Sam Bankman-Fried Found Guilty on All Criminal Charges

After a month-long trial, a 12-member jury in Manhattan federal court has convicted Sam Bankman-Fried (SBF) on all seven federal criminal charges related to the collapse of cryptocurrency exchange FTX. U.S. District Judge Lewis Kaplan has set SBF’s sentencing for March 28, 2024.

SBF Found Guilty of Defrauding FTX Customers 

The verdict, reached after 15 days of hearing testimony and four hours of deliberations on November 2, found SBF guilty of two counts of fraud and five counts of conspiracy. All charges were related to SBF’s role in the implosion of FTX.  

Federal prosecutors, last year, brought these charges against him on the grounds that he misappropriated billions of dollars in FTX customers’ deposits, leading up to the collapse of the exchange.

Having denied all wrongdoing despite testimonies from members of his inner circle, SBF could not prove that he did not defraud customers at the now-bankrupt crypto exchange during his own testimony in late October.  

In his testimony, SBF stated that he did not defraud FTX customers or misuse their funds but that affiliated hedge fund Alameda Research borrowed money from the exchange. 

Speaking on the verdict, top federal prosecutor Damian Williams said: 

“The crypto industry might be new, the players like Sam Bankman-Fried may be new, but this kind of fraud is as old as time and we have no patience for it.” 

SBF to Appeal Verdict 

SBF’s defense lawyer, Mark Cohen, expressed disappointment at the verdict but said he respects the decision.

“Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him,” he said.

With Cohen’s statements, SBF’s defense lawyers are expected to appeal the verdict.

Having been found guilty of two counts of fraud and five counts of conspiracy, SBF is expected to face decades in prison. However, this is only a speculation, as the sentencing of criminals could only be determined by the assigned judge.