New York Jury Finds Sam Bankman-Fried Guilty As Charged

NEW YORK, Nov 3(On-Chain)–A 12-person New York jury, consisting of nine women and three men, has Thursday found the former FTX's founder Sam Bankman-Fried guilty of wire fraud,conspiracy and money laundering.

Sam Bankman-Fried first appeared before a federal court in New York earlier this year–following his extradition from the Bahamas last December–and elected to go on trial for the criminal charges filed against him in connection to the bankruptcy of FTX.

The monthlong fraud trial of the disgraced crypto figure, culminated in the first round of victory for the US Justice Department, with the Manhattan District court planning to hand down a harsh sentence in March 2024.

With the jury's Thursday verdict read by the presiding judge, Lewis A. Kaplan, the embattled former crypto billionaire Sam Bankman-Fried is now within an inch of being handed a lengthy prison sentence of up to 115 years. In March, the court will also decide whether he will face another series of charges.

Sam Bankman-Fried's defense attorney, Mark Cohen, issued an emailed statement shortly after the verdict was reached, saying that his client 'maintains his innocence and will continue to vigorously fight the charges against him'. This suggests that an appeal is likely.

Sam Bankman-Fried's criminal trial ended one year shy of the sudden collapse of FTX, his cryptocurrency exchange, which sent shock waves across the crypto industry and further damaged its already-tarnished reputation.

Barely a year ago, a CoinDesk report exposed the fraudulent state of FTX's finances, triggering a bank-run-like bankruptcy as millions of customers rushed to withdraw their deposits.

At the recently concluded trial, the prosecution dismantled the 'good faith' posturing Sam Bankman-Fried's defense attorney built his case upon by relying on the testimonies of his close associates, and pointing to the inconsistencies in his personal testimony to secure a guilty verdict.

"Bankman-Fried perpetrated one of the biggest financial frauds in American history,” Damian Williams, the U.S. attorney for the Southern District of New York, told reporters after the verdict.

 

“The cryptocurrency industry might be new; the players like Bankman-Fried might be new. But this kind of fraud, this kind of corruption, is as old as time” Williams added.