Sam Bankman-Fried will avoid a second trial in cryptocurrency fraud case
U.S. prosecutors will not pursue a second trial for Sam Bankman-Fried, who was recently convicted of defrauding customers of his now-defunct FTX cryptocurrency exchange. This decision has been made public in a letter submitted to a federal court in Manhattan on Friday night.
Prosecutors stated that the need for a swift resolution to the case against the 31-year-old former billionaire is of utmost importance, as his sentencing, scheduled for March 28, 2024, is expected to include rulings on forfeiture and restitution for the victims of his crimes.
Bankman-Fried was convicted on all seven fraud and conspiracy charges last month, with prosecutors claiming that he had stolen $8 billion from FTX customers out of sheer greed.
Notably, Bankman-Fried’s bankruptcy filing erased his once-$26 billion fortune in just one year, making it one of the most rapid collapses of a major player in the U.S. financial markets.
However, even though the verdict has been delivered, Bankman-Fried’s legal troubles are far from over. He still faces six additional charges, including campaign finance violations and conspiracy to operate an unlicensed money transmitting business, which have not yet been scheduled for trial. The extradition process from the Bahamas, where FTX was headquartered, has also posed uncertainties for the timetable of these pending charges.
The trial is expected to be challenging for the prosecution, given the strong defense presented by Bankman-Fried in the first trial. He claimed that the money borrowed from FTX by his hedge fund was permissible and that he did not realize the financial precariousness of both entities until shortly before their collapse.
Bankman-Fried’s conviction is currently under appeal, and he has been detained since August following concerns of witness tampering. His sentence could potentially span decades, marking a significant chapter in the unfolding cryptocurrency fraud saga.
