- FTX founder Bankman-Fried avoids second trial post-fraud conviction.
- March 28 sentencing may bring penalties; plans for appeal.
- Uncertainty on additional charges due to pending Bahamas’ consent.
U.S. prosecutors have decided against pursuing a second trial for Sam Bankman-Fried, the founder of the now-bankrupt FTX cryptocurrency exchange, who was convicted last month on seven counts of fraud and conspiracy. The decision was disclosed in a letter filed on Friday night in federal court in Manhattan.
Prosecutors cited the “strong public interest” in a swift resolution of the case against the 31-year-old former billionaire as a primary reason for not proceeding with a second trial. Bankman-Fried’s sentencing, scheduled for March 28, 2024, is anticipated to include orders for forfeiture and restitution for victims of the crimes he was convicted of.
Bankman-Fried was found guilty on November 2 of looting $8 billion from FTX customers, with prosecutors alleging his actions were driven by sheer greed. Despite the conviction, he is set to appeal the verdict.
The decision not to pursue a second trial means that Bankman-Fried will not face six additional charges that were severed from the initial trial, including campaign finance violations, conspiracy to commit bribery, and conspiracy to operate an unlicensed money-transmitting business.
Bankman-Fried, whose once-$26 billion personal fortune evaporated following FTX’s bankruptcy filing nearly a year ago, could potentially face decades in prison when sentenced by U.S. District Judge Lewis Kaplan in Manhattan.
The Bahamas, where FTX was based, has yet to grant consent for a trial on the remaining charges, introducing uncertainty into the timeline for any future legal proceedings. Bankman-Fried had been extradited from the Bahamas in December 2022 to face the seven charges from the initial trial.
Prosecutors argued that much of the evidence that could be presented in a second trial was already introduced in the first trial. They also asserted that a second trial would not impact the potential prison sentence, as the judge could consider all of Bankman-Fried’s conduct when determining the punishment.
Bankman-Fried’s conviction came after FTX’s rapid collapse, leading to one of the fastest financial market participant downturns in U.S. history. He has been in jail since August, following the revocation of his bail by Judge Kaplan, who believed Bankman-Fried had likely tampered with prospective trial witnesses.
Lawyers for Bankman-Fried declined to comment on the recent decision by prosecutors not to pursue a second trial.
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