FTX's Sam Bankman-Fried Found Guilty On Charges Related To Crypto Exchange Collapse

A New York jury in Manhattan federal court Thursday, found FTX founder Sam Bankman-Fried(SBF) guilty on charges related to the collapse of his now-bankrupt cryptocurrency exchange in the first of two criminal trials against the former CEO. The seven charges include, two counts of wire fraud and five conspiracy counts. The 31-year-old is facing a maximum sentence of 110 years behind bars. Presiding Judge Lewis Kaplan, set a sentencing hearing for the morning of March 28.

The court agreed with prosecutors that SBF, who founded and controlled both FTX and sister hedge fund Alameda research, defrauded investors, customers and lenders of billions of dollars in FTX customer deposits, schemed to mislead investors, and instructed other executives at his businesses to do the same.

SBF's counsel Mark Cohen said in a statement after the conviction was announced that the defense is "very disappointed in the result" and signaled that they will likely appeal the verdict, adding that "Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him."

"Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history," U.S. Attorney for the Southern District of New York Damian Williams said after the verdict was announced. "The cryptocurrency industry might be new. The players, like Sam-Bankman-Fried, might be new. But this kind of corruption is as old as time."

The FTX founder capitalized on a rise in bitcoin and other digital assets to accumulate an estimated net worth of $26 billion and became an influential political and philanthropic donor before FTX declared bankruptcy in November 2022.

In addition to the fraud and conspiracy charges, SBF is accused of violating campaign finance laws by using FTX customer funds to make billions in political donations through an illegal straw-donor scheme, and for allegedly bribing Chinese officials.

The second criminal trial against SBF is slated to begin in March 2024. He has pleaded not guilty to all charges against him.