Former Crypto King Facing Life Imprisonment
By Stefan J. Bos, Chief International Correspondent Worthy News
NEW YORK (Worthy News) – Sam Bankman-Fried, the former billionaire once known as the “crypto king,” was facing life imprisonment Friday after a court found him guilty of his role in the collapse of the cryptocurrency exchange FTX.
Bankman-Fried’s spectacular fall from the crypto throne began nearly a year ago when FTX filed for bankruptcy, fueling panic in the cryptocurrency industry.
A New York jury found Sam Bankman-Fried guilty on all seven charges related to lying investors and lenders and stealing billions of dollars from FTX, helping to precipitate its collapses. The FTX founder faces a maximum sentence of 115 years in prison.
The 31-year-old son of two Stanford legal scholars and graduate of the Massachusetts Institute of Technology was convicted of “wire fraud” and “conspiracy to commit wire fraud” against FTX customers and Alameda Research lenders.
He was also found quickly of “conspiracy to commit securities fraud,” and “conspiracy to commit commodities fraud” against FTX investors, and “conspiracy to commit money laundering.”
Bankman-Fried had pleaded not guilty to all the charges, maintaining that, while he had made mistakes, he had acted in good faith.
LUXURY LIFE
However, prosecutors showed evidence of his luxurious life in the Bahamas while stealing billions from customers. And during the he contributed about $40 million in political donations during the 2022 election season which mostly supported Democrats, according to the Federal Elections Commission (FEC) campaign finance records cited by U.S. broadcaster CBS News.
Bankman-Fried stood before the jury with his hands clasped as the verdict was read while his parents sat with their heads in their hands.
The prophet of the new economy was abandoned by three of his former close friends and colleagues, including his ex-girlfriend, Caroline Ellison. They pleaded guilty and agreed to testify against him in hopes of reducing their sentences. They are to be sentenced at a later date.
“Sam Bankman-Fried perpetrated one of the biggest financial frauds in American history,” Damian Williams, U.S. attorney for the Southern District of New York, told reporters after the verdicts were read. “While the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time. This case has always been about lying, cheating, and stealing, and we have no patience for it.”
His sentencing has been set for March 28 next year. After the verdict, Bankman-Fried’s lawyer, Mark Cohen, said: “We respect the jury’s decision. But we are very disappointed with the result.” He added that “Mr Bankman-Fried maintains his innocence and will continue to fight the charges against him vigorously.”
But without a breakthrough he may face 110 years behind bars. His case came 14 years after late American fraudster and financier Bernie Madoff was sentenced in June 2009 to 150 years in prison.
Madoff, who passed away in April 2021 from chronic kidney disease, was the admitted mastermind of the largest known Ponzi scheme in history, worth an estimated $18 billion. (With additional reporting by Worthy News’ Founder/Editor George Whitten).
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