Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, has been found guilty on seven counts of fraud, embezzlement, and criminal conspiracy.
The charges stem from allegations that Bankman-Fried funneled billions of dollars in customer assets from FTX to Alameda Research, a private trading firm he also controlled, to fund personal expenses and risky investments.
The trial has been closely watched by regulators, investors, and the crypto community for signs of a potential larger crackdown on the largely unregulated crypto market.
Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, has been found guilty on seven counts of fraud, embezzlement, and criminal conspiracy. The charges stem from allegations that Bankman-Fried funneled billions of dollars in customer assets from FTX to Alameda Research, a private trading firm he also controlled, to fund personal expenses and risky investments. The verdict comes after a yearlong saga that saw Bankman-Fried's estimated $26bn personal fortune wiped out when FTX filed for bankruptcy.
The trial has been closely watched by regulators, investors, and the crypto community for signs of a potential larger crackdown on the largely unregulated crypto market. The trial has also put a spotlight on the emerging industry of cryptocurrency and a group of young executives in their 20s who lived together in a $30 million luxury apartment in the Bahamas as they dreamed of becoming the most powerful player in a new financial field.
Bankman-Fried's defense argued that he was an inexperienced executive who made mistakes but did not intend to commit crimes. Despite this, the jury rejected Bankman-Fried's claim that he never committed fraud or intended to cheat customers before FTX collapsed into bankruptcy. His defense team plans to appeal the verdict.
Bankman-Fried's conviction marks one of the fastest and most spectacular falls from grace in modern corporate history. The charges against him include wire fraud, conspiracy, and money laundering, with a maximum sentence of 110 years. Bankman-Fried was accused of stealing up to $10 billion from customers for political contributions, venture capital investments, and other spending.
The trial has been closely watched by regulators, investors, and the crypto community for signs of a potential larger crackdown on the largely unregulated crypto market.
The trial has put a spotlight on the emerging industry of cryptocurrency and a group of young executives in their 20s who lived together in a $30 million luxury apartment in the Bahamas as they dreamed of becoming the most powerful player in a new financial field.