Sam Bankman-Fried found guilty of FTX fraud

(Sharecast News) - Former crypto tycoon Sam Bankman-Fried has been convicted of fraud and money laundering by a court in New York. The high-profile founder of cryptocurrency exchange FTX now faces potentially decades in prison.

FTX was hit by a surge in withdrawals after concerns mounted about its financial health and complex financial structures. A $8bn blackhole in the balance sheet was discovered and along with affiliated hedge fund Alameda Research, it collapsed into bankruptcy last November.

The former billionaire was arrested shortly afterwards at his home in the Bahamas.

Prosecutors accused him of using customer funds deposited with FTX to fund his lavish lifestyle, buy property and make investments and political donations.

Bankman-Fried, 31, pleaded not guilty to all the charges. During the trial he admitted making mistakes but strongly denied defrauding customers and investors.

But the jury disagreed, and found him guilty of all counts late on Thursday evening.

Speaking after the verdict was delivered, US attorney Damian Williams said Bankman-Fried carried out a fraud "designed to make him the king of crypto".

He added that while the industry might be new, "this kind of corruption is as old as time".

Bankman-Fried's lawyer, Mark Cohen, said: "We respect the jury's decision. But we are very disappointed with the result.

"Mr Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him."

Bankman-Fried is due to be sentenced next March.