Home » Crime and Fraud • US business news » FTX boss faces 115 year jail sentence for massive fraud

FTX boss faces 115 year jail sentence for massive fraud

By Nithya Bose in Crime and Fraud, posted November 3, 2023

Sam Bankman-Fried, once the king of crypto, has been found guilty of all seven criminal charges against him.

The 31-year-old founder of the fallen cryptocurrency exchange FTX is facing a potential maximum prison sentence of 115 years.

The charges include wire fraud, conspiracy to commit wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud, and conspiracy to commit money laundering.

Bankman-Fried had denied the charges, which were related to the collapse of FTX and sister hedge fund Alameda.

Damian Williams, the US attorney for the Southern District of New York, described Bankman-Fried's actions as "one of the biggest financial frauds in American history."

Attorney General Merrick Garland said: “Sam Bankman-Fried thought that he was above the law. Today’s verdict proves he was wrong.

“This case should send a clear message to anyone who tries to hide their crimes behind a shiny new thing they claim no one else is smart enough to understand: the Justice Department will hold you accountable.”

The trial featured testimonies from Bankman-Fried's former close associates and top lieutenants, pitted against their former boss and ex-roommate.

The jury reached a swift verdict after a short deliberation period.

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The guilty verdicts covered a range of charges and Bankman-Fried, who showed no visible emotion, now awaits sentencing.

Bankman-Fried "will vigorously fight the charges"

Bankman-Fried's attorney, Mark Cohen, said his client “maintains his innocence and will continue to vigorously fight the charges against him.”

The central question was whether Bankman-Fried knowingly acted with criminal intent when using customer funds for personal expenses and to cover losses at Alameda.

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Bankman-Fried's case has drawn comparisons to Elizabeth Holmes, the founder of Theranos.

She was convicted of defrauding investors and sentenced to over 11 years in prison.

Bankman-Fried's sentencing awaits, scheduled for March 28, while his second trial in March faces uncertainty as the government decides whether to proceed.

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