Resounding trial for Sam Bankman-Fried: a verdict that causes a lot of noise
The trial of Sam Bankman-Fried, former CEO of cryptocurrency exchange FTX, ended yesterday with a highly anticipated verdict. Accused of fraud, criminal conspiracy and money laundering, Bankman-Fried was found guilty of all counts against him by a New York jury.
After several weeks of an intense trial, the verdict is in: Bankman-Fried now faces up to 110 years in prison. Federal Judge Lewis Kaplan will be responsible for pronouncing his sentence on March 28.
At the heart of the accusation is the fraudulent use of FTX client funds. Bankman-Fried allegedly misappropriated his clients’ deposits to finance the risky activities of his investment company, Alameda Research. The latter’s borrowings from FTX would have amounted to nearly $14 billion.
Manhattan federal prosecutor Damian Williams said Bankman-Fried orchestrated one of the largest financial frauds in U.S. history. He said it was a multibillion-dollar scheme designed to make Bankman-Fried the “king of crypto.”
The prosecution was able to rely on overwhelming evidence, including documents and testimonies from close associates of Bankman-Fried. The latter claimed to have acted under the orders of their former boss, highlighting his central role in the decisions that led to the misappropriation of client funds and reckless risk-taking by Alameda.
For his part, Bankman-Fried tried to plead good faith, presenting himself as a young, inexperienced entrepreneur rather than a criminal. He admitted to having made “big mistakes”, but always denied knowingly breaking the law.
Bankman-Fried’s conviction is a blow to the cryptocurrency industry. The bankruptcy of FTX, which occurred in November 2022, has already had significant consequences for the sector. Bankman-Fried, once considered a cryptocurrency star, now sees his reputation tarnished and his fortune plummeting.
This verdict also sends a strong message to crooks who think they are untouchable. Justice Minister Merrick Garland said Bankman-Fried thought he was above the law, but the verdict proved he was wrong.
Bankman-Fried will face a second trial next March, this time for bribery of a foreign official and illegal political donation. He is accused of paying bribes to Chinese officials amounting to approximately $150 million and of making donations from FTX client funds to politicians, including the presidential campaign. by Joe Biden.
This resounding trial highlights the issues and risks in the world of cryptocurrencies. Although this industry is relatively new, the risks of fraud and corruption are very real, as Damian Williams points out. He recalls that yesterday’s verdict is a warning to all those who think they are above the law and that the consequences can be serious.