FTX Founder and former CEO Sam Bankman-Fried (SBF) has been found guilty of stealing customer funds. A jury found him guilty on all seven charges as put forth by the United States Department of Justice. The jury concluded that SBF knowingly and willingly extracted $8,000,000,000 USD of customer money that was filtered through Alameda Research, a trading firm which he also helped to create. As a result of the guilty verdict, SBF will face up to 115 years in prison. The sentencing will take place in March 28th 2024.

The trial was about a month long, beginning in October. The jury heard from former Alameda CEO Caroline Ellison, as well as former FTX leadership members Nishad Singh and Gary Wang. These three have plead guilty to their involvement, and due to cooperation with the US Department of Justice they will likely receive reduced sentences though that remains to be seen.

SBF is set to face another trial on March 11th 2024 related to banking fraud and bribery of Chinese officials.

What happens next?

Sam Bankman-Fried can appeal the verdict, but that will not happen until March 2024. In terms of sentencing, SBF could face up to 115 years in federal prison though it is hard to imagine this actually taking place. If previous sentencings for white-collar crimes are any indication, SBF will be in prison for quite some time though eligible for parole. He is 31 years old which means he may see life outside of confined walls at some point. There is still a second trial that will take place just before sentencing but each will come with its own verdict and punishment.

For customers who lost their money in FTX's bankruptcy, they can file claims in hoping to receive a portion of it returned. Alongside with Celsius, Gemini's Earn, and BlockFi, it is still undetermined if and exactly how much money customers may see again. It is estimated that customers are owed around $8,700,000,000 USD.

Once the face of Effective Altruism, Sam Bankman-Fried is now effectively astray.