Last year’s bankruptcy announcement by the cryptocurrency exchange FTX, which shook the financial world, culminated in a court decision against its founder, Sam Bankman-Fried (SBF), after a long wait. The trial held in a federal court in New York concluded with the confirmation of SBF’s guilt in the scandal that caused investors to lose billions of dollars.
Guilty on All Seven Charges!
Sam Bankman-Fried was found guilty on all seven charges related to defrauding FTX’s customers, lenders, and investors. As a result of the trial, he faces up to 115 years in prison for these fraudulent actions.
During the trial, despite the defense team’s presentation of SBF’s confessions and his belief that FTX and Alameda could be saved until the very end, the jury was not swayed. At the end of the four-hour hearing, Bankman-Fried personally took the stand, apologized for the “lack of oversight” at FTX, and admitted his mistakes, yet the jury’s decision remained unchanged.
What Had Happened?
The downfall of SBF caught many in the cryptocurrency sector by surprise. A year ago, the FTX exchange, under the leadership of Bankman-Fried, and its sibling trading firm Alameda Research collapsed due to significant discrepancies in their balance sheets, leading to billions of dollars in losses for customers. Bankman-Fried was subsequently arrested in the Bahamas and extradited to the United States. Just hours ago, he was found guilty of all charges.
Since the collapse of FTX, there has been a constant call for greater transparency and regulation in the crypto market, with the SEC keeping a close watch on cryptocurrency exchanges. The SEC has been making headlines recently with its lawsuits against global crypto exchanges like Binance and Coinbase.
Source: The Block