This Crypto CEO could face 50 years in prison.

FTX founder Sam Bankman-Fried faces 50 years in prison.

The fall of Bankman-Fried, who was accused in November of masterminding what prosecutors called “the largest financial fraud in American history,” is an ambitious story set against the backdrop of the cryptocurrency boom.

Sam Bankman-Fried faced up to 50 years in prison

The theme of the prosecution's argument hinges on the fraudulent activities of Sam Bankman-Fried, which led to the spectacular collapse of the cryptocurrency exchange FTX. A jury in Manhattan federal court found him guilty on all counts, including defrauding investors, customers and creditors. This is disrupting the once booming crypto market.

Prosecutors painted a grim picture of Banman-Fried, describing his recent life as marred by “unparalleled greed and cruelty”. They argue that the practice is dangerous and a deliberate conspiracy to gamble with billions of other people.

Despite the gravity of the action, Sam Bankman-Fried refused to admit wrongdoing. This stance made the charges against him even worse.

“Even now, Bannmann-Fried refuses to admit his wrongdoing. In recent years his life had been one of unparalleled greed and enthusiasm; Ambition and rationality; the prosecutor wrote.

In contrast, Bankuman-Freed's defense argued for leniency, suggesting a sentence of five to six years in prison. Most FTX customers will get their lost money back and argue that Bankman-Fried did not intend to intentionally defraud them.

This defense, however, appears to be at odds with the weight of the evidence presented during the trial. These include the testimony of several close associates of Bankman-Fried who have since turned state witnesses.

Read more: FTX Collapse Explained: How the Sam Bankman-Fried Empire Fell

The sentencing on March 28 will end this chapter of Bankman-Fried's life and set the stage for further regulation and control of the cryptocurrency industry. U.S. Attorney Damian Williams emphasized the age-old nature of the corruption revealed in this case, saying that while the players and the arena may be new, the deception practiced is as old as history.

“Sam Bankman-Fried committed the largest financial fraud in American history. The cryptocurrency industry may be new. The players could be new like Sam Bankman-Fried. But this kind of corruption is as old as time,” said attorney Williams.

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As Banman-Fried prepares to appeal his conviction and sentence, the outcome of this case could well define the future direction of regulatory oversight in the cryptocurrency industry.