Sam Bankman-Fried guilty of defrauding FTX crypto customers out of billions of dollars | US News
The spectacular downfall that shocked the cryptocurrency world is full after FTX’s founder is discovered guilty of an enormous fraud and faces the prospect of the remainder of his life in jail.
By Dan Cairns, information reporter
Sam Bankman-Fried has been discovered guilty of defrauding customers of his cryptocurrency change out of billions of dollars.
The 31-year-old could possibly be sentenced to greater than 100 years in jail after stealing cash from shoppers of FTX.
A Manhattan jury convicted him on all seven counts after a month-long trial.
FTX collapsed final November, stunning monetary markets and wiping out the crypto tycoon’s estimated $26bn (£21bn) fortune.
He was arrested within the Bahamas in December and extradited to the US.
Bankman-Fried – who pleaded not guilty to 2 counts of fraud and 5 of conspiracy – clasped his arms collectively as the decision was delivered.
He admitted “mistakes” in operating FTX when he testified final week, however denied stealing not less than $10bn of his customers’ cash.
Prosecutors claimed he used the funds for dangerous bets at his hedge fund Alameda Research – with an enormous monetary black gap rising when crypto markets fell sharply.
FTX abruptly halted withdrawals final November and crypto’s second-largest change – with greater than one million customers – went bankrupt.
Bankman-Fried’s fall from grace has seen him in comparison with well-known monetary fraudsters Bernie Madoff and ‘Wolf of Wall Street’ Jordan Belfort.
“He didn’t bargain for his three loyal deputies taking that stand and telling you the truth: that he was the one with the plan, the motive and the greed to raid FTX customer deposits – billions and billions of dollars – to give himself money, power, influence,” prosecutor Danielle Sassoon informed the jury.
“He thought the rules did not apply to him. He thought that he could get away with it.”
Alameda’s former CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh pleaded guilty and gave proof in opposition to Bankman-Fried final month.
They mentioned he informed them to assist Alameda loot funds from FTX and misinform lenders and buyers.
The defence claimed the trio had falsely implicated him to get a lighter sentence, however after their testimony Bankman-Fried took the calculated danger to present proof.
He admitted making a mistake by not having a devoted danger administration group, however claimed he thought Alameda’s borrowing from FTX was allowed.
He informed the jury he didn’t realise how huge the money owed had change into till simply earlier than each companies collapsed.
Read extra from Sky News:
Bankman-Fried guilty – and crypto might by no means get well
How FTX founder went from £21bn empire to jail
The son of Stanford regulation professors, and an MIT graduate himself, Bankman-Fried was recognized for his distinctive curly hair and informal costume – in addition to mixing with celebrities.
His trial even heard that he believed he had an opportunity of at some point turning into US president.
Bankman-Fried had been in custody since August after the choose mentioned he had most likely tampered with witnesses and revoked his $250m bail.
He can be sentenced on 28 March 2024.
