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fter a trial lasting five weeks, Sam Bankman-Fried, the ex-CEO of FTX, was convicted by a New York jury on all seven criminal counts he faced, ranging from wire fraud to money laundering. The verdict implicates him in what is considered one of the largest financial deceptions in U.S. history. A March 28, 2024, sentencing date awaits Bankman-Fried, with potential decades behind bars.
Damian Williams, the U.S. Attorney for the Southern District of New York, addressed the media after the conviction, denouncing Bankman-Fried’s actions as emblematic of historic corruption, declaring, “We have no patience for it.”
Not wasting any time on it, in a swift decision following just four hours of deliberation, the jury found him guilty on dual counts of wire fraud and conspiracy, in addition to charges of securities fraud, commodities fraud conspiracy, and money laundering conspiracy.
The presiding New York District Judge Lewis Kaplan will ultimately assign Bankman-Fried’s sentence. Each charge carries substantial prison time, with some holding a maximum of 20 years. The prosecutors will present their sentencing recommendations, but the final decision rests with Judge Kaplan.
Bankman-Fried’s defense, led by attorney Mark Cohen, responded to the unfavorable verdict, stating, “We respect the jury’s decision. But we are very disappointed with the result. Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him.”
The conviction was bolstered by testimonies from key FTX executives—Caroline Ellison, Gary Wang, and Nishad Singh—all of whom had already pleaded guilty to their respective charges and cooperated with the prosecution.
Throughout the trial, Bankman-Fried pleaded not guilty, striving to distance himself from the collapse of FTX in November 2022 and the ensuing fallout. He attributed the trading platform’s failure to errors, not deliberate fraud. Despite acknowledging oversight flaws, Bankman-Fried disavowed the deliberate misappropriation of funds, framing Alameda’s use of over $8 billion of FTX’s funds as loans rather than theft.
FTX’s downfall was precipitated nearly a year ago, following revelations of Alameda Research’s extensive holdings in FTX’s own exchange token, FTT. The disclosure and consequent actions, including those by Binance CEO Changpeng Zhao, triggered a loss of confidence resulting in bankruptcy filings for both FTX and Alameda Research, along with their affiliates.