Sam Bankman-Fried (SBF), the disgraced founder of digital asset trading platform FTX, has been found guilty by a 12-member jury in Manhattan federal court. In the latest development on SBF trial series, Bankman-Fried, previously termed as the white knight of the digital asset space, is now facing decades in prison after being found guilty on seven counts.
SBF Trial: Bankman-Fried Found Guilty on Seven Counts
Bankman-Fried was convicted on two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy and one count of money laundering conspiracy. He has been found guilty on all these counts, carrying sentences ranging from 5 to 20 years each.
Interestingly, the trial of Bankman-Fried went on for about a month, and at 7:37 p.m. ET Thursday, the clerk said, “the jury has reached a verdict.” While SBF’s parents displayed visible distress at that moment, SBF maintained a steady gaze as his charges were read. Simultaneously, the jurors proclaimed their verdict, unanimously finding Bankman-Fried guilty on all counts.
Overall, as per a CNBC report, the disgraced entrepreneur is now facing close to 115 years in prison. Interestingly, Judge Lewis Kaplan has stated that Bankman-Fried will have to return to court once again on 28 March, 2024, when his sentencing will take place. While prosecutors from the Department of Justice (DoJ) will suggest a sentence for SBF, Kaplan will have the last say in the matter.
“We respect the jury’s decision. But we are very disappointed with the result,” stated Mark Cohen, the lawyer representing SBF, while adding that the FTX founder “maintains his innocence and will continue to vigorously fight the charges against him.”
‘One of the Biggest Financial Frauds in American History’
On the other hand, New York Southern District US Attorney Damian Williams talked about the decision taken by the jury in a press conference outside the New York court, stating that SBF “perpetrated one of the biggest financial frauds in American history.”
Williams also noted that the digital asset sector might be new but fraudsters like SBF have existed for a long time. He stated:
“This case has always been about lying, cheating, and stealing, and we have no patience for it.”
Attorney General Merrick Garland commented on the verdict, stating:
“Sam Bankman-Fried thought that he was above the law. Today’s verdict proves he was wrong. This case should send a clear message to anyone who tries to hide their crimes behind a shiny new thing they claim no one else is smart enough to understand: the Justice Department will hold you accountable.”
Friends Turned Their Back
During the month-long trial, several key government witnesses, including Caroline Ellison (Bankman-Fried’s ex-girlfriend and Alameda’s former CEO) and FTX co-founder Gary Wang (Bankman-Fried’s childhood friend) testified in the court.
Notably, they had pleaded guilty to multiple charges in December and were cooperating with the prosecution. As a result, SBF’s defense primarily relied on his own testimony, where he denied committing fraud or embezzlement. He attributed his actions to business and management mistakes.
The pivotal question for the jurors revolved around whether Bankman-Fried had criminal intent when he diverted $8 billion worth of customer funds from FTX. Notably, he used these funds for real estate deals, investments, sponsorships, political contributions, and to cover Alameda’s losses after a market decline.
