FTX founder SBF convicted of 7 counts of fraud, facing a maximum sentence of 115 years

On the anniversary of the collapse of the cryptocurrency exchange FTX, its founder Sam Bankman-Fried (referred to as SBF) was found guilty by a jury on seven counts of fraud. If all charges are upheld, he faces a maximum sentence of 115 years in prison. The final sentencing will be announced on March 28, 2024. Although SBF has the right to appeal, the situation does not look favorable for him based on the month-long trial.

One of the largest financial fraud cases in American history

This week, SBF concluded his four-day testimony. After 3 PM Eastern Time on Thursday, the 12 jurors began deliberations. They ranged in age from 33 to 69, with diverse professional backgrounds. Surprisingly, the jury reached a unanimous verdict in less than 5 hours, finding SBF guilty of all 7 counts of fraud.

Around 7:40 PM, the judge announced that a verdict had been reached. The charges announced in court include: wire fraud and conspiracy against FTX customers and Alameda lenders, conspiracy to commit securities fraud against FTX investors, conspiracy to commit commodity fraud against FTX customers, and conspiracy to commit money laundering. According to information from the U.S. Department of Justice, the maximum sentence for each charge ranges from 5 to 20 years.

The prosecution stated that this is "one of the largest financial fraud cases in American history." Judge Lewis Kaplan has tentatively set March 28, 2024, as the sentencing date. Given that SBF's defense attorneys have previously opposed Kaplan's rulings multiple times, it is expected that they will appeal the verdict.

At the sentencing, SBF remained silent, while his father Joseph Bankman bowed his head, and his mother Barbara Fried stared expressionlessly ahead. It is noteworthy that SBF will also face another five criminal charges in a trial in March 2024.

SBF's "laissez-faire" testimony angers the judge

During the past four days of defense, SBF's performance has often left people speechless. The prosecution accuses him of deliberately conspiring to defraud FTX's customers, creditors, and investors by transferring customer funds to Alameda Research for venture capital, political donations, and purchasing luxury homes.

The defense claims that SBF's actions were taken in "good faith" and that he simply made mistakes. His lawyer, Mark S. Cohen, emphasized that Sam founded and operated two multi-billion-dollar companies in an emerging market, with some decisions resulting in great success and others in disaster. Cohen urged the jury to find that SBF acted in "good faith" and should not be convicted of fraud.

However, SBF's own testimony is filled with statements of "I don't remember" and attempts to evade responsibility, which repeatedly angered Judge Kaplan. He claimed not to be involved in the daily trading decisions of Alameda Research, did not remember relevant reports after the collapse of FTX, referred to the misappropriation of client funds as part of "risk management," and blamed the exchange's collapse on Alameda Research head Caroline Ellison's failure to adequately hedge market risks.

Faced with such a well-prepared "debater", the prosecution had no choice but to present evidence such as media reports, videos, and tweets to refute. For SBF, this kind of "irresponsible" testimony was a worthwhile "gamble"; as long as he could convince one juror, it would be considered a success. But in the end, things did not go as planned. His former business partners had already pleaded guilty and testified against him, making his defense futile.

Sequoia Capital partner Alfred Lin expressed his agreement with the conviction of SBF on social media, believing that this outcome confirms a fact that the public has long been aware of: SBF misled and deceived many people, including customers, employees, business partners, and investors.

The jury's verdict marks an important advancement in the trial of the SBF case. Based on the month-long proceedings, the final sentencing outcome is unlikely to disappoint those following the case.