Sam Bankman-Fried: FTX cryptocurrency exchange founder found guilty of defrauding customers
Sam Bankman Fried, founder of the now-defunct cryptocurrency exchange platform FTX, has been convicted of defrauding his customers
Same Bankman-Fried, the founder of the cryptocurrency exchange FTX, has been found guilty of defrauding his customers, with federal prosecutors describing the crime as one of the biggest frauds in US history.
Bankman-Fried, who had pleaded not guilty to two counts of fraud and five counts of conspiracy, was convicted by a jury following a trial in a Manhattan federal court, with the jury taking only a matter of hours of deliberation to return their decision. The FTX founder, 31, now faces decades in prison after he stole around $8 billion from users before the now-defunct platform collapsed in November 2022. His sentencing has been set for 28 March 2024.
According to prosecutors, Bankman-Fried spent the huge sum on investments, real estate and promotional material for FTX. He also spent the money on political contributions. He was arrested after being extradited from the Bahamas to the US in December 2022.
Federal prosecutor Damian Williams told reporters outside the Manhattan courthouse: "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."
Mark Cohen, Bankman-Fried's defence attorney, said that he and his client were "disappointed" by the decision. He said: "Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him."