<\/p>\n
Sam Bankman-Fried, the co-founder and former CEO of FTX and Alameda Research, was found guilty of all charges including wire fraud, securities fraud, and money laundering.<\/p>\n
The crimes culminated in the collapse of FTX and Alameda Research last November, revealing the mishandling and embezzlement of billions in customer assets. Bankman-Fried could face up to 115 years in prison.<\/p>\n
The collapse of the FTX centralized exchange comprised the largest fraud associated with the cryptocurrency industry.<\/p>\n
<\/a><\/p>\n On Nov. 2, 2022, CoinDesk reported<\/a> that it had seen a \u201cprivate financial document\u201d indicating that 40% of the balance sheet for Alameda Research, FTX\u2019s sister trading firm, or $5.9B worth of assets comprised FTX\u2019s FTT token.<\/p>\n On Nov. 7, Binance announced it would soon liquidate its FTT holdings amid increasing concerns regarding FTX\u2019s solvency, igniting a run on FTX\u2019s reserves<\/a> from users seeking to withdraw their assets from the exchange.<\/p>\n On Nov. 11, Bankman-Fried resigned as CEO and FTX filed for bankruptcy<\/a>. The aftermath revealed $7B worth of assets missing.<\/p>\n From The Guardian<\/a>:<\/strong><\/p>\n \u201cThe verdict, reached after just four hours of jury deliberation, brought an end to nearly a month of court proceedings that featured stunning testimony from his closest allies and the disgraced entrepreneur himself. He maintained his innocence until the end.\u201d<\/p>\n From CNBC<\/a>:<\/strong><\/p>\n \u201cSam Bankman-Fried perpetrated one of the biggest financial frauds in American history,\u201d Damian Williams, U.S. attorney for the Southern District of New York, said in a briefing after the verdicts were read. \u201cWhile the cryptocurrency industry might be new and the players like Sam Bankman-Fried might be new, this kind of corruption is as old as time. This case has always been about lying, cheating, and stealing, and we have no patience for it.\u201d<\/p>\n Start for free<\/a><\/div>\n From TechCrunch<\/a>:<\/strong><\/p>\n \u201cThe DOJ\u2019s December 2022 indictment stated Bankman-Fried knowingly defrauded FTX customers by misusing their deposits to invest in other companies and pay off lenders and expenses. After mounds of evidence and a verdict, that statement has been deemed true by the court and jury.\u201d<\/p>\n Hayden Adams, founder of Uniswap said<\/a>:<\/em><\/strong><\/p>\n \u201cWhile I believe the SBF guilty verdict is the right outcome, imo it’s not a day to celebrate – billions in user funds were lost and our industry took a massive reputational hit. The only winners were a few law firms and various opponents of crypto.\u201d<\/em><\/p>\n Nic Carter, general partner at Castle Island Ventures, said<\/a>:<\/em><\/strong><\/p>\n \u201cLot of people who raised money from Sam, participated in the FTX gravy train, went to every FTX party and conference, now spitting on his grave. If you were in the [SBF] orbit, probs best to pipe down for now. You know who you are.\u201d<\/em><\/p>\n Unusual Whales, a financial influencer, shared<\/a> data compiling each congress member that previously received donations from Bankman-Fried and FTX:<\/strong><\/p>\n \u201cSBF, Sam Bankman-Fried has been found guilty. However, around 40% of Congress (!!!) received donations from SBF and FTX that were mixed user funds! Only a few politicians returned or donated the funds.\u201d<\/em><\/p>\n\n
HOT TAKES<\/h2>\n