By Dan Cairns, news reporter
Friday 3 November 2023 08:48, UK
Sam Bankman-Fried has been found guilty of defrauding customers of his cryptocurrency exchange out of billions of dollars.
The 31-year-old could be sentenced to more than 100 years in prison after stealing money from clients of FTX.
A Manhattan jury convicted him on all seven counts after a month-long trial.
FTX collapsed last November, shocking financial markets and wiping out the crypto tycoon's estimated $26bn (21bn) fortune.
He was arrested in the Bahamas in December and extradited to the US.
Bankman-Fried - who pleaded not guilty to two counts of fraud and five of conspiracy - clasped his hands together as the verdict was delivered.
He admitted "mistakes" in running FTX when he testified last week, but denied stealing at least $10bn of his customers' money.
Prosecutors claimed he used the funds for risky bets at his hedge fund Alameda Research - with a huge financial black hole emerging when crypto markets fell sharply.
FTX abruptly halted withdrawals last November and crypto's second-largest exchange - with more than a million customers - went bankrupt.
Bankman-Fried's fall from grace has seen him compared to well-known financial fraudsters Bernie Madoff and 'Wolf of Wall Street' Jordan Belfort.
"He didn't bargain for his three loyal deputies taking that stand and telling you the truth: that he was the one with the plan, the motive and the greed to raid FTX customer deposits - billions and billions of dollars - to give himself money, power, influence," prosecutor Danielle Sassoon told the jury.
"He thought the rules did not apply to him. He thought that he could get away with it."
Bankman-Fried built 'pyramid of deceit'
He was the mop-haired, cargo short-wearing darling of the crypto world.
Sam Bankman-Fried build the FTX cryptocurrency exchange into a business valued at $32bn.
There were flash TV ads featuring basketball icon Steph Curry and actor Larry David. Tennis star Naomi Osaka wore FTX branded gear and the company logo adorned the stadium of the Miami Heat.
FTX was huge and Sam Bankman-Fried rode high on excess.
Home was a $35m property in the Bahamas, a place where he knew the neighbours - FTX spent $300m buying up vacation properties on the island nation for company staff.
But it was success built on fraudulent foundations.
In the words of the prosecution, Bankman-Fried built a "pyramid of deceit" and treated FTX as his own personal piggy bank, defrauding customers out of more than $10bn.
The consequences of his arrest have since reverberated through the crypto world - other firms have collapsed and there has been a tightening in regulation.
Bankman-Fried's defence lawyers argued that the 31-year-old was simply a "math nerd" who never set out to break the law and was a victim of circumstances beyond his control.
He is the math nerd who can count on a lengthy stay in prison.
Alameda's former CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh pleaded guilty and gave evidence against Bankman-Fried last month.
They said he told them to help Alameda loot funds from FTX and lie to lenders and investors.
The defence claimed the trio had falsely implicated him to get a lighter sentence, but after their testimony Bankman-Fried took the calculated risk to give evidence.
He admitted making a mistake by not having a dedicated risk management team, but claimed he thought Alameda's borrowing from FTX was allowed.
He told the jury he did not realise how big the debts had become until just before both firms collapsed.
Read more:Why industry may never recover from spectacular downfall of 'crypto king'How FTX founder went from 21bn empire to jail
The son of Stanford law professors, and an MIT graduate himself, Bankman-Fried was known for his distinctive curly hair and casual dress - as well as mixing with celebrities.
His trial even heard that he believed he had a chance of one day becoming US president.
This is a limited version of the story so unfortunately this content is not available. Open the full version
Bankman-Fried had been in custody since August after the judge said he had probably tampered with witnesses and revoked his $250m bail.
He will be sentenced on 28 March 2024.
