Tag Archive for: sam bankman fried

Dem Megadonor SBF Sentenced To 25 Years In Prison

/in , , , , , , /by

Convicted cryptocurrency fraudster Sam Bankman-Fried on Thursday received a prison sentence of 25 years.

A jury found Bankman-Fried guilty on seven counts of fraud and conspiracy-related charges in November and the New York probation department’s sentence recommendation was 100 years in prison, according to a February court filing pleading for a lighter sentence. Bankman-Fried’s lawyer had asked for a 60-78 month sentence, citing the convicted fraudster’s philanthropic ventures and Autism Spectrum Disorder (ASD).

“Sam is uniquely vulnerable in a prison population. Individuals with ASD are often at considerably greater risk of physical harm and extortion in prison than other inmates,” his lawyer wrote.

Bankman-Fried co-founded and was CEO of cryptocurrency exchange FTX, which collapsed in November 2022 as it faced accusations of mishandling billions in customer money.

Prosecutors had sought a sentence of between 40 and 50 years, according to CNN. Prosecutors estimate that losses resulting from Bankman-Fried’s actions exceed $10 billion, yet with FTX’s holdings appreciating since the collapse, many customers may recover their lost funds in full.

“A lot of people feel really let down, and they were very let down, and I am sorry about that” Bankman-Fried said at his sentencing hearing Thursday, according to CNN Business. “I am sorry about what happened at every stage. And there are things I should’ve done and things I shouldn’t have.”

Bankman-Fried used FTX customer funds for “charitable contributions,” according to the August indictment against him.

“Well before Alameda or FTX ever existed, Sam committed his life to philanthropy, pledging to earn money and give it away, with the goal of “helping the world’s poorest people,’” his lawyer wrote. “Sam does not just talk about making the world a better place, he takes action.”

The convicted fraudster contributed more than $30 million overwhelmingly to support Democrat-aligned causes, and was the second-largest individual donor to them during the 2022 midterm election cycle, according to The Washington Post’s analysis of Federal Election Commission data.

He “misappropriated and embezzled FTX customer deposits, and used billions of dollars in stolen funds for a variety of purposes, including … to help fund over a hundred million dollars in campaign contributions to Democrats and Republicans to seek to influence cryptocurrency regulation,” according to the August indictment.

Bankman-Fried’s lawyer had described the 100-year sentencing recommendation “grotesque” and “barbaric” in the February filing.

Caroline Ellison, Bankman-Fried’s ex-girlfriend and former CEO of Alameda Research, the sister cryptocurrency exchange to FTX, testified that he instructed her to commit fraud by exploiting FTX and Alameda’s relationship, claiming he established a system to enable the hedge fund to withdraw unlimited funds from the cryptocurrency exchange.

AUTHOR

JASON COHEN

Contributor.

RELATED ARTICLES:

The Consequences of Doing Evil that Good May Come

Here’s What The Corporate Media And Biden DOJ Aren’t Telling You About Sam Bankman-Fried

‘Almost Shocked’: Former US Attorney Blasts Sam Bankman-Fried’s Prison Sentence For Being Too Short

‘He Directed Me To Commit These Crimes’: Alleged Fraudster’s Ex Blames Him At Trial

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Jury Finds Disgraced Crypto Tycoon And Dem Megadonor Guilty Of Fraud

/in , , , , , , , , /by

A jury found disgraced cryptocurrency tycoon and Democrat megadonor Sam Bankman-Fried guilty of fraud-related charges on Thursday.

Bankman-Fried co-founded and served as CEO of cryptocurrency exchange FTX, which collapsed in November 2022 amid allegations the company was mishandling billions in customer funds. The Department of Justice indicted Bankman-Fried on seven fraud and conspiracy-related charges in August, alleging he masterminded a scheme to divert the money to fund campaign contributions, donations to charities and real estate acquisitions.

The jury found Bankman-Fried guilty on all seven charges, reaching the verdict after around four hours of deliberations, according to The Messenger. Four of the charges have potential prison sentences of up to 20 years each, but the judge will make the final decision on sentencing.

His sentencing is scheduled for March 28, according to The New York Times.

Bankman-Fried had pleaded not guilty to the August indictment and faces a potential life sentence, according to CNBC.

The Democrat megadonor’s trial began in October and he has been in jail since August after the judge presiding over his case revoked his bail due to alleged witness tampering. Before that, he was under house arrest at his parents’ California home on a $250 million bond after the Bahamas extradited him to the U.S.

