Disgraced cryptocurrency magnate Sam Bankman-Fried has been found guilty of all seven counts of fraud and money laundering by a New York City jury.
Bankman-Fried ran one of the world’s largest cryptocurrency exchanges until it collapsed last year when his company, FTX, went bankrupt.
After a month-long trial, a jury convicted 31-year-old Bankman-Fried on Thursday after just a few hours of deliberation. He could face decades in prison.
Prosecutors accused Bankman-Fried of stealing about $10 billion from exchange customers for his personal use.
“He took the money,” assistant U.S. attorney Nicolas Roos said in his closing argument. “He knew it was wrong. He did it anyway, because he thought he was smarter and better and he could find a way out.”
The court case ended nearly a year after FTX filed for bankruptcy with dramatic results that shocked financial markets. The American was arrested in the Bahamas in December and extradited to the US to stand trial. Among those who testified against Bankman-Fried was his ex-girlfriend Caroline Ellison, who said he had arranged customer funds to support risky investments that led to the stock market crash. FTX co-founder and longtime friend of Bankman-Fried, Gary Wang, also testified against him.
During the trial, Bankman-Fried took the stand herself and was cross-examined explained by NPR as “Malay.” In his appearance, he admitted that many people had been harmed by the fall of FTX, although he denied taking part in fraudulent activities. But the jury disagreed.
“Sam Bankman-Fried committed one of the largest financial frauds in American history; a multi-billion dollar scheme designed to make him a crypto king,” US attorney Damian Williams said in a statement after the verdict.
“This case has always been about lies, cheating and theft, and we have no patience for that,” he added.
Responding to the verdict, Bankman-Fried’s attorney Mark Cohen said: “We respect the jury’s decision but we are extremely disappointed with the outcome.” Cohen added: “Mr Bankman-Fried continues to maintain his innocence and will continue to vigorously fight the charges against him.”
The sentence will be announced later, and Bankman-Fried can appeal the verdict.