Cryptocurrency exchange FTX founder Sam Bankman-Fried found guilty

After a lengthy trial involving the now-defunct cryptocurrency exchange FTX and trading company Alameda Research, Sam Bankman-Fried was found guilty of fraud and money laundering.

It ends the astonishing decline in fortune for the 31-year-old former billionaire, who was formerly dubbed the “King of Crypto” and is currently facing decades imprisonment.

When cryptocurrency exchange FTX filed for bankruptcy in November last year, $8 billion in customer cash was missing from its formerly $32 billion (£26 billion) valuation.

While his parents sat with their heads in their hands, Bankman-Fried stood before the jury with his hands clasped as the verdict was read.

The jury deliberated for less than five hours before returning its decision. He was found guilty of deceiving lenders and investors and embezzling billions of dollars from FTX, contributing to the company’s demise.

For five of the charges, Bankman-Fried was found guilty of carrying a maximum prison term of 20 years, with a five-year maximum on the other two charges, creating a potential maximum sentence of 110 years. Although it is unlikely the judge will impose that, Bankman-Fried is expected to face imprisonment lasting decades.

Bankman-Fried had entered a not-guilty plea to every accusation, arguing that despite his shortcomings, he had behaved honourably.

Following the verdict, Mark Cohen, Bankman-Fried’s attorney, stated: “We respect the jury’s decision. But we are very disappointed with the result.”

His sentence is scheduled for March 28, 2024.

Meanwhile, in an attempt to get their sentences reduced, three of Bankman-Fried’s former close friends and coworkers, including his ex-girlfriend Caroline Ellison, pleaded guilty and consented to testify against him. Their sentencing is scheduled for a later time.