A US court found FTX founder Sam Bankman-Fried guilty of fraud
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A jury in the United States found Sam Bankman-Fried, the founder of the FTX crypto exchange, guilty of fraud and conspiracy. The verdict will be announced on March 28, 2024, reports CNN. According to the TV channel CNBChe faces up to 115 years in prison.
CNN clarifies that Sam Bankman-Friedman was found guilty of embezzling billions of dollars from FTX client accounts, as well as defrauding creditors of the hedge fund Alameda Research, which kept crypto exchange client funds in a bank account. In addition, the jury found Sam Bankman-Friedman guilty of defrauding FTX investors and money laundering.
During the trial, the founder of FTX said that in 2020 he learned that funds from clients of the crypto exchange were stored in an Alameda account, but did not take any measures to protect them. After he learned in the fall of 2022 that Alameda owed FTX $8 billion, none of the crypto exchange employees were fired, the investigation claims.
On November 11, 2022, the popular crypto exchange FTX declared bankruptcy in the United States. This happened a day after the largest platform, Binance, refused to purchase its main competitor. FTX investors had no insurance fund to cover their losses from the exchange’s bankruptcy. The indictment alleges that Sam Bankman-Friedman funneled depositors’ money into the Alameda account to repay loans and provide a lavish lifestyle for FTX executives.
Read more about the case in the material “Nerd” for whipping”.
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