FTX founder SBF convicted of seven counts of fraud, facing up to 115 years in prison

FTX founder Sam Bankman-Fried (SBF) was found guilty by a jury of seven counts of fraud as the anniversary of the company's collapse approaches. If all charges are upheld, he could face a maximum of 115 years in prison. The final sentencing is set to be announced on March 28, 2024. Although SBF has the right to appeal, the month-long trial doesn't seem to bode well for him.

one of the largest financial fraud cases in American history

This week, SBF completed a four-day testimony. After 3 PM on November 2, a jury composed of 12 ordinary citizens began deliberations. These jurors range in age from 33 to 69 years old and come from various professional backgrounds. They need to reach a unanimous decision on all seven charges in order to render a verdict.

In a surprising turn of events, the jury reached a unanimous verdict in less than 5 hours, finding SBF guilty on all seven counts. These charges include wire fraud and conspiracy against FTX customers and Alameda lenders, securities fraud conspiracy against FTX investors, commodity fraud conspiracy against FTX customers, and conspiracy to commit money laundering. According to information from the U.S. Department of Justice, the maximum prison term for each charge ranges from 5 to 20 years.

The judge has tentatively set March 28, 2024, as the sentencing date. Considering that SBF's defense attorney has previously raised objections to the judge's rulings multiple times, it is expected that they will appeal the verdict.

It is worth noting that SBF will face another trial in March 2024, involving five additional criminal charges. Therefore, the final outcome of his trial and the specific sentence may take at least another six months to determine.

SBF's courtroom performance has sparked controversy.

During the four-day testimony, SBF's performance was often astonishing. The prosecution accused him of intentionally conspiring to defraud FTX's customers, lenders, and investors by transferring customer funds to the affiliated hedge fund Alameda Research for venture capital, political donations, and purchasing luxury properties.

SBF's defense attorney stated that although his actions were erroneous, the intention was "good faith". They emphasized that SBF founded and operated two billion-dollar companies in emerging markets, made some good decisions, and also made some mistakes. The defense asked the jury to consider the reality of the situation, arguing that it was "communication failures", "mistakes", and "delays" in the "real world" that led to the collapse of FTX, rather than intentional fraud.

However, SBF frequently used vague phrases like "I don't remember" while testifying, attempting to shift responsibility onto others. This attitude repeatedly sparked the judge's displeasure, who demanded direct answers to questions. For example, he claimed not to remember relevant reports from the period between FTX's collapse and his arrest, stating that the misappropriation of customer funds was merely part of Alameda Research's "risk management," and blamed the exchange's collapse on the failure of Alameda Research's head to effectively hedge market risks.

Faced with such a well-prepared defendant, the prosecution had to frequently present evidence such as media reports, videos, and social media posts to counter SBF's claims. Although SBF attempted to gain sympathy through this ambiguous strategy, he ultimately failed to persuade the jury.

Alfred Lin, a partner at Sequoia Capital, a former investor in FTX, expressed support for the conviction of SBF on social media, believing that this outcome confirms a fact that the public has long been aware of: SBF misled and deceived many people, including customers, employees, business partners, and investors.

The jury's verdict marks an important progress in the trial of the SBF case. Based on the trial that lasted for a month, the final sentencing outcome may meet the public's expectations for this highly publicized case.