In The FTX Fraud Case, Sam Bankman-Fried Might Get A 115-Year Sentence

The disgraced Bitcoin icon was charged with eight counts, including conspiracy to commit wire fraud and money laundering, as well as securities fraud and conspiracy to circumvent campaign funding restrictions. If convicted, the former cryptocurrency mogul faces up to 115 years in jail.

The trial date has been scheduled for October 2 by U.S. District Judge Lewis Kaplan. SBF, who is being held on a $250 million bail, appeared in Federal District Court in Manhattan, where his attorney, Mark Cohen, filed a not guilty plea on all charges.

Mr. Bankman-Fried, 30, previously admitted committing errors but rejected allegations of widespread fraud, setting the path for a trial. However, the Massachusetts Institute of Technology graduate may alter his mind and plead guilty to some of the allegations.

SBF was charged by federal prosecutor Danielle Sassoon of executing a multiyear plan that deceived consumers and lenders about the financial situation of FTX and Alameda from 2019 to November 2022. In addition, he broke federal campaign finance laws and deceived the Federal Election Commission by funneling $70 million in unlawful donations to political politicians, according to U.S. Attorney Damian Williams.

Bankman-Fried is also accused of misusing $8 billion in client funds to purchase lavish real estate and vanity projects in the Bahamas, trade cryptocurrencies, invest in other firms, and make tens of millions of dollars in political contributions.

Prosecutors have termed his acts “an immense swindle” and one of the greatest and most “brazen” in recent memory.

On December 21, Bankman-Fried was extradited from the Bahamas, where he resided and where his enterprises were located, to the United States. He appeared in court the following day and was granted bail on a $250 million recognizance bond backed by his family's property in California. However, he was freed under very stringent terms, including a prohibition on transferring or accessing FTX client assets and confinement to his parent's house in Palo Alto.

Alameda CEO Caroline Ellison and FTX co-founder Gary Wang, two of Bankman-closest Fried's associates, have both pled guilty to criminal charges. According to the agreements, Ellison, 28, and Wang, 29, have promised to fully assist the government after being charged with civil and criminal fraud and conspiracy.

Stay tuned for more FTX news.

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