Sam Bankman-Fried found guilty of fraud

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In this courtroom sketch, Sam Bankman-Fried, far left, stands as the jury foreperson reads the verdict. Associated Press/Sketch by Elizabeth Williams

A New York jury declared FTX founder Sam Bankman-Fried guilty of all charges on Thursday. Bankman-Fried faced two counts of wire fraud and five counts of conspiracy. All of those charges are related to schemes in which he defrauded customers of his cryptocurrency exchange company, as well as lenders to its affiliated hedge fund, Alameda Research. Bankman-Fried is scheduled to be sentenced on March 28, 2024.

Why is Bankman-Fried’s trial significant? FTX’s implosion in November of last year dealt a massive blow to the emerging cryptocurrency industry at large. While the cryptocurrency industry is new, the same kind of corruption is as “old as time,” U.S. Attorney Damian Williams said. Bankman-Fried maintains his innocence, his lawyer said after the jury’s verdict was read.

Dig deeper: Listen to Nick Eicher’s discussion with David Bahnsen on The World and Everything in It podcast about whether FTX’s downfall represents a systemic cryptocurrency issue or just one bad apple.