Jury Convicts FTX Founder Sam Bankman-Fried of Fraud in Scheme That Cheated Customers and Investors of $10 Billion

On Thursday, a jury in New York convicted FTX founder Sam Bankman-Fried of fraud in a scheme that cheated customers and investors of at least $10 billion. The jury rejected Bankman-Fried’s claim that he never committed fraud or meant to cheat customers before FTX, once the world’s second-largest crypto exchange, collapsed into bankruptcy a year ago.

The monthlong trial began after a judge explained the law that guided the jury through seven charges lodged against the MIT graduate and son of Stanford University law professors. Deliberations began Thursday afternoon as to whether Bankman-Fried was guilty of fraud in the disappearance of billions of dollars from his customers’ accounts on the cryptocurrency exchange he created four years ago.

During the trial, prosecutors argued that Bankman-Fried had committed fraud and had cheated customers and investors of at least $10 billion. Assistant U.S. Attorney Danielle Sassoon told the jury that Bankman-Fried had “exploited the trust of his customers and investors to enrich himself and his associates.”

The defense argued that Bankman-Fried had not intended to commit fraud and had acted in good faith. His lawyers argued that Bankman-Fried had been honest and transparent with his customers and investors and had not intended to deceive them.

The jury’s verdict brings to a close a spectacular rise and fall in the cryptocurrency industry for Bankman-Fried, which included his testimony before Congress, a Super Bowl advertisement and dreams of a future run for president. The jury’s decision will now determine Bankman-Fried’s fate.