Sam Bankman-Fried: Convicted ‘Crypto King’ Will Not Face Second Trial

December 30, 2023

Image caption, 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 another trial, U.S. prosecutors said.

Prosecutors said the “strong public interest” in a resolution of their case against the former billionaire outweighed the benefits of a second trial.

He had faced six separate charges from his first trial.

These included campaign finance violations, conspiracy to commit bribery, and conspiracy to operate an unlicensed money transmitting business.

His sentencing has been set for March 28.

In a letter filed in Manhattan federal court, prosecutors said his sentencing would likely include forfeiture and restitution orders for the victims of his crimes.

Bankman-Fried’s sentencing in New York on November 2 concluded 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, collapsed.

FTX was once valued at $32bn (£26bn), but when it went bust in November last year it was missing $8bn in customer funds.

The jury found him guilty of lying to investors and lenders and stealing billions of dollars from FTX, helping precipitate its collapse. He was charged with seven counts of fraud and money laundering.

The prosecution presented evidence that Bankman-Fried’s cryptocurrency trading company, Alameda Research, received deposits on behalf of FTX clients in the exchange’s early days, when traditional banks did not were unwilling to let her open an account.

Instead of protecting those funds, as Bankman-Fried has repeatedly publicly pledged to do, he used the money to pay off Alameda lenders, purchase properties, and make investments and political donations.

He had pleaded not guilty to all charges, saying that although he made mistakes, he acted in good faith.

Five of the counts Bankman-Fried was convicted of carry a maximum prison sentence of 20 years, with a maximum of five years for the other two counts.

This creates a potential maximum sentence of 110 years. Although the judge is unlikely to impose such a measure, Bankman-Fried faces a sentence of several 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 getting their sentences reduced.

They are expected to be sentenced later.

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Video caption, Speaking to the BBC last year, Sam Bankman-Fried denied claims that he knew FTX customers’ money was being used for risky financial bets.

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