FTX’s Sam Bankman-Fried has been found guilty by the court and could face up to 115 years in prison. According to reports, the decision was made after more than 4 hours of deliberation. However, for Renato Mariotti, a former US Department of Justice prosecutor, it will be difficult to see SBF sentenced to more than 25 years.
The founder of the collapsed FTX empire, Sam Bankman-Fried, has been found guilty of all charges after hours of deliberation by the jury. Importantly, SBF faced two counts of wire fraud and five counts of conspiracy ranging from commodity fraud to money laundering.
Several reports confirmed that the jury was prohibited from discussing the case even among themselves. Interestingly, they came to the same conclusion when it came time for the discussion. This means that the accused faces up to 115 years in prison.
According to reports, SBF tried on several occasions to prove his innocence to the jury. He maintained that the collapse of his company was a result of his ignorance. However, none of them could counter the evidence presented against them. The court document shows that the FTX founder accessed, misrepresented, and spent approximately $10 billion of client funds.
Additionally, three people who were once close and trusted colleagues of the defendant testified against him under a cooperation agreement with the government. These people have pleaded guilty.
FTX, the company founded in 2019 by the defendant, was once a big brand with a valuation of $32 billion. In 2022, it enlisted some celebrities, including Tom Brady and Larry David, to endorse the company, for which a class action lawsuit has already been filed in this regard. In November 2022, the company collapsed and this was the beginning of this legal confrontation.
More about SBF and the FTX Issue
SBF once gave a lecture to Congress on the importance of keeping customers’ money safe and transparent. He was also seen donating money to institutions but was later found to have embezzled a huge sum which disrupted the functioning of the company.
In his testimony before Congress, SBF was asked why the company did not implement its best practices at its facility. SBF had previously claimed that his biggest mistake was not hiring a risk manager. However, this is said to be a choice, not a coincidence.
Prosecutor Danielle Sassoon commented, “That’s not a defense. That was a strategy. If you delete messages, update documents and embezzle money from clients, of course you’re not hiring a risk officer.”
According to US Attorney Damian Williams, the outcome of this case should serve as a warning to “criminals” who believe themselves too powerful to be prosecuted.
“(This is) a warning to all scammers who think they are untouchable, that their crimes are too complex for us to detect, that they are too powerful to prosecute, or that they are smart enough to get away with it if they get caught. Those people should think twice and quit.”
But Which 100 Years? SBF Will Be Given Less Than 25
On the other hand, Sam Bankman-Fried could see his freedom again when he is in his early 50s, according to Renato Mariotti, a former prosecutor for the US Department of Justice. There are other specialists who believe that the punishment will be very similar, such as Kevin J. O’Brien.
Overall, therefore, the outcome will be very different from what was thought would happen to SBF, whose sentencing will come next March.
By Audy Castaneda
