Sam Bankman-Fried convicted in FTX fraud case, sentencing scheduled for March

Debodinna Chakraborty
Debodinna ChakrabortyNov 03, 2023 | 11:47

Sam Bankman-Fried convicted in FTX fraud case, sentencing scheduled for March

Bankman-Fried, was arrested following the bankruptcy of his firm, FTX. (Photo: Getty)

Sam Bankman-Fried, previously a leading figure in the cryptocurrency exchange world, has been convicted of fraud and money laundering after a month-long trial in New York.


The creator of FTX crypto exchange, Sam Bankman-Fried, was found guilty on Thursday (November 2) of fraud and conspiracy after a brief four-hour jury deliberation.

The verdict marks a stunning downfall for the 31-year-old former billionaire, once a prominent name in the crypto industry.


The details

  • Bankman-Fried, arrested in the wake of FTX's bankruptcy, now faces a potentially lengthy prison term.
  • He was charged with deceiving investors and embezzling billions from FTX, which led to the exchange's collapse.
  • Bankman-Fried faced seven counts related to fraud and money laundering.
“We respect the jury’s decision. But we are very disappointed with the result,”
- Mark Cohen, Fried's lead defence attorney in a statement.
  • A New York jury determined his involvement in a $10 billion fraudulent scheme.
  • Bankman-Fried maintained his innocence throughout the trial, admitting to mistakes while asserting good intentions.
  • His sentencing is scheduled for March 28, 2024.
“Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him.” 
- Mark Cohen, Fried's lead defence attorney in a statement.

The FTX fraud case

  • Amidst a series of criminal charges, Bankman-Fried's company's sudden downfall has been labeled one of the most significant financial fraud cases in US history.
  • Allegations claim that he misappropriated billions from FTX customers, redirecting these funds for personal gain, investments, and political contributions.
  • Prosecutors assert that FTX customer funds were moved to his crypto firm, Alameda Research, using user deposits and FTX's code, enabling substantial borrowing.
  • Following FTX's demise, three top executives admitted to fraud and agreed to aid the authorities in exchange for lighter sentences.
  • During the trial, they revealed that Bankman-Fried instructed them to deceive the public and transfer a significant amount of customer funds from FTX to Alameda Research.
Last updated: November 03, 2023 | 11:47
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