Sam Bankman Fried The Fallen Crypto King will Not Face a Second Trial
Sam Bankman Fried, the former CEO of the collapsed cryptocurrency exchange FTX, will not face another trial, US prosecutors announced on Friday. Bankman-Fried, who was once a billionaire and a crypto star, was found guilty of seven counts of fraud and money laundering in November, after a jury trial in New York.
According to a Reuters report, prosecutors decided to drop a second trial, which would have involved six more charges that were separated from the first trial. These charges contained campaign finance offences, conspiracy to engage in bribery, and conspiracy to conduct an unlicensed money-transmitting business.
In a court filing, prosecutors said there was no additional evidence to present in a second trial and that the public interest “weighs particularly heavy here”, as victims eagerly await details about settlement for their FTX accounts.
Prosecutors also said that the court could consider all of Sam Bankman Fried’s conduct, including the charges that were not tried, when sentencing him for the counts that he was found guilty of.
Sam Bankman Fried’s sentencing date is established for March 28, 2024. He faces up to 20 years in prison on each of the most serious charges, and could also be ordered to forfeit his assets and pay restitution to his victims. He remains in custody in a federal jail.
The Rise and Fall of Sam Bankman Fried Crypto King
Sam Bankman Fried’s conviction marked the end of a stunning fall from grace for the 31-year-old, who was once known as the “King of Crypto”. He founded FTX, a cryptocurrency exchange, in 2019, and quickly grew it into one of the world’s largest platforms, with a valuation of $32 billion at its peak.
However, FTX was built on a fraudulent scheme, according to the prosecution. Sam Bankman Fried and his associates used FTX’s customer funds to finance his other venture, Alameda Research, a crypto trading firm. They lied to investors and lenders and used the money to buy real estate, make political donations, and invest in startups. They also tried to bribe Chinese officials to gain access to the lucrative Asian market.
When FTX collapsed in November 2022, $8 billion in customer funds was missing. Bankman-Fried was arrested and charged with multiple counts of fraud and money laundering. He pleaded not guilty and claimed that he acted in good faith, but the jury did not believe him. He was convicted after four hours of deliberations.
Three of his former friends and colleagues, including his ex-girlfriend Caroline Ellison, pleaded guilty and agreed to testify against him in exchange for leniency. They are anticipated to be sentenced at a later date.
Disclaimer
The views and thoughts stated by the author or any people quoted in this article are for informational ideas only and do not demonstrate financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss.
