Sam Bankman-Fried was found guilty on all seven charges of fraud, conspiracy and money laundering by a jury in New York on Thursday.
The fallen cryptocurrency superstar, known as SBF, faces up to 110 years in prison. He was accused of misusing clients’ funds from his digital currency exchange platform, FTX, which declared bankruptcy in November 2022.
These funds were channelled into high-risk transactions and investments made by his investment firm, Alameda Research. The amount borrowed from the platform reached a staggering $14 billion.
Assistant US Attorney Danielle Sassoon demanded a guilty verdict on Thursday morning. She portrayed Bankman-Fried as a talented and ambitious leader who enthralled the public, press, and even members of the US Congress, where he testified three times. Sassoon also pointed out his ambition to become US President.
Driven by his craving for success, he had aimed to make FTX the premier global cryptocurrency exchange platform, according to the Assistant US Attorney, who said his quest led him to recklessly use billions from his clients’ accounts to gain power and connections. He thought he could commit fraud and get away with it, she added.
At the hearing, SBF acknowledged “grave mistakes” but persistently denied knowingly breaching the law. His lawyer characterised him as a young, inexperienced entrepreneur who had acted in good faith.
The SBF case began a year ago when CoinDesk disclosed that a considerable portion of Alameda’s assets comprised a cryptocurrency created by FTX, known as FTT.
That revelation led to the collapse of the digital currency, subsequently toppling SBF’s empire.
