Sam Bankman-Fried Convicted of Fraud in FTX Collapse, May Face 110-Year Prison Term

Sam Bankman-Fried, founder and former CEO of FTX, has been found guilty of all seven charges brought against him by federal law enforcement authorities in a Manhattan Federal Court on Thursday, November 2, 2023.

After a month-long, the 12-man jury gave a verdict finding Bankman-Fried guilty of charges including wire fraud, securities fraud, commodities fraud, and money laundering.

During the month-long trial preceding the verdict, Bankman-Fried took the stand and testified to defend himself and prove his innocence. He admitted to “making mistakes” while running the crypto exchange but never once planned to defraud its investors or customers.

Now, Bankman-Fried faces a maximum prison sentence of 110 years. Judge Lewis Kaplan, the presiding judge in the lawsuit, has scheduled his sentencing for March 28, 2024.

Meanwhile, Bankman-Fried will go on trial again in that same Mach over a second set of charges brought by federal authorities earlier in the year. The new charges include allegations of involvement in foreign bribery and bank fraud conspiracies.

This verdict comes exactly a year after FTX filed for bankruptcy and Bankman-Fried resigned as CEO of the exchange. He was later arrested and extradited from the Bahamas to the U.S. the following month.

Before its dramatic fall, FTX was the world’s fourth-largest cryptocurrency exchange. However, it was revealed that the company had secretly lent billions of dollars in customer assets to the exchange’s sister trading firm, Alameda Research. These funds were used to speculate on other cryptocurrencies without the authorization of FTX customers in a scheme that eventually crumbled and left the customers facing significant losses.

Bankman-Fried is expected to appeal the verdict. His attorney, Mark Cohen, expressed disappointment with the outcome, saying,

“We respect the jury’s decision. But we are very disappointed with the result. Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.”