US District Judge Lewis A. Kaplan announced the verdict in the Manhattan Federal Court, after Bankman Fried stated that he "apologized for what happened at each stage.". This former billionaire became a symbol of dereliction of duty and greed in the cryptocurrency world after the collapse of its popular FTX exchange, exposing a year long fraud that involved defrauding approximately $8 billion from customers, investors, and lenders. He was convicted on seven charges last year, including fraud and conspiracy.
Bankman Fried, 32, denies intentional fraud and claims that he and his cryptocurrency empire are victims of the 2022 market downturn. The jury was not shaken by the former billionaire's defense of being a victim of a market downturn, mainly because the evidence was so overwhelming and his defense was so contradictory.
The judge said, "There is never a word of remorse for the terrible crime committed," and added that Bankman Fried carries the risk of committing another crime.
US federal prosecutor Damian Williams said, "Today's verdict... conveys an important message to others who may be tempted to engage in financial crimes: justice will be quickly upheld, and the consequences will be severe."
The verdict has now been completed, and Bankman Fried's lawyer stated that they will appeal his conviction.
Bankman Fried graduated from Massachusetts Institute of Technology and became a billionaire before the age of 30. He conquered the cryptocurrency world at an astonishing speed, transforming his small startup FTX, which he co founded in 2019, into the world's second largest trading platform.
But in November 2022, the FTX Empire collapsed and was unable to respond to large-scale withdrawal requests from customers. Customers were panicked to learn that some of the funds stored by the company had been used for high-risk operations by Bankman Fried's personal hedge fund Alameda Research.
During the trial, some of Bankman Fried's closest colleagues stated that he was the key to all the decisions that led to FTX losing $8 billion.
Recovery of funds
Bankman Fried's lawyer also pointed out that the statement by the current FTX leader expresses confidence that FTX clients and creditors will recover funds, and stated in the briefing that "the harm to clients, lenders, and investors is zero.".
This argument has elicited a stern response from FTX Trading CEO John Ray, who stated that continuing to recover ill gotten gains cannot compensate for fraudulent behavior.
Ray said in a letter to the court, "The things he stole... successfully recovered through the efforts of professionals, does not mean that these things have not been stolen."
"This means we have retrieved some of them."
