In a stunning fall from grace, Sam Bankman-Fried, the former CEO of the now-defunct crypto exchange FTX, was found guilty on all seven counts of fraud and conspiracy in a New York federal court on Thursday.
Bankman-Fried, once hailed as a wunderkind of the crypto industry, was accused of misleading investors and customers about the financial health of FTX. Prosecutors alleged that he used customer funds to prop up his own hedge fund, Alameda Research, and to make risky investments.
The jury deliberated for less than a day before reaching their verdict. Bankman-Fried faces up to 20 years in prison for each count of fraud. He is scheduled to be sentenced on February 13, 2024.
The outcome of the SBF trial is a major victory for the government and a significant setback for the crypto industry. It is also a warning to other crypto executives that they will be held accountable for their actions.
In a statement following the verdict, US Attorney Damian Williams said, “Sam Bankman-Fried built a house of cards on a foundation of deception and fraud. Today, that house of cards has collapsed.”
Williams added, “This verdict is a powerful message to anyone who thinks they can commit fraud and get away with it: you will be caught, you will be prosecuted, and you will be punished.”
Bankman-Fried’s defense team said they were disappointed with the verdict and planned to appeal.
The SBF trial is the latest in a string of high-profile prosecutions of crypto executives. It is a sign that the government is taking the crypto industry seriously and is willing to prosecute those who violate the law.
