Sam Bankman-Fried found guilty of defrauding FTX customers out of billions

Sam Bankman-Fried, once the darling of the crypto world, has been found guilty of defrauding customers of his cryptocurrency exchange FTX, in one of the biggest financial frauds on record.

A 12-member jury in Manhattan federal court convicted the 31-year-old on all seven counts of fraud charges accusing him of stealing about $10bbn (£8.2 billion) from customers.

Prosecutors said he spent the money on investments, real estate, promotions for his cryptocurrency exchange and political contributions.

“The crypto industry might be new, the players like Sam Bankman-Fried may be new, but this kind of fraud is as old as time and we have no patience for it,” Damian Williams, the top federal prosecutor in Manhattan, told reporters outside the courthouse.

He said Bankman-Fried “perpetrated one of the biggest financial frauds in American history, a multibillion dollar scheme designed to make him the king of crypto”.

Bankman-Fried, who had pleaded not guilty to two counts of fraud and five counts of conspiracy, stood facing the jury with his hands clasped in front of him as the verdict was read.

His sentencing will take place on 28 March next year. He could face decades in prison.

He is also set to go on trial next March on a second set of charges brought by prosecutors earlier this year, including for alleged foreign bribery and bank fraud conspiracies.

Bankman-Fried’s defence lawyer Mark Cohen said in a statement that he was “disappointed” but respected the jury’s decision.

“Mr Bankman-Fried maintains his innocence and will continue to vigorously fight the charges against him,” he said.

He was extradited from the Bahamas to the United States in December, and was jailed in August after the judge revoked his bail, having concluded he likely tampered with witnesses.

During the month-long trial three of his former fellow top executives pleaded guilty to fraud charges and testified against him.

Bankman-Fried testified for three days, telling the jury he did not commit fraud.

After his arrest last year, US attorney Damian Williams said the fraud was one of the largest in US history.