If convicted, the once hailed crypto genius and founder of the now defunct $40B crypto empire could face a substantially long time in prison.
Former FTX CEO Sam “SBF” Bankman-Fried trial is due to start next week. The court has released guidelines for admissible evidence, a calendar, and how opening arguments will be taken.
SBF may face a long time
Since his extradition from the Bahamas, Sam Bankman-Fried has been charged by the Department of Justice on 13 counts, seven of which will be heard at the initial trial starting on October 3. The second trial will begin in March 2024.
In January, SBF had pleaded not guilty on the initial seven charges. He has spent most of the time within that period in house arrest in his parents’ California home and getting his bail revoked for accusations of witness tampering, then pleading to be released back on bail.
Authorities claim that Bankman-Fried “misappropriated and embezzled” deposits from FTX customers. Additionally, they claim he used billions in stolen money to finance risky investments and profit himself. These investments consist of the $460 million stake Bankman-Fried bought in the Robinhood retail trading app.
Bankman-Fried is also accused of giving more than $100 million in campaign donations to Republicans and Democrats in an effort to sway legislation governing cryptocurrencies. They also assert that Bankman-Fried misrepresented financial records and made “false and fraudulent statements” to FTX’s investors.
If convicted, the once hailed crypto genius and founder of the now defunct $40B crypto empire could face a substantially long time in prison.
Calendar for trial
According to a document posted on the public court docket on Thursday, October and the first week of November will be dedicated to trial.
Judge Lewis Kaplan, who is presiding over the trial, asked the prosecution and defense to estimate how long they expect their respective cases to last. The Department of Justice said that they expect theirs is expected to last four to five weeks. Mark Cohen, Bankman-Fried lawyer, said that they could close within one and half weeks.
Who is involved?
Three of Bankman-Fried’s former executives, including his MIT fraternity brother Gary Wang and ex-girlfriend and former Alameda CEO Caroline Ellison, are anticipated to testify against him.
SBF’s lawyers are Mark S. Cohen and Christian R. Everdell.
According to the accusations made by the prosecution, Bankman-Fried and his accomplices “secretly introduced special features into FTX’s computer code, which permitted Alameda to spend and withdraw unlimited amounts of money from FTX.”
Federal prosecutor Danielle Kudla, noted that throughout the roughly eight months Bankman-Fried was held on bail at his parent’s house in California, he had plenty of time to prepare for the trial.
Disclaimer: CryptoPlug does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
