FTX founder Sam Bankman-Fried won't face second trial: Here's why
Sam Bankman-Fried, co-founder of FTX crypto exchange, won't face a second trial after being found guilty of fraud and money laundering last month. Prosecutors said the "strong public interest" in a resolution of their case against Bankman-Fried outweighed the benefits of a second trial. The former billionaire faced six charges that had been separated from his first trial. These included campaign conspiracy to commit bribery, conspiracy to operate an unlicensed money-transmitting business, and finance violations.
Significant evidence of second trial already considered in first trial
According to the prosecutors, a significant portion of the evidence slated for presentation in the second trial had already been introduced during Bankman-Fried's initial trial, and it could be taken into account by the judge during the sentencing scheduled for March 28.
Bankman-Fried was found guilty on seven counts of fraud
Following 15 days of testimony, Bankman-Fried was convicted on seven charges of fraud and conspiracy. The first trial of the 31-year-old former crypto billionaire ended on November 2, and he now faces the possibility of decades in prison. In his sentencing, he will likely be ordered to forfeit assets and pay restitution to his victims.
FTX bankruptcy, missing funds, and more
Bankman-Fried's company, FTX, once worth $32 billion, went bankrupt in November 2022, with $8 billion in customer funds missing. The jury determined that he lied to investors and lenders, stole billions from FTX, and contributed to its collapse. Prosecutors showed that his crypto trading firm, Alameda Research, accepted deposits for FTX customers when traditional banks wouldn't let the company open an account.
Bankman-Fried allegedly misused funds
Instead of protecting customer funds as promised, Bankman-Fried used the money to pay back Alameda lenders, purchase property, make investments, and donate to political campaigns. He pleaded not guilty to all charges, insisting he acted in good faith despite making mistakes. Three of his former friends and colleagues, including ex-girlfriend Caroline Ellison, pleaded guilty and agreed to testify against him in hopes of reducing their own sentences.
Bankman-Fried faces a prison time of up to 110 years
Bankman-Fried was convicted on five charges, each carrying a maximum prison term of 20 years, while the remaining two charges have a five-year maximum. This results in a potential maximum sentence of 110 years. While it is improbable that the judge will enforce the full extent, Bankman-Fried is anticipated to receive a sentence spanning several decades.
