Sam Bankman-Fried, the co-founder and former CEO of FTX and Alameda Analysis, was discovered responsible of all prices together with wire fraud, securities fraud, and cash laundering.

The crimes culminated within the collapse of FTX and Alameda Analysis final November, revealing the mishandling and embezzlement of billions in buyer property. Bankman-Fried may withstand 115 years in jail.

BACKGROUND:

The collapse of the FTX centralized change comprised the biggest fraud related to the cryptocurrency trade.

On Nov. 2, 2022, CoinDesk reported that it had seen a “non-public monetary doc” indicating that 40% of the stability sheet for Alameda Analysis, FTX’s sister buying and selling agency, or $5.9B price of property comprised FTX’s FTT token.

On Nov. 7, Binance introduced it might quickly liquidate its FTT holdings amid rising considerations concerning FTX’s solvency, igniting a run on FTX’s reserves from customers in search of to withdraw their property from the change.

On Nov. 11, Bankman-Fried resigned as CEO and FTX filed for chapter. The aftermath revealed $7B price of property lacking.

From The Guardian:

“The decision, reached after simply 4 hours of jury deliberation, introduced an finish to just about a month of court docket proceedings that featured beautiful testimony from his closest allies and the disgraced entrepreneur himself. He maintained his innocence till the top.”

From CNBC:

“Sam Bankman-Fried perpetrated one of many greatest monetary frauds in American historical past,” Damian Williams, U.S. lawyer for the Southern District of New York, mentioned in a briefing after the verdicts had been learn. “Whereas the cryptocurrency trade could be new and the gamers like Sam Bankman-Fried could be new, this sort of corruption is as outdated as time. This case has all the time been about mendacity, dishonest, and stealing, and now we have no endurance for it.”

From TechCrunch:

“The DOJ’s December 2022 indictment acknowledged Bankman-Fried knowingly defrauded FTX prospects by misusing their deposits to spend money on different corporations and repay lenders and bills. After mounds of proof and a verdict, that assertion has been deemed true by the court docket and jury.”

HOT TAKES

Hayden Adams, founding father of Uniswap mentioned:

“Whereas I consider the SBF responsible verdict is the proper final result, imo it is not a day to have a good time – billions in consumer funds had been misplaced and our trade took a large reputational hit. The one winners had been just a few regulation corporations and varied opponents of crypto.”

Nic Carter, common accomplice at Citadel Island Ventures, mentioned:

“Lot of people that raised cash from Sam, participated within the FTX gravy prepare, went to each FTX social gathering and convention, now spitting on his grave. In case you had been within the [SBF] orbit, probs greatest to pipe down for now. You understand who you’re.”

Uncommon Whales, a monetary influencer, shared information compiling every congress member that beforehand obtained donations from Bankman-Fried and FTX:

“SBF, Sam Bankman-Fried has been discovered responsible. Nonetheless, round 40% of Congress (!!!) obtained donations from SBF and FTX that had been combined consumer funds! Only some politicians returned or donated the funds.”

Autism Capital, a web3 researcher, mentioned:

“Sam Bankman-Fried FAQs:

1) Responsible on 7 prices
2) Most sentence is 115 years
3) Sentencing is March 28, 2024.
4) Doubtless medium safety jail.
5) He has a second trial March 11, 2024 for five extra prices.
6) The second trial sentencing could seemingly even be carried out on March twenty eighth.
7) Nonetheless no signal of Sam Trabucco.”

Adam Cochran, senior council to Synthetix, reposted a tweet revealed by Bankman-Fried on June 28, 2022:
“Backstopping buyer property ought to all the time be major. Every little thing else is secondary.”