Former cryptocurrency entrepreneur Sam Bankman-Fried has been convicted in a fraud case. Jurors in New York found him guilty on seven counts, American media reported from the courtroom on Thursday (local time). The verdict will be decided later. Bankman-Fried faces decades in prison – in the worst case, it could be more than 100 years in prison.
The jury only took about five hours to make their decision after the prosecution and defense completed their closing arguments. The former star entrepreneur himself testified in the trial, but according to observers did not make a convincing figure.
FTX investors lost billions
Bankman-Fried became known worldwide as the founder of the cryptocurrency exchange FTX, which collapsed spectacularly a year ago. The US judiciary accuses the 31-year-old of siphoning off 14 billion dollars (about 13.1 billion euros) from the assets of FTX clients without their knowledge, including for high-risk transactions by his hedge fund Alameda Research Finance.
When these deals went south, FTX also found itself in the vortex. According to the indictment, Bankman-Fried allegedly arranged for Alameda to borrow money from FTX without providing the usual collateral. He himself shrugged off responsibility in court and referred to the decisions of others.
Heavily burdened by companions
Bankman-Fried was heavily criticized during the trial by former close colleagues such as Alameda boss Caroline Ellison. He himself said in court that he only partially understood the financial situation of his companies. He was “very surprised” by the extent of the problems when he learned in October 2022 that Alameda Research had about $8 billion in debt to FTX.
Before its collapse, FTX was one of the largest trading platforms for cryptocurrencies such as Bitcoin. In December, Bankman-Fried was arrested in the Bahamas. FTX had its headquarters there.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
