Founder of crypto exchange FTX found guilty of billions in fraud

Sam Bankman-Fried, the founder and former CEO of crypto exchange FTX, has been found guilty of stealing $8 billion. It is not yet known what the sentence will be against Bankman-Fried. The judge will determine this on March 24, 2024.

The jury in the federal court in Manhattan found Bankman-Fried guilty on all counts, writes, among other things Reuters Friday. There were a total of seven charges: two charges of fraud and five of conspiracy.

The $8 billion that the former CEO stole from his clients was funneled to his investment fund Alameda Research. When this came to light, Bankman-Fried decided to sell FTX-linked tokens in November last year. Subsequently, many customers tried to get their money back, which exposed FTX’s lack of liquidity. Shortly afterwards, FTX filed for bankruptcy and was found to have committed large-scale fraud. A month later, the former CEO was arrested in the Bahamas.

Bankman-Fried still denies stealing money from customers. He says he thought Alameda Research was allowed to borrow money from FTX and didn’t realize how high the debt had become until both companies were on the brink of collapse. The former CEO will contest the ruling. He could receive a prison sentence of up to 110 years, but the exact sentence will be determined in March.