Crypto convict: Bankman-Fried will spend decades in jail
investmentnews.comSam Bankman-Fried was convicted of a massive fraud that led to the collapse of his FTX exchange, following a month-long trial that pitted the testimony of the former crypto king against that of some of his closest friends.
Bankman-Fried was found guilty of seven counts of fraud and conspiracy after jurors in Manhattan deliberated for less than five hours Thursday. He faces as much as 20 years in prison on each of the most serious charges. Judge Lewis Kaplan set a sentencing date in March.
The verdict is a win for Manhattan US Attorney Damian Williams in the highest-profile criminal prosecution in the crypto world. It also caps a spectacular fall for Bankman-Fried from early 2022 when FTX was valued at $32 billion and celebrities including Tom Brady, Larry David and Steph Curry were paid to urge people to trade digital currency on the platform.
Bankman-Fried “perpetrated one of the biggest financial frauds in American history,” Williams said after the verdict. “A multibillion dollar scheme designed to make him the King of Crypto.”
Crypto markets dipped after the verdict but the losses were mostly contained. Some industry proponents said the conviction underscored the end of an era of risky and wrongful practices, pointing to a more regulated future with wider adoption of digital assets. Others argued the verdict confirmed crypto as a sector riven with weaknesses that attract criminals, hackers and rogue states.
Prosecutors said Bankman-Fried directed the transfer of FTX customer money into Alameda Research, an affiliated hedge fund, for risky investments, political donations and expensive real estate before both companies collapsed into bankruptcy last year.
Bankman-Fried was standing, holding his hands in front of him
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