2023-11-03 03:34:00
The founder of FTX, Sam Bankman-Fried, will face a new trial in March 2024. EFE/EPA
The founder of FTX, Sam Bankman-Fried, was found guilty this Thursday by a New York jury of the seven crimes of fraud and money laundering with which he was accused.
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The 12-member jury (nine women and three men) delivered its verdict late in the followingnoon, following a trial that lasted almost a month and in which the US Federal Prosecutor’s Office defined the 31-year-old defendant , as a fraudster who stole money from thousands of victims.
Bankman-Fried now faces a maximum sentence of more than one hundred years for the seven crimes, which include several counts of fraud and money laundering.
The accused sat as a witness during the last three days of the hearings, and took the opportunity to distance himself from the bad decisions at FTX and its sister company, Alameda Research; point out his former allies, who cooperate with the Prosecutor’s Office, and reiterate that he had no bad intentions, but acknowledged that he did not measure up and failed in risk management.
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The deputy prosecutor, Danielle Sassoon, subjected Bankman-Fried to harsh questioning, pointing out contradictions between her private and public statements and obtaining her confession, for example, that FTX gave a large line of privileged credit to Alameda, which used the funds of clients to “play,” as he stated in closing arguments.
Sam Bankman-Fried might not explain the shortfall of almost $9 billion. Europa Press
FTX, which was one of the largest cryptocurrency platforms in the world and was valued at 30,131 million euros. It collapsed in November 2022 following many users rushed to withdraw their funds amid reports that questioned the company’s solvency.
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Bankman-Fried was accused of diverting nearly $9 billion from FTX clients for other purposes and will face another similar trial in March, in which he is accused of fraud by the Securities and Exchange Commission (SEC). ).
Sam Bankman-Fried became known in the business world when he turned his FTX platform into the second largest cryptocurrency exchange in the world, amassing a gigantic fortune in the process.
FTX pursued an aggressive marketing campaign associating itself with the names of stars such as Brazilian supermodel Gisele Bundchen or American basketball star Stephen Curry.
Bankman-Fried also saved other companies in the industry when they faced difficulties.
With dozens of projects, a fortune estimated at up to $26 billion and always wearing shorts, Sam Bankman-Fried -“SBF”- embodied the world of cryptocurrencies in himself.
The businessman would have used funds from his clients to carry out investment maneuvers that were too risky. Archyde.com
But his empire began to crack last November when a press report denounced business relations between FTX and Alameda Research.
The allegations alleged that the funds of some FTX clients were used, without their knowledge, to finance Alameda and make risky investments.
Panic was generated immediately. Individual investors and business partners rushed to recover their money, to the point that FTX collapsed and declared bankruptcy.
When the dust settled, regarding $8.7 billion was missing, according to the administrator who handled the liquidation, which of course led to allegations of fraud and the beginning of the investigation.
Federal Attorney Damian Williams, who is overseeing the process, has called it one of the biggest frauds in the country’s history. The court heard that FTX had so far recovered $5 billion in cash, cryptocurrencies and securities, with “plans to monetize more than 300 other non-strategic investments” worth $4.6 billion.
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