{"id":40916,"date":"2023-11-03T00:10:03","date_gmt":"2023-11-03T00:10:03","guid":{"rendered":"https:\/\/prosfunds.com\/business\/sam-bankman-fried-convicted-over-ftxs-collapse\/"},"modified":"2023-11-03T00:10:03","modified_gmt":"2023-11-03T00:10:03","slug":"sam-bankman-fried-convicted-over-ftxs-collapse","status":"publish","type":"post","link":"https:\/\/prosfunds.com\/?p=40916","title":{"rendered":"Sam Bankman-Fried convicted over FTX\u2019s collapse"},"content":{"rendered":"<div>\n<p>Unlock the Editor\u2019s Digest for free<\/p>\n<p class=\"article__content-sign-up-topic-description\"><span>Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.<\/span><\/p>\n<p><iframe class=\"article__content-sign-up-iframe close\" scrolling=\"no\" id=\"signUpIframe\" data-prev-url=\"\/register\/in-article-sign-up?ft-content-uuid=24d153b0-0c28-4946-acbe-2e93329bca52\"><\/iframe><\/div>\n<div id=\"article-body\">\n<p>FTX founder Sam Bankman-Fried was convicted of fraud and money laundering by a New York jury in a landmark criminal verdict that is likely to condemn the former crypto tycoon to years in prison and bolster US authorities\u2019 attempts to bring an unruly financial sector to heel.<\/p>\n<p>The verdict in the highest-profile cryptocurrency-related trial to date was delivered on Thursday evening, following less than five hours of deliberation by the jury\u2019s nine women and three men over seven charges including wire fraud and conspiracy to commit money laundering. He was convicted on all counts. <\/p>\n<p>The culmination of the trial comes almost exactly a year after FTX fell into bankruptcy after being unable to honour withdrawal requests from thousands of customers spooked by a market downturn and damaging revelations about the exchange\u2019s opaque financial structures.<\/p>\n<p>Bankman-Fried, known for his unruly hair and cargo shorts, courted celebrities, was once welcomed at the White House and on Capitol Hill and secured billions of dollars in investment during his brief tenure as the public face of the nascent cryptocurrency industry.<\/p>\n<p>The 31-year-old was accused by prosecutors last December of orchestrating \u201cone of the biggest financial frauds in American history\u201d on the FTX exchange\u2019s customers and investors, as well as lenders to his affiliated hedge fund Alameda Research.<\/p>\n<p>Both businesses had collapsed weeks earlier, after an $8bn hole was uncovered in FTX\u2019s balance sheet and millions of customers were prevented from withdrawing their funds.<\/p>\n<p>John Ray, the insolvency expert who took over FTX when it filed for bankruptcy, said the \u201ccomplete absence of trustworthy financial information\u201d was worse than Enron, whose bankruptcy he previously oversaw.\u00a0<\/p>\n<p>Bankman-Fried could still face further charges in a trial tentatively scheduled for March, on allegations including bribery of foreign officials and campaign finance violations.<\/p>\n<p>The guilty verdict comes after Bankman-Fried took the rare decision to testify in his own defence during the month-long trial. He spent more than two days on the witness stand, during which he admitted to jurors that he made \u201cmistakes\u201d while running FTX but denied defrauding the exchange\u2019s customers and investors.<\/p>\n<p>The former paper billionaire said he first became aware of the hole in FTX\u2019s balance sheet a month before its implosion, and that he had delegated responsibility for coding and risk management to subordinates such as Caroline Ellison, Gary Wang and Nishad Singh, all of whom pleaded guilty to fraud last year and testified against their former boss.<\/p>\n<p>The jury, which included a social worker, a high school librarian and a retired corrections officer, heard from prosecutors on Wednesday that Bankman-Fried \u201cschemed and lied to get money\u201d from the early days of his entrepreneurship, and thought he was smart enough to avoid being caught. They argued Bankman-Fried\u2019s tendency to set messages sent between FTX and Alameda executives to auto delete proved \u201che was guilty\u201d, and urged jurors to \u201clet the evidence prevail over his storytelling\u201d.\u00a0<\/p>\n<p>Lawyers for Bankman-Fried contested that their client was a \u201cmath nerd\u201d painted as a villain by prosecutors who had not proven that he acted with criminal intent.<\/p>\n<p>\u201cNo witness has come forward and said Sam told them\u2009.\u2009.\u2009.\u2009to commit crimes,\u201d Mark Cohen said. \u201cIn the real world people misjudge things, they make mistakes.\u201d<\/p>\n<p>Bankman-Fried, who will appeal against the verdict, will be sentenced March 28. He would face more than 100 years in prison if he receives the maximum on all counts on which he was convicted. <\/p>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.ft.com\/content\/24d153b0-0c28-4946-acbe-2e93329bca52\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Unlock the Editor\u2019s Digest for free Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter. FTX founder Sam Bankman-Fried was convicted of fraud and money laundering by a New York jury in a landmark criminal verdict that is likely to condemn the former crypto tycoon to years in prison and [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[23],"tags":[],"class_list":{"0":"post-40916","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Sam Bankman-Fried convicted over FTX\u2019s collapse | Prosfunds<\/title>\n<meta name=\"description\" content=\"Unlock the Editor\u2019s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.FTX founder Sam Bankman-Fried\" \/>\n<meta name=\"robots\" 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