On November 2nd, a jury in New York, USA ruled that the founder of the well-known cryptocurrency trading platform FTX Trading Company, former "currency tycoon", and global billionaire Sam Bankman Fried were all convicted of seven charges of fraud and embezzlement of public funds. He faces a maximum sentence of 110 years in prison, and the court will choose a date for sentencing.
FTX was founded in 2019 and is one of the largest trading platforms in the field of virtual currency, with over 1 million global users. Due to a crisis of trust and liquidity, voluntary bankruptcy proceedings were announced last year, resulting in significant losses for investors and clients.
'Coin Circle Idol' Faces 110 Years in Prison
Bankman Freed was born in California in 1992. In 2017, he co founded Alameda Research Company with Ellison and others. In 2019, he co founded FTX with Gary Wang, making it one of the largest cryptocurrency trading platforms in the United States, with a valuation of up to $32 billion (approximately RMB 230 billion).
Bankman Fried graduated from Massachusetts Institute of Technology and quickly became popular with his strong ability to attract money, becoming a "coin idol" and one of the wealthiest people under the age of 30 globally.
In 2022, the proud Bankman Fried even penetrated his influence into American politics, donating $5 million to political groups that support Biden, becoming the second largest donor to the Democratic Party.
Starting from the autumn of 2022, these two companies were exposed by the media as suspected of colluding with each other to manipulate transactions and make improper profits. By the end of the year, their capital chain had finally broken and they had applied for bankruptcy protection, causing numerous investors to suffer heavy losses. Bankman Fried subsequently resigned from his position as CEO of FTX. Arrested in the Bahamas where FTX was registered at the end of last year and extradited back to the United States, he faced multiple federal criminal charges such as fraud, money laundering, and violation of campaign funds laws.
On the evening of November 2, 2023 local time, after 15 days of testimony and approximately four and a half hours of deliberation, the jury found Bankman Freed guilty of seven charges including wire transfer fraud, conspiracy to commit fraud, and conspiracy to launder money.
This trial began in early October and lasted for one month. The sentencing date is set to March 28, 2024. If Bankman Freed is sentenced to the maximum sentence for all charges at that time, he will face 110 years in prison.
100 billion yuan of assets returned to zero overnight
In March 2022, at the age of only 30, Bankman Fried's wealth reached $26 billion (approximately 189.8 billion yuan), earning him the nickname of the "currency giant" and "genius richest man" in the industry.
As of November 7, 2022, his wealth remained at $15.6 billion. However, after the liquidity crisis broke out on November 8, 2022, Bankman Fried's wealth plummeted by 94% on that day. With the bankruptcy of FTX, the book wealth of this legendary tycoon in the currency circle also declared zero.
Damian Williams, the US prosecutor for the Southern District of New York, generously stated in a post judgment briefing that Bankman Fried had committed one of the largest financial fraud cases in US history.
The prosecutor pointed out that Bankman Freed was completely greedy and stole approximately $8 billion in funds from exchange clients. However, Bankman Fried's lawyer still insisted that his client was innocent after the verdict was announced.
Previously sued by investors collectively
In November 2022, Bankman Fried was sued collectively by investors who claimed that he violated Florida laws and caused consumers to suffer losses exceeding $11 billion (approximately 80.3 billion yuan).
And this case is also the largest financial fraud case in the United States since the collapse of the "Ponzi scheme" by former Nasdaq Chairman Madoff in 2008.
In November 2022, the FTX trading platform announced through social media that the company and other subsidiaries of the FTX Group had initiated voluntary bankruptcy proceedings in accordance with relevant US laws.
According to documents from the US Federal Bankruptcy Court, FTX Group disclosed liabilities of up to $10 billion to $50 billion in its bankruptcy filing.
