Proactive Investors - Sam Bankman-Fried, founder and former head of collapsed cryptocurrency exchange FTX, has been found guilty of fraud and money laundering.
A New York jury convicted him after less than five hours of deliberation, bringing to an end a dramatic trial of the former crypto mogul.
Few will be surprised at his guilty verdict, which came after weeks of incriminating evidence and testimonies by former colleagues Gary Wang, Nishad Singh and Caroline Ellison (who was also romantically linked to Bankman-Fried).
Ellison, who herself pleaded guilty to fraud under a plea bargain, explained how she and Bankman-Fried knowingly siphoned FTX customers’ funds through to Alameda Research, the hedge fund founded by Bankman-Fried and run by Ellison.
More than US$8 billion in customer funds disappeared when FTX collapsed in November 2022, leading to Bankman-Fried’s extradition to the US from the Bahamas, where he lived an opulent lifestyle in the confines of a beachside mansion.
It is now known that he illegally funded this lifestyle through stolen funds, which he also used to pursue political agendas and investments in the cryptocurrency sector.
He had pleaded not guilty to all charges levelled against him, with the defence attempting to paint a picture of a boy in over his head, who nonetheless didn’t intentionally scam anyone.
Yet the jury ultimately sided with the prosecution.
“He took the money. He knew it was wrong. He did it anyway, because he thought he was smarter and better and that he could figure his way out of it," US attorney Nicolas Roos said in his closing arguments.
After the judgement, Bankman-Fried's lawyer Mark Cohen stated: "We respect the jury's decision. But we are very disappointed with the result.”
Indicating that an appeal could be in store, Cohen added: "Mr Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him."
During his time at the very top of the cryptocurrency industry, Bankman-Fried drew many fans, from celebrity endorsers like Tom Brady and Larry David to big-ticket investors like Sequoia and former White House communications director Anthony Scaramucci, founder of SkyBridge Capital.
During the trial, the jury heard that Bankman-Fried believed his floppy black hair helped him climb the ranks and quant trading fund Jane Street, where he worked prior to founding FTX.
Unfortunately for him, the jury was less than enamoured.
Sentencing is scheduled for 28 March 2024, when Bankman-Fried could be given a life sentence.