(TheConservativeTimes.org) – On Thursday, 31-year-old former billionaire Sam Bankman-Fried was found guilty of scamming consumers of his now-bankrupt cryptocurrency exchange via one of the greatest financial scams ever.
Reports show a Manhattan federal jury convicted him on all seven charges following a multi-week-long trial where prosecutors said he stole $8 billion from exchange customers out of greed. The decision came less than a year after FTX declared bankruptcy in a catastrophe that startled financial markets and eliminated his reputed $26 billion wealth.
Bankman-Fried pleaded not guilty to two fraud and five conspiracy charges. United States District Judge Lewis Kaplan may sentence Bankman-Fried to decades in jail.
According to reports, federal prosecutors aim to pursue a second trial on bribery, bank fraud, and campaign finance offenses, which would likely be considered in Bankman-Fried’s punishment. He is anticipated to appeal the judgment after his defense team protested numerous Judge Kaplan’s decisions during the trial.
Trial prosecutors said Bankman-Fried diverted money from FTX to his hedge fund despite the exchange’s social media and TV ads saying user funds were secure.
According to prosecutors, Alameda Research used the money to pay its lenders and lend to Bankman-Fried and other executives, who made speculative investment decisions and donated over $100 million to U.S. political campaigns to promote cryptocurrency legislation that favored his business.
After three former associates testified against him, Bankman-Fried spoke in his defense for three days. Prosecution cross-examination was vigorous, and he avoided answering some questions.
In the superseding indictment released days later, the U.S. Attorney’s Office in Manhattan alleged Bankman-Fried encouraged other FTX officials to make donations in order to avoid contribution limitations as part of a drive for crypto-friendly legislation.
28-year-old ex-girlfriend and business partner and CEO of the hedge fund Alameda Research, Caroline Ellison, said in court that Bankman-Fried gave $10 million to Joe Biden’s campaign in exchange for “influence.”
Author of The Big Short, Michael Lewis, recently informed “60 Minutes” that Sam Bankman-Fried spoke with Republican Senator from Kentucky Mitch McConnell before the 2022 election. McConnell convinced SBF to give millions to his anti-Trump politicians.
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