- FTX founder Sam Bankman-Fried was discovered responsible of stealing from clients in one of many greatest monetary frauds on document, cementing his fall from grace
- Bankman-Fried’s cryptocurrency trade FTX imploded final 12 months, falling from being price an estimated $32 billion to coming into chapter in November 2022
- Now, Michael Lewis – the writer of ‘Going Infinite: The Rise and Fall of New Tycoon’ – has revealed his greatest concern as he faces greater than 100 years in jail
Disgraced FTX founder Sam Bankman-Fried was this week discovered responsible of stealing $10 billion from clients in one of many biggest financial frauds in American history.
However a life behind bars is the least of Bankman-Fried’s worries in keeping with Michael Lewis – who spent two years interviewing the 31-year-old for his e book ‘Going Infinite: The Rise and Fall of New Tycoon.’
In actual fact, Lewis teased that the reply, whereas ‘loopy’ for some, seems unsurprising for these following the rollercoaster trial – which left SBF staring down the barrel of greater than 100 years in jail.
Final month, Lewis appeared on CBS’ ’60 Minutes’ Sunday to debate his e book and Bankman-Fried’s frame of mind forward of the trial.
CBS’ Jon Wertheim requested Lewis, who met with Bankman-Fried over 100 instances in a two-year interval for the e book, what the 31-year-old fears probably the most about jail.
‘Not having the web,’ Lewis stated.
‘Now that sounds loopy, however I do suppose that if he had the web, he might survive jail ceaselessly.
‘With out having a continuing stream of data to react to – I feel he might go mad.’
Lewis added that if Bankman-Fried had the selection of dwelling in his $39 million penthouse within the Bahamas with out web or the Metropolitan Detention Middle in Brooklyn with the web: ‘There isn’t any query in my thoughts he’d take the jail.’
Bankman-Fried faces as much as 115 years in jail after he was found guilty on all seven counts on Thursday by a Manhattan federal courtroom jury that deliberated for lower than 5 hours. He can be sentenced subsequent March.
The decision got here simply shy of 1 12 months after FTX filed for chapter in a swift company meltdown that shocked monetary markets and erased his estimated $26 billion private fortune.
Bankman-Fried, who had pleaded not responsible to 2 counts of fraud and 5 counts of conspiracy, stood going through the jury along with his arms clasped in entrance of him as the decision was learn.
The conviction was a victory for the U.S. Justice Division and Damian Williams, the highest federal prosecutor in Manhattan, who made rooting out corruption in monetary markets one in every of his prime priorities.
‘The crypto business could be new, the gamers like Sam Bankman-Fried could also be new, however this type of fraud is as previous as time and we’ve got no persistence for it,’ Williams instructed reporters exterior the courthouse.
As soon as the darling of the crypto world, Bankman-Fried – who was identified for his mop of unkempt curly hair and for sporting shorts and T-shirts somewhat than enterprise apparel – joins the likes of admitted Ponzi schemer Bernie Madoff and ‘Wolf of Wall Avenue’ fraudster Jordan Belfort as notable folks convicted of main U.S. monetary crimes.
U.S. District Choose Lewis Kaplan set Bankman-Fried’s sentencing for March 28, 2024. The Massachusetts Institute of Expertise graduate might face many years in jail.
His protection lawyer Mark Cohen stated in a press release that he was ‘disillusioned’ however revered the jury’s choice.
‘Mr. Bankman-Fried maintains his innocence and can proceed to vigorously struggle the fees towards him,’ he stated.
After Kaplan left the courtroom, Cohen put his arm round Bankman-Fried as they spoke on the protection desk.
As Bankman-Fried was led away by members of the U.S. Marshals service, he circled and nodded at his dad and mom, the Stanford Legislation College professors Joseph Bankman and Barbara Fried.
Bankman-Fried is about to go on trial subsequent March on a second set of expenses introduced by prosecutors earlier this 12 months, together with for alleged international bribery and financial institution fraud conspiracies.
Bankman-Fried’s was the primary of a number of blockbuster circumstances Williams introduced towards former high-flying cryptocurrency executives to go to trial.
A number of crypto firms went bankrupt final 12 months after the costs of bitcoin and different digital belongings collapsed following a years-long growth.
Prosecutors argued through the trial that Bankman-Fried siphoned cash from FTX to his crypto-focused hedge fund, Alameda Analysis, regardless of proclaiming on social media and in tv ads that the trade prioritized the security of buyer funds.
Alameda used the cash to pay its lenders and to make loans to Bankman-Fried and different executives – who in flip made speculative enterprise investments and donated upwards of $100 million to U.S. political campaigns in a bid to advertise cryptocurrency laws the defendant considered as favorable to his enterprise, in keeping with prosecutors.
Bankman-Fried took the calculated threat of testifying in his personal protection over three days close to the shut of trial after three former members of his inner circle testified towards him.
He confronted aggressive cross-examination by the prosecution, usually avoiding direct solutions to probably the most probing questions.
He testified that whereas he made errors working FTX, resembling not formulating a risk-management staff, he didn’t steal buyer funds.
He stated he thought Alameda’s borrowing from FTX was allowed and didn’t understand how giant its money owed had grown till shortly earlier than each firms collapsed.
‘We thought that we’d be capable to construct the very best product available on the market,’ Bankman-Fried testified. ‘It turned out principally the other of that.’
Prosecutors had a distinct view.
‘He did not cut price for his three loyal deputies taking that stand and telling you the reality: that he was the one with the plan, the motive and the greed to raid FTX buyer deposits – billions and billions of {dollars} – to provide himself cash, energy, affect,’ prosecutor Danielle Sassoon instructed the jury on Thursday.
‘He thought the principles didn’t apply to him. He thought that he might get away with it.’
The jury heard 15 days of testimony together with former Alameda CEO Caroline Ellison and former FTX executives Gary Wang and Nishad Singh, testifying for the prosecution after coming into responsible pleas.
They stated he directed them to commit crimes, together with serving to Alameda loot FTX and mendacity to lenders and buyers in regards to the firms’ funds.
The protection argued the three, who haven’t but been sentenced, falsely implicated Bankman-Fried in a bid to win leniency at sentencing.
Prosecutors might ask Kaplan to take their cooperation into consideration in deciding their punishment.
Bankman-Fried has been jailed since August after Kaplan revoked his bail, having concluded he possible tampered with witnesses.