See the article here:
Sam Bankman-Fried guilty of defrauding FTX crypto customers out of billions of dollars - Sky News
- Richmond man charged in $10 million cryptocurrency home invasion theft - Vancouver Sun - November 24th, 2023 [November 24th, 2023]
- DOJ Seizes Nearly $9M Worth of Cryptocurrency Tied to Scammers - MarketWatch - November 24th, 2023 [November 24th, 2023]
- United States Files Forfeiture Action to Recover Cryptocurrency ... - Department of Justice - November 24th, 2023 [November 24th, 2023]
- Cryptocurrency rebounds with strong gains on Thanksgiving 2023 ... - Investing.com - November 24th, 2023 [November 24th, 2023]
- Exploring the Pros and Cons of Government and Institutional ... - Artvoice - November 24th, 2023 [November 24th, 2023]
- Top Crypto That Can Surprise You With Growth This Week - Analytics Insight - November 24th, 2023 [November 24th, 2023]
- The Importance of Cryptocurrency Security: Understanding Risks ... - Artvoice - November 24th, 2023 [November 24th, 2023]
- We are all tech lawyers now the future of cryptocurrency - Law Society Journal - November 24th, 2023 [November 24th, 2023]
- Bitcoin Recovers Strongly as Ethereum Leads Cryptocurrency ... - Proactive Investors USA - November 24th, 2023 [November 24th, 2023]
- Bitcoin in Bundestag: Germany's Bold Leap into Cryptocurrency Recognition - Finance Magnates - November 24th, 2023 [November 24th, 2023]
- Cryptocurrency Optimism's Price Increased More Than 4% Within 24 ... - Investing.com UK - November 24th, 2023 [November 24th, 2023]
- Bitcoin in 2024 how will the cryptocurrency fare next year and ... - Luxury Lifestyle Magazine - November 24th, 2023 [November 24th, 2023]
- Raiffeisenlandesbank to launch Bitcoin trading in early 2024 - Cointelegraph - November 24th, 2023 [November 24th, 2023]
- If Cryptocurrency Exchanges Want To Operate In U.S. they must ... - Tekedia - November 24th, 2023 [November 24th, 2023]
- New Crypto Coins and High Growth Cryptocurrency | Analysis of ... - Analytics Insight - November 24th, 2023 [November 24th, 2023]
- What Is Solana? How Does It Work? Forbes Advisor INDIA - Forbes - November 24th, 2023 [November 24th, 2023]
- Examining the Latest Cryptocurrency Poised for Exponential Growth ... - Analytics Insight - November 24th, 2023 [November 24th, 2023]
- David Sovka: A primer on cryptocurrency, aka a fool and his money are soon parted - Times Colonist - November 20th, 2023 [November 20th, 2023]
- Bitcoin falls 4.94% to $36007 - Reuters - November 20th, 2023 [November 20th, 2023]
- Cryptocurrency market retreats after recent rally, Bitcoin and Ethereum slip By Investing.com - Investing.com - November 20th, 2023 [November 20th, 2023]
- The Impact of Cryptocurrency on Gaming: The Evolution of Virtual ... - FingerLakes1.com - November 20th, 2023 [November 20th, 2023]
- Three Men Arrested For Complex Bank Fraud And Cryptocurrency ... - Department of Justice - November 20th, 2023 [November 20th, 2023]
- Crypto Safe: How To Move Cryptocurrency From Crypto Exchange ... - CCN.com - November 20th, 2023 [November 20th, 2023]
- NBC chief cautions youth over cryptocurrency risks - Khmer Times - November 20th, 2023 [November 20th, 2023]
- Cryptocurrency Ponzi Scam Unearthed in Odisha, Head of Yes World Crypto Token Arrested - Gadgets 360 - November 20th, 2023 [November 20th, 2023]
- Cryptocurrency wallets might be vulnerable to 'Randstorm' flaw - TechTarget - November 20th, 2023 [November 20th, 2023]
