Nearly one year since FTX filed for bankruptcy, founder Sam Bankman-Fried has been found guilty in a Manhattan federal court.
Sam Bankman-Fried has been convicted for all seven counts he faced – two counts of fraud and five counts of conspiracy – by a 12-member jury in a Manhattan federal court, according to an «AFP» report. Defense lawyers of the fallen crypto exchange FTX’s founder are expected to appeal the verdict.
According to prosecutors, Bankman-Fried siphoned money from FTX to crypto-focused hedge fund Alameda Research to pay creditors and issue loans to himself as well as other executives for speculative investments and political donations. At the same time, he claimed on social media and television ads that the exchange prioritized the security of client funds. Separately, three former members of his inner circle also testified against him.
SBF Defense
In his defense, Bankman-Fried claims he did not steal funds and had merely made mistakes while running FTX, such as not forming a risk management team. He also said he thought Alameda’s borrowing from FTX was allowed and did not realize the size of the ballooning debt until shortly before the collapse.
If delivered the maximum sentence, the 31-year old Bankman-Fried could face more than 100 years in prison.
