Former FTX CEO Sam Bankman-Fried has been found guilty of all seven charges against him by a New York jury, following approximately four hours of deliberation.
The charges include 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.
On March 28, 2024, Bankman-Fried is scheduled to return to court for sentencing, to be determined by New York District Judge Lewis Kaplan.
While government prosecutors will provide a sentencing recommendation, Judge Kaplan will have the final authority in this matter.
These charges carry severe penalties, ranging from five to 20 years in prison. In particular, wire fraud, wire fraud conspiracy, and money laundering conspiracy could result in a maximum sentence of 20 years behind bars.
During a press conference outside the courtroom, New York Southern District U.S. Attorney Damian Williams characterized Bankman-Fried’s actions as part of a “multibillion-dollar scheme designed to make him the king of crypto.”
He labeled it one of the most significant financial frauds in American history.
Bankman-Fried’s attorney, Mark Cohen, expressed respect for the jury’s decision but also disappointment with the outcome.
Cohen maintained that Bankman-Fried asserts his innocence and will vigorously continue to fight the charges against him.
Notably, other key FTX executives, including former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering head Nishad Singh, have pleaded guilty to various charges and collaborated with the government to testify against Bankman-Fried during the five-week trial.
Throughout the trial, Bankman-Fried consistently pleaded not guilty to all charges.
He also took the stand to assert his innocence and described FTX’s collapse in November 2022 as “a series of significant errors.”
Bankman-Fried distanced himself from pivotal decisions, attributing blame to Wang for creating a function that allowed Alameda to trade funds it didn’t possess.
Regarding Alameda’s ballooning line of credit during the 2022 crypto market downturn, he claimed to be uncertain about the details.
Bankman-Fried also shifted responsibility onto Ellison for neglecting risk management and denied defrauding FTX customers, characterizing the situation as Alameda borrowing funds from the exchange, rather than outright deception of customers.
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