Jury Finds FTX Founder Guilty Of Fraud

November 3, 2023

The cryptocurrency industry might be new. The players like Sam Bankman-Fried might be new. This kind of fraud, this kind of corruption is as old as time …

U.S. Attorney Damian Williams after a jury found the the founder of cryptocurrency exchange Sam Bankman-Fried guilty of fraud in what the government lawyers call “one of the biggest financial frauds in American history.”

Bankman-Fried will now face sentencing and up to 110 years in prison for stealing billions of dollars from investors in the crypto-currency exchange he founded, FTX, to fund his investment firm, Alameda Research.

“We respect the jury’s decision. But we are very disappointed with the result,” said Bankman-Fried lawyer Mark Cohen. “Mr. Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him.” (The Wall Street Journal)

FTX founder Sam Bankman-Fried convicted of defrauding cryptocurrency customers

More Context From Nov. 2022:

NEW YORK (AP) — The man who had to clean up the mess at Enron says the situation at FTX is even worse, describing what he calls a “complete failure” of corporate control.

The filing by John Ray III, the new CEO of the bankrupt cryptocurrency firm, lays out a damning description of FTX’s operations under its founder Sam Bankman-Fried, from a lack of security controls to business funds being used to buy employees homes and luxuries.

“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray said. “From compromised systems integrity and faulty regulatory oversight abroad, to the concentration of control in the hands of a very small group of inexperienced, unsophisticated and potentially compromised individuals, this situation is unprecedented.”

by Jenna Lee,