The legal proceedings involving the creator of the defunct FTX exchange had come to epitomize the extravagances associated with the unpredictable cryptocurrency sector.
Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, was found guilty on Thursday of seven counts related to fraud and conspiracy following an extensive trial that exposed the pervasive arrogance and speculative behavior prevalent within the cryptocurrency sector.
Mr. Bankman-Fried became emblematic of the cryptocurrency industry's reckless behavior, as FTX faced a significant downfall. He was accused of misappropriating funds amounting to potentially $10 billion from customers to support political donations, venture capital ventures, and lavish expenditures.
The combined charges have a cumulative maximum penalty of 110 years. Mr. Bankman-Fried, aged 31, is anticipated to file an appeal. His sentencing is set for March 28.
SBF's PARENTS
While the foreperson was reading the guilty verdicts, Joseph Bankman, the defendant's father, bowed his head, burying it in his lap from a seat in the viewing gallery. Meanwhile, his mother, Barbara Fried, remained motionless, sitting with a stiff and emotionless demeanor, gazing straight ahead.
After the judge departed from the courtroom, Bankman-Fried rose, and his legal team leaned in to converse with him. He didn't turn to look at the viewing gallery, even as his parents moved over to the wooden divider situated directly behind him.
With their arms around each other, they fixed their eyes on Sam's back while approximately three dozen reporters swarmed around them.
Sam still hadn't glanced back at his parents or the rest of the gallery as he was escorted towards an exit at the front of the courtroom.
However, just before reaching the door, he shot a brief, almost imperceptible half-smile and nod towards his parents. His mother reacted with an audible thump as she brought her hand to her chest.
SBF's POINT OF VIEW
Bankman-Fried shifted responsibility onto Wang, attributing the creation of a function that enabled Alameda to trade funds on FTX beyond its actual holdings. He asserted that he was uncertain about the circumstances surrounding Alameda's escalating line of credit, which swelled to billions amidst the turbulent crypto market of 2022.
During his testimony, he also held Ellison accountable for a lack of emphasis on risk management and disavowed any fraudulent intent towards FTX customers when Alameda accessed over $8 billion of their assets. Instead, he framed it as Alameda's borrowing from the exchange.
Photo from EKATERINA BOLOVTSOVA on pexels.com
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