Criminal Trial of FTX Founder Sam Bankman-Fried Nears End: Former Executives Testify
Summary:
The criminal trial against Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has concluded closing arguments and is now awaiting the jury's decision. The disgraced entrepreneur faces seven charges, including frauds and conspiracies. Important executives from FTX are testifying against Bankman-Fried in cooperation with U.S. authorities. If found guilty, the maximum punishment he could receive is 115 years in custody.
The criminal trial against disgraced FTX founder, Sam Bankman-Fried (SBF), has reached its final stage with closing arguments wrapped up and handed over to the jury under the guidance of Judge Lewis Kaplan from the U.S. Southern District of New York. According to the charges filed last December, Bankman-Fried is facing seven different charges, including two counts each of wire fraud and wire fraud conspiracy, and individual counts of conspiracy to commit commodities fraud, securities fraud, and defraud the United States with campaign finance violations.
During his instructions to the jury, Judge Kaplan clarified that the first and third charges, which revolve around alleged fraudulent activities against FTX customers and Alameda Research lenders using interstate wires, are substantive and do not require the existence of another crime. Kaplan expressed, "The Prosecution doesn’t have to establish an actual harm to the victim, rather anticipation of any harm by the defendant [Sam Bankman-Fried] is enough." He added, "Participation of the defendant from the start of the scheme is not mandatory."
Judge Kaplan also addressed SBF's defense that he relied on counsel from FTX attorney Daniel Friedberg, stating, "The mere involvement of a lawyer does not constitute a defense in itself." Rather, the judge emphasized, "Intent can be inferred from circumstantial evidence."
Additionally, Judge Kaplan highlighted for conspiracy counts in the second and fourth charges, "All that is required is an understanding between two or more persons to break the law." However, he cautioned the jury, "Merely being at the scene of a crime or being acquainted with a criminal does not constitute a crime."
Throughout the trial, several top executives from FTX, such as ex-Alameda CEO Caroline Ellison, ex-FTX CTO Gary Wang, and ex-FTX Head of Engineering Nishad Singh, have admitted guilt in relation to charges tied to the exchange's demise last November. They are all providing testimonies against SBF in cooperation with the U.S. government. If found guilty, Bankman-Fried could be looking at up to 115 years behind bars. The jury is set to commence deliberations after their lunch break.
Published At
11/2/2023 5:05:40 PM
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