December 9, 2023


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FTX founder Sam Bankman Freed pleaded responsible, going through greater than 100 years in jail

3 min read
Sam Bankman-Fried leaves a Manhattan federal court

Sam Bankman-Fried, founding father of cryptocurrency trade FTX, was discovered responsible Thursday of seven counts of fraud and conspiracy that carry a most penalty of 110 years in jail.

In the course of the month-long trial, Bankman-Fried testified within the US District Courtroom for the Southern District of New York that spanned three days. At one level throughout his time on the platform, the disgraced 31-year-old mogul testified that he believed his cryptocurrency firm would fail.

“I assumed there was possibly a 20 % probability of success,” Bankman-Fried testified.

He additionally mentioned that he knew “principally nothing” about cryptocurrencies earlier than founding FTX in 2019.

Nonetheless, Bankman-Fried pleaded not responsible to all seven counts of fraud and conspiracy. Prosecutors argued that he and others concerned in FTX’s operations defrauded shoppers of as much as $10 billion to cowl losses and repay loans owed by its sister fund, Alameda Analysis.

Sam Bankman Fried leaves Manhattan Federal Court
Sam Bankman-Fried, former CEO of FTX, leaves Manhattan Federal Courtroom in New York Metropolis on January 3, 2023. He was discovered responsible on Thursday of seven counts of fraud and conspiracy, defrauding cryptocurrency customers of as much as $10 billion.
Pictures by Ed Jones/AFP by way of Getty Pictures

The testimony of Carolyn Ellison, Bankman-Fried’s ex-girlfriend and former CEO of Alameda, obtained important media consideration. She informed the courtroom that Bankman Fried ordered her to steal billions of {dollars} from shoppers to cowl losses and money owed owed by the sister fund.

Bankman-Fried was accused of bullying Ellison throughout her testimony by taunting and shaking his head.

At one time, FTX was seen as a expertise success story. The corporate has loved excessive profile with commercials that includes stars resembling soccer legend Tom Brady and comic Larry David. Nonetheless, the corporate collapsed in November 2022, and Bankman-Fried was arrested the next month within the Bahamas earlier than being extradited to the US.

“His crimes have been uncovered,” Assistant U.S. Legal professional Danielle Sasson informed the jury Thursday, in keeping with the Related Press, which additionally reported that U.S. Legal professional Damian Williams informed the media after the sentencing that Bankman is exclusive: “His crimes have been uncovered. “He dedicated one of many largest monetary frauds in American historical past, a multibillion-dollar scheme designed to make him the king of cryptocurrencies.”

“However here is the factor: The cryptocurrency trade could also be new. Gamers like Sam Bankman Fried could also be new. This type of fraud and this sort of corruption is as outdated as time and we have now no persistence for it,” he added.

Bankman-Fried’s legal professional mentioned in a press release that whereas they revered the jury’s resolution, they have been “extraordinarily disillusioned with the end result.”

Newsweek I reached out to Bankman-Fried’s legal professional by way of electronic mail for additional remark Thursday evening.

Choose Louis A. decided Kaplan has a sentencing date of March 28, and Bankman-Fried is anticipated to enchantment the ruling.