Disgraced Crypto Mogul Sam Bankman-Fried Spared Second Trial, Faces Sentencing in March

In a recent development, US prosecutors have informed a New York federal court that they will not pursue a second trial against Sam Bankman-Fried, the fallen founder of crypto exchange FTX. Bankman-Fried had already been found guilty in November on seven counts of fraud and conspiracy linked to the collapse of FTX.

Originally set for a second trial in March on five additional charges, the decision not to proceed was conveyed in a letter submitted to the court on Friday. Prosecutors cited that most of the evidence intended for the second trial had already been presented during the initial proceedings.

Bankman-Fried’s sentencing is scheduled for March 2024, where he could face a maximum sentence of up to 110 years in prison. The letter from US Attorney Damian Williams highlighted the practical reality and the public interest in a swift resolution, indicating the government’s intention to move forward with the sentencing on the counts for which the defendant was convicted in the first trial.

The letter also hinted at potential orders for forfeiture and restitution for the victims of Bankman-Fried’s crimes.

A spokesman for Bankman-Fried declined to comment on the recent developments. The disgraced crypto mogul was previously extradited from the Bahamas, a jurisdiction that has yet to grant consent for a trial on the remaining charges. Prosecutors acknowledged the lack of a timeline for The Bahamas to respond to their request.

The FTX saga has become one of the most significant white-collar crime cases in recent memory, drawing comparisons to Bernie Madoff’s infamous 2009 Ponzi scheme. Bankman-Fried’s trial involved 15 days of testimony and approximately four-and-a-half hours of juror deliberations.

Found guilty of embezzling billions from accounts belonging to FTX customers, Bankman-Fried also faced charges related to defrauding lenders associated with FTX’s sister company, the hedge fund Alameda Research. The latter entity held FTX customer funds in a bank account. The guilty verdicts also included charges of defrauding FTX investors and a money-laundering charge.