You may have heard of Sam Bankman, the co-founder of the crypto firm FTX, once the world’s second-largest cryptocurrency exchange. A while ago, Sam Bankman faced allegations of a 10 billion rupees fraud, which a New York jury has now confirmed. However, Sam maintains his innocence. FTX, the company he co-founded, went bankrupt just a year ago.
Breaking News: The FTX founder Sam Bankman-Fried was convicted of seven charges of fraud and conspiracy. The counts carry a maximum sentence of 110 years. https://t.co/FAkOyvZTMB
— The New York Times (@nytimes) November 2, 2023
The trial for this case has been ongoing for the past month, and the jury has delivered its verdict on both the fraud and money laundering charges. Sam Bankman, who had a significant presence in the crypto market for many years, was arrested only last year. US Attorney Damian Williams has categorized this case as one of the largest scams in American history, with experts suggesting manipulation worth billions of dollars.
The question arises: how did such a massive scam occur? Sam Bankman had invested billions of rupees from investors and lenders into his private company, which had received investments from FTX. Sam also operates the trading firm Alameda Research, and there were allegations of him using the funds for personal property purchases. When FTX went bankrupt, Sam’s private company Alameda had to pay 8 billion dollars to the crypto company.
Sam didn’t orchestrate the scam alone; he allegedly collaborated with friends. The names of three of his associates have surfaced in connection with the scam, although full details remain undisclosed. Regarding Sam’s legal status, he has not received a sentencing yet. However, there are speculations that he could face a prison term of up to 110 years.
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