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FTX CEO Bankman-Fried found guilty by Jury

Jock

In perhaps the least surprising outcome of a trial since Elizabeth Theros got caught, former head of FTX Sam Bankman-Fried has been found guilty of seven counts of fraud relating to his stewardship of the cryptocurrency exchange FTX.

The consequences of the seven counts of fraud and money laundering are huge. He faces a meximum sentence of 115 years jail. Although it is unlikely he will get the maximum sentence, it is expected he will nonetheless spend two to three decades in prison.

His not guilty plea looks like a mistake in retrospect. He argued that he was always acting in good faith, even when he made mistakes.

He was fighting an uphill battle howver, as the prosecution had managed to get three of his workmates, including his former girlfriend Ms Caroline Ellison, to give damning evidence against him.

The jury accepted evidence that crypto trading firm Alameda Research received deposits on behalf of FTX customers without putting in safeguards to protect this monet.

Evidence was also accepted that this money was unlawfully used by Alameda Research, buy property and make political donations.

Bankman-Fried gave evidence in the trial, but the Jury did not accept his explanation that he waas unaware of the financial problems of FTX, and that he made merely exercised “bad judgement” that did not meet criminal thresholds.

Prior to FTX imploding, Bankman-Fried had cultivated an image of being a philanthropist that donated to political causes including the Democratic Party. It is widely expected that he will apply for a presidential pardon at some point.

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