTX was valued at $32 billion and celebrities including Tom Brady, Larry David and Steph Curry were paid to urge people to trade digital currency on the platform.
Bankman-Fried “perpetrated one of the biggest financial frauds in American history.” Williams said after the verdict. “A multibillion dollar scheme designed to make him the King of Crypto.”
Prosecutors said Bankman-Fried directed the transfer of FTX customer money into Alameda Research, an affiliated hedge fund, for risky investments, political donations and expensive real estate before both companies collapsed into bankruptcy last year.
Bankman-Fried was standing, holding his hands in front of him and looking at the jury box, as he listened to the verdict. He was led out of the courtroom a few minutes later as his parents watched from the front row of the public gallery.
His father, Joseph Bankman, doubled over and put his head down as the guilty verdicts were read out.
Prosecutors characterized him as the mastermind of a massive fraud at FTX, of creating a “pyramid of deceit” built on lies and false promises. Bankman-Fried’s lawyers positioned him as a hard-working math nerd who tried in good faith to reverse the fast-deteriorating situation in the company last year.
Bankman-Fried’s attorney, Mark Cohen, said while they respect the jury’s decision, they will look at an appeal.
“We are very disappointed with the result,” Cohen said in a statement. “Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.”
The trial featured evidence from Bankman-Fried’s former friends and colleagues, including Alameda Chief Executive Officer Caroline Ellison, FTX co-founder Gary Wang and engineering chief Nishad Singh. All three members of Bankman-Fried’s inner circle pleaded guilty to felony charges and took the stand to implicate him in hopes of avoiding prison.
Ellison, who had an on-and-off romantic relationship with Bankman-Fried, gave the most emotional testimony of the trial, fighting back tears as she described the days leading to FTX’s Nov. 11, 2022, bankruptcy filing.
“That was overall the worst week of my life,” she told jurors.
Singh, a close friend of Bankman-Fried’s younger brother, testified that he became suicidal around the same time.
The verdict followed a series of legal setbacks for Bankman-Fried throughout the case, including rulings keeping him locked up before trial and limiting the evidence his team could present.
Watch Judge skeptical in FTX founder’s charges request
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