Crypto Mogul Trial Nears Conclusion: After four days of intense testimony in his criminal fraud trial, Sam Bankman-Fried, the prominent figure in the crypto world, has stepped down from the stand. The Manhattan court proceedings have been closely watched, as the outcome could have significant implications for the digital currency industry.
Judge Lewis Kaplan officially closed the presentation of evidence in the case on Tuesday, sending the jury home. Closing arguments are scheduled for the following day, marking a critical juncture in the trial.
The latest testimony appears to have dealt some potentially damaging blows to Bankman-Fried’s defense, which has centered on the narrative that he made honest mistakes as a startup founder. However, prosecutors have argued that the former billionaire used his crypto exchange, FTX, as his personal piggy bank, siphoning off customer funds to enrich himself, acquire luxury properties in the Bahamas, and contribute millions to US political campaigns.
During Tuesday’s testimony, Bankman-Fried, aged 31, admitted that he was aware as early as 2020 that FTX customer funds were held in a bank account controlled by FTX’s sister company, the hedge fund Alameda Research. Yet, he claimed not to remember giving any specific instructions to Alameda employees to safeguard those funds.
The government has countered this assertion, alleging that Bankman-Fried was fully aware of misrepresenting key aspects of his business to investors, customers, and lawmakers in Congress. He faces seven counts of fraud and conspiracy and has pleaded not guilty.
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Bankman-Fried’s decision to testify in his own defense has been viewed as a high-stakes move. His legal team has faced challenges in undermining the testimonies of high-ranking executives from his inner circle who have testified against him. US Assistant Attorney Danielle Sassoon’s cross-examination on Tuesday included highlighting Bankman-Fried’s close ties to the Bahamian government and a dinner he attended with the island nation’s prime minister, former US president Bill Clinton, and former UK Prime Minister Tony Blair.
Notably, Bankman-Fried offered to open withdrawals for all Bahamian customers last year when FTX froze customer withdrawals amid a liquidity crisis. He testified that he did open withdrawals “for a short period.”
Bankman-Fried also claimed not to recall directing Alameda employees to refrain from using FTX customer deposits. When he later discovered that Alameda owed $8 billion to FTX in the fall of 2022, no one was terminated.
In an effort to clarify his relationship with Alameda, Bankman-Fried stated that after he stepped down as Alameda’s CEO, he significantly reduced his involvement in the company. While he was a majority owner, he noted that he received periodic financial updates and was engaged in many venture investments and hedging decisions but was uninvolved in day-to-day trading.
As the trial moves towards its conclusion, the outcome will have far-reaching implications, not only for Bankman-Fried personally but also for the broader cryptocurrency industry, which is closely monitoring the proceedings.
Our Reader’s Queries
What was the verdict in the Bitcoin case?
US prosecutors have announced that Sam Bankman-Fried, the former head of one of the largest cryptocurrency exchanges in the world, will not be facing another trial. The 31-year-old was recently convicted of fraud and money laundering, and is now facing the possibility of decades in jail. Despite this, prosecutors have confirmed that there will be no further legal proceedings against him.
Was FTX founder Sam found guilty?
Sam Bankman-Fried, the founder of FTX, has been found guilty of criminal fraud by a federal jury in Manhattan. The verdict was reached after just over four hours of deliberation, with Bankman-Fried being found guilty on all charges in his federal fraud and conspiracy trial. This news is sure to have significant implications for both Bankman-Fried and FTX, and it remains to be seen what the fallout from this verdict will be.
What was the guilty verdict for SBF?
Bankman-Fried has been convicted of seven counts of fraud and conspiracy by a Manhattan jury. The verdict was reached in less than five hours on Thursday. The charges carry a maximum sentence of 20 years in prison each.
What is the sentence for the FTX trial?
The trial court judge will determine Bankman-Fried’s fate on March 28, 2024. According to Epner, if Kaplan chooses to impose a sentence of 110 years, SBF would have limited options for appeal.