Sam Bankman-Fried, the former Chief Executive of FTX, was arrested in December over charges of fraud and conspiracy for misleading his investors and lenders while directing funds to a different route. In October, the trial began and went on for 5 weeks. Twelve New Yorkers have delivered a unanimous verdict, stating that SBF is guilty on seven counts of wire fraud and conspiracy.
He now faces a potential imprisonment of up to 115 years. A tentative sentencing date is set for March 28, 2024, per reports surfacing.
US Attorney Damian Williams has stated that SBF is responsible for one of the largest financial frauds in U.S. history, adding that they have no tolerance for a scam that is as old as time. Defense attorney Mark Cohen has declared his intention to contest the allegations against Bankman-Fried, adding that he holds the decision in the highest regard.
Sam, who is now 31 years old, was once the most renowned entrepreneur; his cryptocurrency exchange platform was lauded as an exceptionally innovative product. FTX subsequently initiated the bankruptcy process, while Bankman is currently facing the prospect of life imprisonment. There have been reports of approximately $8 billion in theft, with funds allegedly being used for illegitimate investments and purchases. Real estate, venture capital investments, and purchasing sponsorships are included.
The defense lawyer has argued that Sam is an overworked businessman who made the mistake of assuming that funds belonged to companies instead of investors or customers.
A statement like that could actually get him in more trouble, considering he has admitted there were significant oversights. He has also admitted to committing a number of mistakes, smaller and larger.
Making the matter worse for him is the fact that several FTX and Almeda Research executives have pleaded guilty already, further going on record to testify against Bankman-Fried. These include Gary Wang, Nishad Singh, and Caroline Ellison. Former employees also came forward to testify that it was Sam who was directing the operations of FTX.
Once more, SBF contended that he placed his confidence in meticulously selected lieutenants, presuming they would operate the enterprise securely. At the same time, he represented the company in public and advocated for legislators and regulators.
FTX’s bankruptcy scenario was one of the major factors that contributed to the crypto winter. The fall of the multibillion-dollar empire set the record straight: the cryptosphere has been in trouble for a long time. This was evident with the prices of BTC and ETH, two dominating cryptos, constantly declining.
They have found a way back, surpassing the resistance mark and securing a clean chit for a brighter and bullish future. Bitcoin is dancing around $34,513.07, and Ethereum is approximately at $1,800.22 at the time of articulating this piece. Simply put, the crypto market is looking to bounce back and leave the cold winters as far as possible.
FTX and Sam Bankman-Fried await the sentencing date.