Sam Bankman-Fried trial update: Exploring the sentencing date and other details
Sam Bankman-Fried was convicted guilty of all seven offenses in his criminal trial, and he is currently back in his federal prison cell in Brooklyn. Read on to know more!
Sam Bankman-Fried is a financial and cryptocurrency entrepreneur
Bankman-Fried was on trial and accused of stealing billions of dollars from unsuspecting clients
A juror in New York convicts former CEO and co-founder of cryptocurrency exchange FTX Sam Bankman-Fried guilty of seven counts of fraud and money laundering. The troubled businessman's pleas of innocence were dismissed by the jury, which found him guilty of all charges in a conspiracy that embezzled at least USD 10 billion in investor money.
What is the latest update on Sam Bankman-Fried's trial?
Following 4.5 hours of deliberations, the jury returned a verdict. He might spend decades behind bars. The date of his sentencing is scheduled for March 28 of next year.
As one of the most prominent figures in the cryptocurrency sector, the 31-year-old former billionaire's spectacular fall from grace comes to an end. On March 11, Bankman-Fried may go through a second criminal trial over five counts of conspiracy to commit bribery, conspiracy to run an unauthorized money-transmitting business, conspiracy to commit bank fraud, and conspiracy involving derivatives and securities fraud.
Judge Lewis Kaplan of the New York District Court set a deadline of February 1, 2024, for the government prosecutors to certify their intention to proceed with the second trial. Should that proceed, Bankman-Fried may choose to enter a guilty plea, potentially resulting in a lesser sentence.
Regarding the most recent guilty decision, prosecutors will suggest a sentence by March 15 and Bankman-Fried will appear in court again on March 28, 2024, to be sentenced.
In 2022, FTX, the second-biggest cryptocurrency exchange globally, filed for bankruptcy. Alameda Research, Bankman-Fried's second company, was also under investigation and has since closed. Let's take a look at the timeline of the Crytpo king's downfall!
Sam Bankman-Fried's downfall
FTX announced a liquidity crisis on November 6
On November 6, cryptocurrency exchange Binance liquidated all of its FTT tokens. FTX quickly announced a liquidity crisis the next day. The exchange begged for a rescue from other venture capitalists (VCs), among them Binance. On November 9, Binance withdrew from the agreement to acquire FTX's non-US business, claiming inconsistencies discovered during due diligence.
Assets were frozen
On November 10, FTX's Bahamas subsidiary's assets were frozen, and Bankman-Fried later acknowledged that there was a cash shortage in the company's non-US operations. FTX appoints a new CEO and closes Alameda Research. The cryptocurrency exchange filed for Chapter 11 bankruptcy on November 11.
According to FTX, on November 12, a hacker took $477 million worth of the company's assets and moved its digital assets to cold storage. On November 18, FTX assets in the area were taken over by the Bahamas.
Authorities take Bankman-Fried into custody
Bankman-Fired is taken into custody by Bahamas authorities, who then extradite him to the US so he can face charges. On December 22, he was freed from prison after receiving the biggest bond ever set by a federal US judge, totaling $250 million.
Legal proceedings begin
Bankman-Fried entered a not-guilty plea at the hearing, and the judge set the next hearing date for October 2023. In a blog post, the troubled founder attributes FTX's bad luck to the decline in the cryptocurrency market and refutes any fraud.
The co-founder is cornered when all three of Bankman-Fried's former inner circle coworkers enter guilty pleas to fraud charges and consent to assist with investigations.
Revocation of bail
On August 11, 2023, the US district judge withheld Bankman-bail Fried's because there was probable cause to believe that he had tampered with witnesses at least twice. In order to await his trial, he was sent to Brooklyn's Metropolitan Detention Center.
Defense and trials
On October 3, 2023, Bankman-trial Fried's started in a Manhattan Federal Court. The co-founder acknowledged at a hearing on October 28 that many people were harmed by FTX's demise, but he persisted in denying any fraud on his part.
Bankman-Fried found guilty
On November 2, 2023, a jury in New York dismissed Bankman-Fried's claims of innocence and convicted him guilty on all seven counts of fraud and money laundering.