The former FTX CEO was found guilty of seven counts of fraud in Manhattan Federal Court. The Court concluded that Sam Bankman-Fried committed “one of the largest financial frauds in American history.” Sam Bankman-Fried faces a sentence of up to 115 years in prison and the sentence would be handed down on March 28, 2024.
The Manhattan Court, led by Judge Lewis Kaplan, found the former CEO of FTX, Sam Bankman-Fried, guilty of seven criminal charges. After a four-hour trial, SBF was charged with seven counts, including: wire fraud, securities fraud and money laundering.
The federal judge in Manhattan found that the former FTX CEO defrauded his clients as well as the lenders of the affiliated hedge fund, Alameda Research. The jury concluded that Sam Bankman-Fried “perpetuated one of the largest financial frauds in American history.”
FTX: Sam Bankman-Fried Will Receive Sentence for Fraud in March 2024
Although the ruling against SFB was foreseeable, the former CEO of FTX had been working on his defense for months, with which he had gained time. Hours before, he assured that he was unaware of the company’s situation and now explained that he “did not remember” what happened in those last months.
Sam Bankman-Fried faces up to 115 years in prison after being found guilty on the afternoon of November 2. His sentence would be handed down on March 28, 2024.
Sam Bankman-Fried: The End of FTX and One of the “Biggest Frauds in US History”
Former Alameda Research CEO Caroline Ellison, exchange co-founder Gary Wang and FTX chief technology officer Nishad Singh have previously pleaded guilty. They had been testifying and cooperating with the prosecution for weeks to hold Sam Bankman-Fried accountable.
The Manhattan Court began hearing the Bankman-Fried case at 3:15 p.m. and by 7:37 p.m. it already had the verdict. Those present in the room saw Judge Lewis Kaplan and SBF standing, while the former handed down the sentence and the latter looked straight ahead without flinching.
Upon sentencing, Damian Williams, US Attorney for the Southern District of New York, issued the following to the press:
“Sam Bankman-Fried perpetrated a multimillion-dollar scheme designed to make him the king of cryptocurrencies. “This type of fraud, this type of corruption, is as old as time and we have no patience for it.”
Since FTX’s bankruptcy in November 2022, SBF pulled off all sorts of legal feats to avoid facing authorities while the exchange faced an $8 billion shortfall in customer funds. Meanwhile, Bankman-Fried was accused with evidence of using that money to buy real estate, making political donations and doing philanthropic actions.
Sam Bankman-Fried Verdict Impacts Cryptocurrency Market
According to CNBC, during the trial, prosecutors called 16 witnesses, while the defense only called three. In the final moments of the trial, Judge Lewis Kaplan lost patience with Bankman-Fried and ordered him to “answer the questions that were put to him.”
The news impacted the crypto market, as FTX’s native token, FTT, plummeted after the verdict was announced, falling 2.1%, going from $1.29 to $1.23. It was not the only one to fall: Bitcoin fell 2.8% after hearing the news, going from $35,101 to $34,589 on the night of November 2, according to data from CoinGecko.
Among other cryptocurrencies that fell were: Ethereum (ETH), Ripple (XRP), Solana (SOL), TRON and Polygon (MATIC) had losses of 3.2%, 2.2%, 8.7%, 2% and 4.2%, respectively. However, Cardano (ADA) was the only one to emerge unscathed from the market crash, with a gain of 2.9%.
By Audy Castaneda
