Crypto Community Protests as DOJ Drops Second Trial Against Sam Bankman-Fried
Summary:
The U.S Department of Justice's decision not to push for a second trial against Sam Bankman-Fried has triggered protest among the crypto community. The case, focusing on unlawful campaign contributions and conspiracy charges, will likely avoid further investigation. Critics argue that this prevents closer scrutiny of U.S politicians and their campaign funds, especially leading into the 2024 elections. Bankman-Fried, previously a significant political donor, has also been cleared of charges related to bribing Chinese officials. Found guilty on seven counts of fraud, he will be sentenced in March 2024.
The crypto community is expressing dissatisfaction following the U.S. Department of Justice's choice not to proceed with a second trial against Sam Bankman-Fried. Prosecutors, in a letter submitted in the late hours of December 29, claimed the intense public engagement in the case necessitated an "expeditious determination of this issue." The ruling implies that Bankman-Fried will avoid further accusations regarding the conspiracy to commit unlawful political donations. The document further mentions an abundance of evidence from the first trial that can used during the defendant's sentencing in March 2024.
Cryptocurrency aficionados have largely condemned this approach. Paul Grewal, Coinbase's main legal adviser, identified the decision as a "failure of justice," stating: "It is almost always important for the public to fully understand the charges. Issues regarding campaign funding top this list. The awareness of politicians and others about the situation at different times are vital questions that need answering."
Simon Dixon, Co-Founder of the internet-based investment platform BnkToTheFuture.com, stated the decision also restricts additional inquiries about U.S. politicians concerning campaign donations and clawbacks for the 2024 electoral year. He pointed out that Bankman-Fried squandered $8bn of FTX client funds and used $100m of the looted customer money for donations to U.S. politicians. Although his fraud is under prosecution, his campaign finance offenses have been disregarded and likely won't be reclaimed from the politicians.
Bankman-Fried confessed to being a “significant donor” to both political parties before the 2022 midterm elections. He reportedly devoted over $100 million to political personnel. During his October trial, he acknowledged that the donations credited to him were borrowed from Alameda Research — the sibling entity to FTX — as a method to shape U.S. government cryptocurrency regulations. Before FTX's collapse in November 2022, Bankman-Fried projected to contribute $1 billion to politics by 2024.
In addition to campaign contributions, Bankman-Fried has also been cleared of scheming to bribe Chinese authorities. Prosecutors specified that a second trial wouldn't impact the sentencing guideline range for him. Bankman-Fried was pronounced guilty on seven counts of fraud, including wire fraud, securities fraud, commodities fraud conspiracy, and money laundering conspiracy, in his criminal trial. He will be sentenced on March 28, 2024 and could potentially face up to 115 years in prison. There is now a question lingering about whether crypto exchanges can be trusted after the fall of FTX.
Published At
12/30/2023 9:48:11 PM
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