Sam Bankman-Fried, once hailed as a billionaire and one of the youngest newcomers to Forbes’ list of richest people, has been convicted of fraud after a federal jury in Manhattan found him guilty on all seven counts. This marks a significant downfall for Bankman-Fried, who just two years ago was rubbing shoulders with influential figures like Bill Clinton and Tom Brady.
The 31-year-old was arrested in the Bahamas in December 2022 following the collapse of his crypto exchange, FTX, and his crypto trading firm, Alameda Research. He now faces the possibility of more than 100 years in prison when he is sentenced in March.
The government’s case against Bankman-Fried centered on FTX’s decision to loan customer deposits to Alameda, which used the money for risky investments and to pay off debts. When customers tried to withdraw their funds, they discovered that the money was no longer available.
Several former executives of Bankman-Fried’s companies, including his ex-girlfriend Caroline Ellison, pleaded guilty to federal charges and testified against him during the trial. Ellison, who served as Alameda’s CEO, claimed that Bankman-Fried directed her to commit crimes and that she created inaccurate balance sheets to deceive investors about the level of risk.
The trial was not without its controversies. Bankman-Fried’s defense attorneys faced criticism from the judge for their slow and repetitive approach, and Bankman-Fried himself decided to testify, which was seen as a risky move. During cross-examination, he appeared evasive and contradicted himself multiple times.
Bankman-Fried admitted to making significant oversights but maintained that his actions were not criminal. However, the jury did not agree and found him guilty on all counts.
This conviction marks a significant fall from grace for Bankman-Fried, who was once seen as a rising star in the business world. He now faces a lengthy prison sentence and a tarnished reputation.
