NewsletterSam 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.
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