According to Hungarian time, it was announced during the night that the jury found the director of FTX guilty of all charges against him.
The second-largest cryptocurrency exchange went bankrupt a year ago, causing losses to its clients and trading partners ranging from $7 to $9 billion, according to optimistic estimates, and much higher, according to other sources.
The cause of the collapse was the careless use of stock exchange client funds, embezzlement for personal purposes, and the financing of billions of dollars in losses accumulated by the stock exchange trading company (Alameda Research). Stock Exchange Director Sam Bankman-Fried was arrested last December, and his trial began only one month ago, at the beginning of October.
The former leader was initially charged with 11 charges, 7 of which were eventually tried in court. Based on the night report, the director was convicted of all charges.
- Organizing and committing electronic fraud against FTX clients.
- Conspiracy to commit wire fraud and commit wire fraud against creditors of Alameda Research.
- An organization to commit securities fraud against FTX users.
- Commodity exchange fraud regulation against FTX users.
- An organization to commit money laundering crimes.
The FTX director could be sentenced to up to 115 years in prison for all of this. The ruling will be announced on March 28, 2024, and until then the leader will be placed in a medium-security prison.
Even before the final ruling is announced, on March 11, 2024, a second round of hearings may be held, where the director may be held liable for charges that have not yet been investigated. According to the first comments of experts, it is possible that after the complete success of the first round, the state will not have to impose this order so much. He asked the judge handling the case to be informed by February 1 whether the prosecution deems it necessary to conduct a second round.
According to the remaining charges, the head of the stock exchange could be held responsible for bribery, committing bank fraud, derivatives trading fraud and operating an illegal money management service.
In the course of the court proceedings, the indictment analyzing illegal campaign financing was ultimately dropped and was not investigated. FTX spent $93 million of client funds supporting more than a third of the members of the US Congress and the President of the United States. Joe Biden received a $3 million donation from FTX, making the stock the second-largest backer of the 2020 presidential campaign.
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