U.S. prosecutors have decided against holding a second trial for Sam Bankman-Fried (SBF), the founder of the now-bankrupt crypto exchange FTX. In November 2923, Jurors convicted SBF on all seven fraud and conspiracy counts he faced. Prosecutors had accused him of looting $8 billion from FTX customers out of sheer greed. The sentencing is scheduled for March 2024. A second trial with further charges was originally planned. The prosecutors have now canceled this.
This decision was detailed in a document submitted to the federal court in Manhattan on Friday night, Reuters reported. Authorities have emphasized the need for a swift conclusion in the case of the 31-year-old ex-billionaire, citing significant public interest. They believe that the benefits of a second trial are outweighed by the desire for a prompt resolution.
Convicted on Nov 2 on all seven charges of fraud and conspiracy, SBF had been accused of siphoning off $8 billion from FTX customers. His defense team has refrained from commenting on the latest development.In addition to the charges he faced in his initial trial, Bankman-Fried was also indicted on six other counts, including campaign finance violations and conspiracy to operate an unlicensed money transmitting business.
However, these charges were separated from the initial trial. Despite his extradition from the Bahamas in December 2022, where FTX was headquartered, the timeline for a trial on these additional charges remains uncertain due to pending consent from the Bahamas.
Bankman-Fried’s downfall was marked by the bankruptcy of FTX, which wiped out his once-estimated $26 billion fortune and represented one of the most rapid collapses global financial sector. He faces a potentially lengthy prison sentence, set to be determined by U.S. District Judge Lewis Kaplan in Manhattan on March 28, 2024.
The prosecution has pointed out that much of the evidence relevant to the additional charges was already presented in the first trial. Moreover, they noted that a second trial would not significantly impact the potential prison term, as Judge Kaplan can consider all of Bankman-Fried’s actions in his sentencing.
SBF, who is expected to appeal his conviction, admitted to errors in managing FTX, such as failing to establish a risk management team, but denied misappropriating customer funds. He claimed to have believed that the borrowing of funds by his hedge fund, Alameda Research, from FTX was permissible and was unaware of their financial instability until just before their collapse.
SBF has been in custody since August, following Judge Kaplan’s revocation of his bail on suspicions of witness tampering.
This case, U.S. v. Bankman-Fried, in the Southern District of New York, continues to highlight the complexities and risks in the world of cryptocurrency and finance.