Ex-FTX CEO Sam Bankman-Fried Convicted on Seven Criminal Charges
Summary:
Former FTX CEO Sam Bankman-Fried has been convicted on seven counts, including wire fraud and securities fraud, by a New York jury. Charges combined could lead to a maximum prison sentence of 110 years. Other ex-FTX executives have pleaded guilty, cooperated with the government, and testified against Bankman-Fried. Despite these charges, Bankman-Fried maintained his innocence, attributing FTX's 2022 collapse to "several major errors" and distancing himself from key decisions, including questionable activities involving Alameda.
Ex-FTX Chief Sam Bankman-Fried is officially convicted by a New York jury on all seven allegations in his criminal case. The charges involve two instances each of wire fraud and conspiracy to commit wire fraud, along with a single count of securities fraud, conspiracy to commit commodities fraud, and conspiracy to commit money laundering. A future court date has been set for sentencing by District Judge Lewis Kaplan of New York. The potential duration of Bankman-Fried's prison sentence could extend to a whopping 110 years if convicted on all counts with charges of wire fraud, conspiracy to commit wire fraud and money laundering conspiracy coming with a maximum sentence of 20 years. Other top figures from FTX, such as former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and ex-FTX Engineer-in-Charge Nishad Singh, have admitted guilt to respective charges and cooperated with authorities by providing testimony against Bankman-Fried. Related: Bankman-Fried allegedly used coarse language about regulators in private, according to a report. Despite the serious charges, Bankman-Fried consistently maintained his innocence, pleading not guilty throughout his trial and attributing the 2022 collapse of FTX to "several major errors". He refuted any misconduct associated with FTX’s interaction with Alameda and tried to distance himself from critical decisions. Bankman-Fried allocated the blame to Wang for devising a feature that permitted Alameda to trade on FTX without the required funds, and expressed uncertainty over the drastic increase in Alameda’s credit line, which soared into the billions amidst 2022's tumultuous crypto market. Related: The fall of Mt. Gox led to the formation of Chainalysis – the blockchain detectives. Further details will be provided as this evolving story continues. Supplemental updates by Ana Paula Pereira.
Published At
11/3/2023 12:03:33 AM
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