The world of cryptocurrency investing and trading suddenly found itself shaken up with the news that jury has returned a verdict in Sam Bankman-Fried fraud trial. Sam Bankman-Fried is the CEO and founder of Alameda Research and the FTX cryptocurrency exchange.
The verdict comes in response to criminal securities fraud charges brought against Bankman-Fried due to an alleged crypto market manipulation scheme spanning from December 2017 to October 2018. Bankman-Fried has since denied any involvement in the manipulation of cryptocurrency markets and has maintained his innocence throughout the court proceedings.
In the decision, the jury found Bankman-Fried guilty on all counts of securities fraud. Bankman-Fried could face up to 45 years in prison and fines reaching as high as $2.45 million. He will be sentenced at a later date.
The results of this case represent a major success for the U.S. Department of Justice (DOJ), who have increased their efforts against crypto-related crimes in recent years. This success signals that the DOJ is serious about combatting crypto fraud and are willing to take strong actions against those who take part in such activities.
Despite the clear result of Bankman-Fried’s trial, the crypto industry seems eager to move past the controversial case. However, investors and traders are now likely to be more cautious and attentive in hopes of avoiding the same fate as Bankman-Fried.