News
Convicted ‘crypto king’ will not face second trial
December 30, 2023
By George Wright, BBC News
The former billionaire was convicted of fraud and money laundering last month
Sam Bankman-Fried, who once ran one of the world’s largest cryptocurrency exchanges and faces decades in prison, will not face retrial, US prosecutors say.
Prosecutors said the “strong public interest” in resolving their case against the former billionaire outweighed the benefits of a second trial.
He was charged with six separate counts at his first trial.
These included campaign finance violations, conspiracy to commit bribery and conspiracy to operate an unlicensed money transmitting business.
His trial has been set for March 28.
In a letter filed in Manhattan federal court, prosecutors said his sentence would likely include forfeiture and restitution orders for victims of his crimes.
Bankman-Fried’s conviction in New York on November 2 capped a stunning fall from grace for the former billionaire once known as the “King of Crypto.”
He was arrested last year after his company, FTX, went bankrupt.
FTX was once valued at $32bn (£26bn), but when it collapsed in November last year, $8bn of customer funds were missing.
The jury found him guilty of lying to investors and lenders and stealing billions of dollars from FTX, helping to precipitate its collapse. He was charged with seven counts of fraud and money laundering.
The prosecution presented evidence that Bankman-Fried’s cryptocurrency trading firm, Alameda Research, was taking deposits on behalf of FTX clients in the early days of the exchange, when traditional banks were unwilling to allow him to open an account.
Instead of protecting those funds, as Bankman-Fried has repeatedly pledged to do in public, he used the money to pay off Alameda lenders, buy properties, and make political investments and donations.
He had pleaded not guilty to all charges, saying that while he had made mistakes, he had acted in good faith.
Five of the charges Bankman-Fried was convicted of carry a maximum sentence of 20 years in prison, and the other two charges carry a maximum sentence of five years in prison.
That creates a potential maximum sentence of 110 years. While it’s unlikely the judge will actually impose that sentence, Bankman-Fried is expected to face a sentence of decades.
Three of his former close friends and colleagues, including his ex-girlfriend Caroline Ellison, pleaded guilty and agreed to testify against him in hopes of reducing their own sentences.
They will be judged later.
Speaking to the BBC last year, Sam Bankman-Fried denied allegations he knew FTX customers’ money was being used for risky financial bets.