FTX Founder SBF Faces Closing Arguments in Fraud Trial, Risks 115 Years in Prison
Summary:
FTX founder Sam Bankman-Fried (SBF) is set to face the closing arguments of his ongoing criminal trial on November 1. Having denied all seven fraud-related charges against him, SBF will also face five more counts at a second trial in 2024. The charges allege misuse of $8 billion of FTX customer deposits for risky trades at his hedge fund Alameda Research. He refutes these claims, stating it was a necessary risk management strategy. Key FTX execs have pleaded guilty to charges relating to the FTX's collapse last November and are presently cooperating with the government against SBF. If convicted, SBF could face up to 115 years in prison.
The trial of FTX founder Sam Bankman-Fried (SBF) will move to final statements on the 1st of November. The 15th day of the SBF trial saw Judge Lewis Kaplan reject top defense lawyer Mark Cohen's plea for discharge. The verdict will progress to final summations from both sides at 9:30 a.m. ET (1:30 p.m. UTC), following the conclusion of evidence. No additional witnesses will be called as confirmed by legal representatives on both sides. With a denial of all seven fraud-related allegations against him, SBF is now facing the likelihood of five more charges in the succeeding trial scheduled for March 2024. This includes scrutinizing an alleged $150 million bribery to a government official in China.
During the presentation of evidence, Danielle Sassoon, the prosecuting attorney, showed documents, tweets, and business messages that suggested SBF had used FTX customers' deposits worth $8 billion to support a sequence of precarious trades at his hedge fund, Alameda Research. In his defense, Bankman-Fried dismissed these actions as fraudulent, stating instead they were part of a necessary 'risk management' protocol for Alameda's portfolio and perfectly in line with company regulations. Alameda CEO Caroline Ellison, FTX's Chief Technology Officer Gary Wang, and previous FTX engineering head Nishad Singh have all confessed guilt to the charges relating to the FTX's collapse last November and are currently aiding the U.S. government with testimonies against SBF. If found guilty, the maximum penalty Bankman-Fried could face is 115 years in prison.
Published At
10/31/2023 5:36:40 PM
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