After a 15-day trial, a jury has found Sam Bankman-Fried (SBF), the founder and former CEO of FTX, guilty of seven counts of fraud and conspiracy. SBF is scheduled to be sentenced on March 28, 2024. His defense lawyers are expected to appeal the verdict.
SBF was charged with seven counts which includes conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, securities fraud, conspiracy to commit money laundering, money laundering and conspiracy to defraud the United States.
The evidence against SBF
The prosecutors presented evidence that SBF defrauded FTX customers and investors by misrepresenting the financial condition of FTX and its affiliated companies. The government also presented evidence that SBF used FTX customer funds to cover losses at his hedge fund, Alameda Research.
SBF’s defense argued that he did not commit fraud and that he was simply trying to save FTX and its customers. The defense also argued that SBF did not know that Alameda Research was losing money.
A milestone case for crypto industry
It is the first time that a major cryptocurrency executive has been convicted of fraud. The verdict could deter other cryptocurrency executives from engaging in fraudulent activities. SBF is scheduled to be sentenced on March 28, 2024. He faces up to 20 years in prison for each of the seven counts against him. His defense lawyers are expected to appeal the verdict.
The conviction of Sam Bankman-Fried is an unsettling scenario in the industry. It is a reminder that cryptocurrency executives are not above the law and that they can be held accountable for their actions.