Digital Assets: Sam Bankman-Fried Found Guilty, Faces A Prison Sentence Of Upto 115 Years

November 3, 2023 | Digital Assets, Latest News, News

“While the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time.” – Damian Williams, U.S. attorney for the Southern District of New York.

Sam Bankman-Fried, the founder of FTX, has been found guilty of all seven criminal counts against him in a recent fraud trial. This verdict could potentially lead to a maximum prison sentence of 115 years.

The allegations encompass wire fraud and a conspiracy to engage in wire fraud concerning FTX customers and Alameda Research lenders, a conspiracy to commit securities fraud, a conspiracy to perpetrate commodities fraud targeting FTX investors, and a conspiracy to launder money. (CNBC)

Bankman-Fried, a 31-year-old with an impressive academic background, had pleaded not guilty to these charges, all of which were linked to the downfall of FTX and its sister hedge fund, Alameda, in late 2022. The prosecution’s case was built on the testimony of former associates and colleagues who had cooperated as witnesses.

The U.S. attorney for the Southern District of New York, Damian Williams, characterized this as one of the biggest financial frauds in American history, emphasizing that it represents an age-old pattern of corruption involving lying, cheating, and stealing.

According to Attorney General Merrick Garland the verdict sent a clear message that the Justice Department will hold individuals accountable for their actions, especially those who attempt to conceal their crimes behind new innovations.

The jury’s swift verdict marked the conclusion of a month-long trial that witnessed testimony from Bankman-Fried’s former friends and colleagues. Following the guilty verdicts, Bankman-Fried’s attorney announced his intent to continue vigorously fighting the charges.

The sentencing is scheduled for March 28, with another trial on March 11.

The case bears some similarities to the Elizabeth Holmes case, where the founder was convicted of defrauding investors, although the specifics differ.

Sam Bankman-Fried’s fate now hangs in the balance as he awaits his sentencing.

Related Story: FTX And Its Billionaire Owner Sam Bankman-Fried Being Investigated By Texas State Securities Board

Image Credit: Flickr

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