Good day everyone,
I hope you are all well and had an excellent week, welcome to CryptoGod-1’s blog on all things crypto. The biggest crypto related case has come to a conclusion, with FTX founder Sam Bankman-Fried being found guilty on seven counts of fraud.
Sam Bankman-Fried Guilty
On Thursday the 2nd of November 2023 Sam Bankman-Fried was officially found guilty on on seven counts of fraud and conspiracy. This is for his part played in the demise of his cryptocurrency exchange FTX. With 15 days of courtroom drama and around four and a half hours of deliberations, the jurors delivered the verdict as Bankman-Fried looked sunken and dejected. As Bankman-Fried was escorted out of the room after a brief word from his lawyers, he turned back and smiled at his parents. His mother, Barbara Fried, broke down in tears as her son left the courtroom.
Outside the Manhattan courthouse US Attorney Damian Williams was full of praise for the jury's verdict, noting how the government has “no patience” for fraud and corruption. He added:
“These players like Sam Bankman-Fried might be new, but this kind of fraud, this kind of corruption, is as old as time.”
On the other side, Bankman-Fried's attorney noted their disappointment in the verdict, with lead defense attorney Mark Cohen noting:
“We respect the jury’s decision. But we are very disappointed with the result. Mr. Bankman Fried maintains his innocence and will continue to vigorously fight the charges against him.”
With Bankman-Fried now awaiting his sentencing, he will be facing a potential 110 years behind bars for his action in the stealing of billions of dollars from accounts belonging to customers in his cryptocurrency exchange FTX. Part of this included the transfer of customer funds to his sister company, Alameda Research. During the trial Bankman-Fried noted how he only discovered in 2020 that FTX customer funds were held by Alameda. At the time he made no move to safeguard the funds, and in 2022 when he discovered that Alameda owed $8 billion to FTX, no one was fired.
What Next?
With Judge Lewis Kaplan having set a date of the 28th of March 2024 for Sam Bankman-Fried's sentencing hearing, the disgraced FTX founder will now remain in federal jail in Brooklyn while he awaits sentencing. While his trial is now complete, it is likely that his legal process is just beginning. He still awaits a second trial on five additional charges, which is also scheduled for March 2023. However, Judge Kaplan has asked the prosecution to decide before the 1st of February 2024 on whether they wish to proceed. The 31 year old has gone from living as a billionaire in a luxury apartment in the Bahamas to a defendant in one of the biggest white-collar crime cases since Bernie Madoff's infamous Ponzi Scheme case back in 2009.
Some will point to the potential difficulties that Bankman-Fried faced in preparing for his trial, with Judge Lewis Kaplan having revoked his bail back in August for leaking documents regarding Caroline Ellison to the New York Times. With another potential trial awaiting him in the new year, Bankman-Fried will be facing the same issues once again. Many would argue that to testify requires not only getting the details correct, but also learning how to present oneself under questioning, and dealing with the stress of cross-examination. With Bankman-Fried having lost potential preparation time, some will wonder how things could have gone had he remained on bail.
One thing everyone can be certain of is that Bankman-Fried and his legal team will make use of every avenue possible to reduce or eliminate his sentence. His actions caused widespread panic in the cryptocurrency market back in November 2022 as his exchange filed for bankruptcy. Similarly, his actions while on bail and his need to defend himself by attacking others publicly will have done him no favours. For now he remains behind bars, and in February 2024 he will learn his fate. For now, his team will maintain Bankman-Fried's innocence and look to fight the charges against him.
Have a great day,
Peace. CryptoGod-1.
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