- Sam Bankman-Fried found guilty on all seven criminal fraud counts.
- Possible sentence could amount to 115 years as per CNBC.
- Bankman-Fried’s donations totaled nearly $40 million to Democrats, behind only George Soros.
Tech entrepreneur and Democratic Party heavyweight donor Sam Bankman-Fried has been found guilty on seven criminal fraud counts, marking a high-profile conviction in the world of cryptocurrency.
According to reports from CNBC, Bankman-Fried, at the young age of 31, could be sentenced to a staggering 115 years in prison, a figure that underscores the severity of the crimes involved.
The swift guilty verdict delivered by the jury follows a month-long trial scrutinizing Bankman-Fried’s questionable financial entanglement between his crypto exchange FTX and a firm called Alameda Research.
He has maintained a not guilty plea to charges of wire fraud, securities fraud, and money laundering.
Deliberations by the jury were brisk, hinging on the crucial aspect of whether Bankman-Fried intentionally misused customer funds from FTX to finance personal and business expenses, political contributions, and to offset losses at Alameda.
In the turmoil of 2022, Bankman-Fried’s once-gargantuan crypto empire imploded. Living with his girlfriend Caroline Ellison in a ‘polycule’ in the Bahamas, Bankman-Fried’s FTX and Ellison’s Alameda were locked in a deceptive financial embrace.
This charade was sustained until skepticism from Binance’s head, Changpeng Zhao, triggered a cascade of withdrawals that laid bare the insolvency of FTX, leading to a $10 billion shortfall.
The initial arrangement for Binance to acquire FTX fell through upon Zhao’s review of the disordered financials, setting the stage for Bankman-Fried’s downfall.
His close financial relationships with Democratic politicians and progressive causes have been particularly scrutinized, given his status as the second-largest donor behind Soros, pouring nearly $40 million into their coffers.
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