Bankman-Fried donated nearly $39 million to back Democrat-aligned causes and was the second-largest individual contributor to such groups during the 2022 midterm election cycle.

The former cryptocurrency CEO “misappropriated and embezzled FTX customer deposits, and used billions of dollars in stolen funds for a variety of purposes, including … to help fund over a hundred million dollars in campaign contributions to Democrats and Republicans to seek to influence cryptocurrency regulation,” according to the August indictment against him.

Caroline Ellison, Bankman-Fried’s ex-girlfriend and former CEO of Alameda Research, which is the sister hedge fund to FTX, testified that he instructed her to commit fraud regarding FTX and Alameda’s relationship. She asserted that he established a system to permit Alameda to withdraw unlimited funds from FTX.

“As a result of the spending of customers’ deposits, FTX and Alameda had a multi-billion-dollar deficit of customer funds,” the indictment states.

Bankman-Fried allegedly believed he had a 5% shot of becoming president at some point, Ellison testified.

AUTHOR

JASON COHEN

Contributor.

RELATED ARTICLE: ‘I Got A Little Cocky’: Disgraced Crypto CEO Admits He ‘Wasn’t Even Trying’ To Manage Risk

RELATED POST ON X:

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact licensing@dailycallernewsfoundation.org.

Federal Prosecutors Indict Sam Bankman-Fried On Eight Counts Of Fraud

/in , , , , , , /by

Federal prosecutors in the U.S. attorney’s office for the Southern District of New York indicted disgraced former crypto billionaire Sam Bankman-Fried on eight counts of fraud Tuesday, according to a copy of the unsealed indictment.

The charges brought against Bankman-Fried include conspiracy to commit wire fraud on customers, wire fraud on lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud and conspiracy to commit money laundering, according to the indictment. Bankman-Fried was also charged with violating campaign finance laws by conspiring to make illegal contributions to political candidates and joint fundraising committees, among others, the indictment shows.

From at least 2019 through approximately Nov. 2022, Bankman-Fried “agreed with others to defraud customers of FTX.com by misappropriating those customers’ deposits and using those deposits to pay expenses and debts of Alameda Research, Bankman-Fried’s proprietary crypto hedge fund, and to make investments,” according to the indictment.

The indictment echoes a Nov. 2 report by crypto site CoinDesk alleging FTX and Alameda Research misused customer funds, which began the collapse of FTX and Bankman-Fried’s crypto fortune. FTX was Bankman-Fried’s cryptocurrency exchange, and Alameda Research was his crypto trading firm.

Likewise, the Securities and Exchange Commission (SEC) accused Bankman-Fried of a scheme to defraud billions from FTX investors beginning in May 2019.

According to the SEC lawsuit, “Bankman-Fried was orchestrating a massive, years-long fraud, diverting billions of dollars of the trading platform’s customer funds for his own personal benefit and to help grow his crypto empire.”

The Commodity Futures Trading Commission (CFTC) brought similar charges against Bankman-Fried, alleging he violated the Commodity Exchange Act and misused customer funds, CNBC reported.

“Bankman-Fried and other FTX executives also took hundreds of millions of dollars in poorly-documented ‘loans’ from Alameda that they used to purchase luxury real estate and property, make political donations, and for other unauthorized uses,” the CFTC alleged in its filing. 

FTX filed for bankruptcy Nov.11 after appointing bankruptcy executive John J. Ray III as CEO following Bankman-Fried’s resignation from the company. Ray is testifying in front of the House Financial Services Committee about the collapse of FTX.

Bankman-Fried was arrested Monday in the Bahamas after prosecutors filed criminal charges against him, according to The New York Times (NYT). It is unclear when he will be extradited to the U.S., a process that can take weeks or longer, the NYT reported.

Bankman-Fried’s lawyer Mark Cohen told The Wall Street Journal the former “is reviewing the charges with his legal team and considering all of his legal options.”

His net worth peaked at $26.5 billion and was estimated to be $17.2 billion in September. Bankman-Fried told Axios on Nov.29 he had $100,000 remaining in his bank account when he last looked.

This is a developing story and will be updated as further details emerge. 

AUTHOR

JAMES LYNCH

Reporter.

RELATED ARTICLE: ‘House Of Cards’: SEC Lawsuit Alleges Bankman-Fried’s Multibillion-Dollar Fraud On FTX Began ‘From The Start’

EDITORS NOTE: This Daily Caller column is republished with permission. ©All rights reserved.