The news about the founder of the bankrupt crypto exchange FTX, Sam Bankman-Fried, who was found guilty of fraud, has generated a lot of interest. Let’s take a closer look at the events that took place and look at the impact it has on the cryptocurrency industry.
Samuel Bankman-Freed b. March 6, 1992, Stanford, California, USA – American swindler, entrepreneur, millionaire and investor, founder and CEO of the FTX cryptocurrency exchange.
Here are the details of the trial against the founder of this exchange, but first let’s refresh our memory:
“The FTX crypto exchange was founded by Bankman-Fried in 2019. At the beginning of 2022, it was estimated at 32 billion dollars. After an investigation by journalists in November 2022 revealed the company’s problems with financial stability, investors began to withdraw money from it en masse.
The largest cryptocurrency exchange Binance announced plans to acquire FTX, but after checking the financial condition of the exchange, it was abandoned. As a result, FTX filed for bankruptcy, many investors lost their funds, and Bankman-Fried resigned as CEO.
Bankman-Fried was detained in the Bahamas in December 2022 at the request of the United States. He was soon released from custody on $250 million bail, but in August 2023, the prosecution convinced a judge that the founder of the bankrupt crypto exchange had repeatedly tried to influence witnesses in the case against him since then. As a result, Benkman-Fried was remanded in custody. “
A Manhattan federal court jury found FTX founder Sam Bankman-Fried guilty of fraud and criminal conspiracy. This is reported by Reuters.
According to the prosecutor’s office, the founder of the crypto exchange fraudulently stole eight billion dollars from its customers.
Benkman-Fried was charged with seven counts, on all of which he was found guilty. He refused to plead guilty. Judge Lewis Kaplan scheduled sentencing for March 28, 2024. As Reuters notes, Benkman-Frieda faces decades in prison.
Bankman-Fried’s attorney, Mark Cohen, said he was disappointed by the jury’s decision but respected it. He noted that his client “insists on his innocence and will continue to fight the charges brought against him.”
In March 2024, the founder of the crypto exchange will stand trial on a second set of charges, including the alleged bribery of foreigners and conspiracy to commit bank fraud.
These developments point to the importance of transparency and regulation in the cryptocurrency industry. They also remind investors of the risks associated with investing in this relatively new and volatile field. The Bankman-Fried trial could set a precedent for future cases in the cryptocurrency world.