And the jury didn’t deliberate very long to return the verdicts:
Bankman-Fried was charged with seven counts of fraud, conspiracy and money laundering in what federal prosecutors have described as “one of the biggest financial frauds in American history.”
He was accused of using customer deposits on the crypto trading platform FTX to cover losses at his hedge fund, pay off loans and buy lavish real estate, among other personal expenses. …
U.S. Attorney Damian Williams said the verdict sends a message “to every single fraudster out there who thinks that they’re untouchable.”
He could be sentenced to up to 110 years, and he faces additional charges in another trial. His defense in this one amounted to claiming he didn’t know the significance of what he was doing. However, others testified against him in order to get plea deals:
Caroline Ellison, the former co-chief executive of Alameda and Bankman-Fried’s ex-girlfriend, previously pleaded guilty to criminal charges and testified under a cooperation agreement with prosecutors. She has testified that she committed fraud with Bankman-Fried and at his direction.
Ellison additionally testified that Bankman-Fried believed in utilitarianism and thought rules against lying or stealing inhibited his ability to maximize the greatest benefit for the most people.
I have to say first that although I followed Bankman-Fried’s original arrest, I haven’t followed his trial. But I’ll add that in general I don’t like it when the entirety of the evidence against a defendant is the result of confederates trading testimony for plea deals. I know it’s done all the time as a very basic prosecutorial tool – and I think it’s highly likely that in this case the ex is telling the truth, because Bankman-Fried’s claim of ignorance just doesn’t seem plausible. And perhaps there’s plenty of other evidence to corroborate what the ex and the other plea-dealers are saying.
Assuming Ellison’s story is the truth, it’s a fascinating glimpse into the way Bankman-Fried reasoned and rationalized his behavior: utilitarianism. That’s a topic I’ve discussed in before, this post (first in a series of three) from 2015.
