Sam Bankman-Fried’s Fraud Case: Everything You Need To Know

The saga around the fall of cryptocurrency exchange FTX and the trial of its CEO Sam Bankman-Fried is still a shock to many as a result of the large amount of losses recorded. FTX collapsed in November 2022 leading to widespread losses which plunged the cryptocurrency exchange to lows not recorded in a month.
The FTX impact on the market was increased due to the earlier collapse of Terra’s algorithm stablecoin. The fall of the exchange revealed a whopping $8 billion hole in accounts with users staking the claims.
Prosecutors Charge Bankman-Fried On Seven Counts
US prosecutors swung into action leading to the arrest of Bankman in Bahamas and his extradition to the United States. Charged with seven counts of fraud, regulators sought to recover all user funds while proposing new regulations in the market.
His associates, Caroline Ellison, Ryan Salame, Nishad Singh, and Gary Wang were also charged. All four pleaded guilty and took deals before the trial of Bankman-Fried. After a trial rocked the crypto world, SBF was found guilty by a U.S. jury of all seven counts setting the stage for his conviction.
On March 28, the embattled former CEO was sentenced to 25 years in prison and a forfeiture of $11 billion. This sentence received mixed reactions on social media spaces as the prosecution requested a lengthy 40-50 years. Bankman-Fried’s lawyers sought a 6-year prison term citing his status as a first-time offender.
Prison Time and Appeal
On April 8, Bankman-Fried’s lawyers asked the court to allow him to stay at the Metropolitan Detention Center instead of a Federal Prison in San Francisco. Bankman-Fried’s lawyers filed an appeal notice at the United States District Court for the Southern District of New York.
The appeal comes two weeks after the sentence and might go to the Second Circuit Court of Appeals. The court will decide if a reversal of the 25-year sentence of $11 billion forfeiture is due. Several commentators have shared varying views on the appeal.
Also Read: Top Memecoins Outpacing The Market Today
- Aster Outpaces Lighter in Perp DEX Rankings as Wintermute Buys the Dip After Previous Dump
- Is This Final Bitcoin Price Correction Before US Shutdown Ends, Fed Rate Cuts?
- Blockchain for Good Alliance and UNDP AltFinLab Launch Blockchain Impact Forum
- ‘Trump Insider Whale’ Increases Bitcoin Short As U.S. Counters China in New Australia Deal
- Trump Advisor Hints US Government Shutdown Could End This Week, Opening Door for XRP ETF Ruling
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
- Pi Coin Price Eyes 50% Upswing As AI-Powered App Studio Update Ignites Optimism
- Bitcoin Price Prediction as Gaussian Channel Turns Green Amid U.S.–China Trade Progress and Fed Rate Cut Hopes
- Solana Price Prediction: Analyst Notes Bearish Breakdown Amid Derivatives Slowdown
- Shiba Inu Price Eyes Recovery as Burn Rate Jumps 10,785% – Can SHIB Hit $0.000016?