- Revolutionizing global payments: RocketFuel reveals how cryptocurrency is transforming businesses - Yahoo Finance - November 20th, 2023 [November 20th, 2023]
- British man cannot be extradited to US over fake cryptocurrency ... - Reuters UK - November 20th, 2023 [November 20th, 2023]
- READOUT: FinCEN Joins Harvard Kennedy School Event on the ... - FinCEN - November 20th, 2023 [November 20th, 2023]
- Why Asia, not the US, will be key for cryptocurrency in next bull cycle - South China Morning Post - November 20th, 2023 [November 20th, 2023]
- Cryptocurrency, Inflation, and Financial Stability: A New Economic ... - FingerLakes1.com - November 20th, 2023 [November 20th, 2023]
- Singapore to Share Cryptocurrency Tax Information With Other ... - Lexology - November 20th, 2023 [November 20th, 2023]
- Kaspa cryptocurrency hits all-time high amid Binance listing By ... - Investing.com - November 20th, 2023 [November 20th, 2023]
- Online 'pig butchering scam' preys on unsuspecting romantic partners, IRS warns - 9News.com KUSA - November 20th, 2023 [November 20th, 2023]
- r/CryptoCurrency Moons (MOON), High Volatility and Rising Saturday: Is it Time to Cash Out? - InvestorsObserver - November 20th, 2023 [November 20th, 2023]
- McDowell Commissioners to consider cryptocurrency mining ban - McDowell News - November 20th, 2023 [November 20th, 2023]
- Paycorp launches app for users to withdraw crypto as cash - Techpoint Africa - November 20th, 2023 [November 20th, 2023]
- Top 11 cryptocurrency trends to look out for in 2023-24 - Investing.com India - November 20th, 2023 [November 20th, 2023]
- Robinhood to launch crypto trading in EU even as cryptocurrency revenue slides almost 26% from last quarter - Fortune - November 7th, 2023 [November 7th, 2023]
- Expect new IRS crypto surveillance to come with a surge in confiscation - Cointelegraph - November 7th, 2023 [November 7th, 2023]
- The role of cryptocurrency in financing terrorism - PBS NewsHour - November 7th, 2023 [November 7th, 2023]
- Cryptocurrency Kinship: Bitcoin's Ties with Major Digital Assets - FingerLakes1.com - November 7th, 2023 [November 7th, 2023]
- Blockchain and Cryptocurrency - Business Insider India - November 7th, 2023 [November 7th, 2023]
- The Role of AES in Cryptocurrency: From Cipher Blocks to Bitcoin - FingerLakes1.com - November 7th, 2023 [November 7th, 2023]
- Coinbase blocked in Kazakhstan amid tighter cryptocurrency ... - Investing.com - November 7th, 2023 [November 7th, 2023]
- Learning cryptocurrency trading with Tedi Ticic - KGET 17 - November 7th, 2023 [November 7th, 2023]
- TRON and Pundi X Collaborate to Boost Cryptocurrency Adoption with XPOS Integration - Yahoo Finance - November 7th, 2023 [November 7th, 2023]
- Fraudulent Ledger Live App in Microsoft Store Linked to $768K ... - Blockchain.News - November 7th, 2023 [November 7th, 2023]
- Cryptocurrency scam worth 2,500 crore uncovered in Indian ... - Investing.com - November 7th, 2023 [November 7th, 2023]
- Why have cryptocurrency values rebounded recently and can they get back to previous peaks? - ABC News - November 7th, 2023 [November 7th, 2023]
- The Alameda gap and crypto liquidity crisis explained - Cointelegraph - November 7th, 2023 [November 7th, 2023]
- SEC Faces Scrutiny Over XRP Lawsuit and Cryptocurrency Regulation, While Bitcoin Remains Resilient - Coinpedia Fintech News - November 7th, 2023 [November 7th, 2023]
- Vietnam loses top ranking in cryptocurrency adoption index - VnExpress International - November 7th, 2023 [November 7th, 2023]
