Sam Bankman-Fried convicted on all charges laid against him. Image credit: Cointelegraph, Wikimedia Commons
FTX founder Sam Bankman-Fried was found guilty of defrauding customers of his cryptocurrency exchange in one of the biggest financial crime cases in the United States.
The 12-person jury reached a guilty verdict on all charges laid against him on Thursday in Manhattan.
The charges broadly cover fraud and conspiracy to commit fraud and money laundering, resulting in the 31-year-old facing a maximum of 115 years in prison.
During the month-long trial, prosecutors argued that he stole $US8 billion ($12.4 billion) from his customers to use for his crypto-focused hedge fund, Alameda Research.
Bankman-Fried has maintained his innocence since his arrest late last year, following the collapse of FTX.
He claimed that while he made mistakes operating FTX, he did not steal customer funds.
“We thought that we might be able to build the best product on the market,” testified Bankman-Fried.
“It turned out basically the opposite of that.”
Prosecutor Danielle Sassoon claimed that Bankman-Fried “thought he could get away with it”.
“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,” Sassoon told the jury.
The conviction represents a victory for the US Department of Justice and federal prosecutor Damian Williams.
“Sam Bankman-Fried perpetrated one of the biggest frauds in American history, a multibillion-dollar scheme designed to make him the king of crypto,” said Williams.
“Here’s the thing: the cryptocurrency industry might be new. The players like Sam Bankman-Fried might be new. This kind of fraud, this kind of corruption, is as old as time, and we have no patience for it.”
Following the verdict, defence attorney Mark Cohen said in a statement that Bankman-Fried “maintains his innocence and will continue to vigorously fight the charges against him.”
The sentencing hearing is set for 28 March 2024.
Bankman-Fried may also face a second trial next year for additional charges including brank fraud and conspiracy to commit foreign bribery.
He is expected to remain in custody in Brooklyn until sentencing.
