Former "King of Crypto," Sam Bankman-Fried, Found Guilty of Massive Fraud and Money Laundering

In a dramatic fall from grace, the ex-billionaire and founder of cryptocurrency exchange FTX, Sam Bankman-Fried, has been convicted of fraud and money laundering after a month-long trial in New York. The jury took less than five hours to reach their verdict, signaling potential decades in prison for the former crypto mogul. Bankman-Fried, once known as the "King of Crypto," faced the charges after his company went bankrupt, leaving $8 billion in customer funds missing.

The US attorney Damian Williams labeled Bankman-Fried's actions as "one of the biggest financial frauds in American history," emphasizing that it was designed to make him the crypto king. The charges revolved around allegations of lying to investors and lenders, misappropriating funds, and manipulating the market. While Bankman-Fried pleaded not guilty, the jury found him guilty on seven counts of fraud and money laundering.

His former close friends and colleagues, who had pleaded guilty and agreed to testify against him, are also awaiting sentencing. The trial was closely monitored due to its potential implications for the broader crypto industry, known for its regulatory challenges and concerns related to criminal activities. The verdict is expected to spark further legal battles within the crypto sector.

Former federal prosecutor Renato Mariotti suggested that the absence of specific crypto regulations in the US may continue to lead to industry-related legal battles.