Sam Bankman-Fried, the founder of FTX, was convicted of defrauding customers of his bankrupt cryptocurrency exchange, marking one of the most significant financial fraud cases to date. A New York jury found him guilty on all charges after a month-long trial, which revealed he misappropriated $8 billion from customers. The verdict, delivered in less than five hours of deliberation, marks a dramatic downfall for Bankman-Fried, who lost his $26 billion fortune following FTX’s collapse.
The trial showcased the prosecution’s argument that Bankman-Fried transferred customer funds to his hedge fund, Alameda Research, and used them for personal gains, including political donations. Despite his defense and testimony claiming no intentional wrongdoing, the jury sided with the prosecution’s portrayal of his actions as driven by greed and a disregard for the rules.
Bankman-Fried, once a prominent figure in the crypto industry, now joins a list of individuals convicted of major financial crimes in the U.S. His sentencing is scheduled for March 2024, and he faces additional charges in a forthcoming trial.