- 3 Growth Stocks With More Potential Than Any Cryptocurrency - The Motley Fool - November 7th, 2023 [November 7th, 2023]
- Bitcoin, Ethereum and XRP lead in surging cryptocurrency market - Investing.com India - November 7th, 2023 [November 7th, 2023]
- Bitcoin has more than doubled this year in resurgence - IndiaTimes - November 7th, 2023 [November 7th, 2023]
- Bitrace Research Exposes Risks of Anonymous Online Markets with Cryptocurrency - CryptoPotato - November 7th, 2023 [November 7th, 2023]
- Does GTRIs cryptocurrency-based suggestions for WTO strike the right cord for global e-commerce space - The Financial Express - November 7th, 2023 [November 7th, 2023]
- 'The Simpsons' Episode Features NFTs, Inspired Collections Soar In Value: Springfield's History With Cryp - Benzinga - November 7th, 2023 [November 7th, 2023]
- Law Enforcement Gears Up: I4C Conducts Cryptocurrency and ... - The420.in - November 7th, 2023 [November 7th, 2023]
- Sam Bankman-Fried Is Found Guilty of 7 Counts of Fraud and Conspiracy - The New York Times - November 3rd, 2023 [November 3rd, 2023]
- NYC jury finds Sam Bankman-Fried guilty on all charges in cryptocurrency fraud trial - New York Daily News - November 3rd, 2023 [November 3rd, 2023]
- Breakingviews - Breakingviews: SBF's guilty verdict will help crypto break free - Reuters - November 3rd, 2023 [November 3rd, 2023]
- What Is Bitcoin 'Halving' and Does it Push Up the Cryptocurrency's Price? - Bloomberg - November 3rd, 2023 [November 3rd, 2023]
- Founders of SafeMoon cryptocurrency touted by Dave Portnoy accused of fraud - New York Post - November 3rd, 2023 [November 3rd, 2023]
- RocketFuel CEO reveals surprising data on cryptocurrency usage: why stablecoins are the future - Yahoo Finance - November 3rd, 2023 [November 3rd, 2023]
- Cryptocurrency market faces massive $137 million futures ... - Investing.com - November 3rd, 2023 [November 3rd, 2023]
- Blockchain & Cryptocurrency Regulation 2024 - Cleary Gottlieb - November 3rd, 2023 [November 3rd, 2023]
- Going nuclear: how the future of cryptocurrency mining is playing out ... - The National - November 3rd, 2023 [November 3rd, 2023]
- Blockchain and Cryptocurrency Edited Web story for testing - Business Insider India - November 3rd, 2023 [November 3rd, 2023]
- Bukit Aman: Cops arrest 40, bust cryptocurrency scam involving over RM50m losses - Malay Mail - November 3rd, 2023 [November 3rd, 2023]
- Doctor cheated of more than Rs 1.3 cr in cryptocurrency fraud in Navi Mumbai; four booked - The Financial Express - November 3rd, 2023 [November 3rd, 2023]
- QTUM, SUI, Render (RNDR) cryptocurrencies on the rise: here's why - Invezz - November 3rd, 2023 [November 3rd, 2023]
- Cops nab 40 people, busts cryptocurrency scam with over RM50m ... - Malaysiakini - November 3rd, 2023 [November 3rd, 2023]
- Cryptocurrency's popularity in the U.S. tied to conservative moral foundations - PsyPost - October 24th, 2023 [October 24th, 2023]
- Fund tracking inverse of bitcoin futures hits all-time low as cryptocurrency rallies - Reuters - October 24th, 2023 [October 24th, 2023]
- Cryptocurrency Rally: Bitcoin and More Soar on New Hopes for ETF - The Motley Fool - October 24th, 2023 [October 24th, 2023]
- Dollar higher as US business activity ticks up in October - Reuters - October 24th, 2023 [October 24th, 2023]
- Bitcoin Is Surging. Here's Why the Cryptocurrency Is Back - Entrepreneur - October 24th, 2023 [October 24th, 2023]
- Cryptocurrency Market Capitalization Sets Years High - Action Forex - October 24th, 2023 [October 24th, 2023]