Crypto News – The wealthy cryptocurrency wunderkind Sam Bankman-Fried, who was found guilty of stealing $8 billion from users of the now-defunct FTX exchange he established, is scheduled to be sentenced today.
FTX Fraud Suspect SBF to Be Sentenced Today
After a jury found him guilty in November of seven charges of fraud and conspiracy, Bankman-Fried, 32, could spend decades behind bars. The hearing will be the pinnacle of Bankman-Fried’s fall from grace as an opulent cryptocurrency entrepreneur and significant political donor to the largest prize awarded by US authorities in their ongoing campaign against misbehavior in the digital asset markets.
Although the highest sentence allowed by law is 110 years, he will probably get less. For what they claim to be one of the largest financial scams in American history, prosecutors are asking for a 40–50-year prison term.
His life in recent years has been one of unmatched greed and hubris; of ambition and rationalization; and courting risk and gambling repeatedly with other people’s money,
a sentencing memorandum
In his own defense, Bankman-Fried acknowledged that he committed errors, such as failing to establish a risk management team, but he denied having any malicious intent or desire to steal money from clients. Prosecutors stated in their sentencing document that if Bankman-Fried is freed at a young age, he may conduct fraud once more.
The Fall of Bankman-Fried Chronologically
His journey, which began when he founded Alameda Research in 2017, was bright at first. But after 5 years, the fancy utopia he had built started to crack, and through the cracks, his mistakes leaked out. So what did Bankman-Fried do that could land him in prison for up to 110 years?
November 2022
On November 2, FTX’s own token, known as FTT, was the primary asset held by Alameda Research, according to a leaked balance sheet obtained by cryptocurrency news website CoinDesk. Subsequently, the token lost about $400 million of its market capitalization, and rival exchange Binance declared that it would liquidate its FTT investments.
A flood of customer withdrawals prompted FTX to declare bankruptcy in the United States, and on November 11, Bankman-Fried stepped down as CEO.
December 2022
In the Bahamas, where Bankman-Fried resides and FTX is headquartered, he is taken into custody. Later, on December 12, the Manhattan U.S. Attorney’s office confirmed that he was charged with fraud and conspiracy charges by a federal grand jury.
Bankman-Fried consents to be extradited to the US and departs the Bahamas. Prosecutors announce that Wang and Alameda CEO Caroline Ellison have entered guilty pleas and consented to work with them on December 21 while he is in the air.
On December 22, Bankman-Fried appears in federal court in Manhattan and is granted a $250 million bond, allowing him to be detained at his parents’ Palo Alto, California, residence.
January 2023
Bankman-Fried enters a not-guilty plea in January, and U.S. District Judge Lewis Kaplan sets a trial date for October. Bankman-Fried cites a wider decline in cryptocurrency markets for FTX’s bankruptcy, yet he denies stealing money in a blog post published after his detention.
August 2023
After determining that there was probable cause to suspect Bankman-Fried had tampered with witnesses at least twice, including by disclosing Ellison’s confidential writings to a writer for the New York Times, Kaplan revoked Bankman-Fried’s bail. A trial is scheduled on August 11; Bankman-Fried has been remanded to Brooklyn’s Metropolitan Detention Center.
October 2023
On October 3, a federal trial is scheduled to begin in Manhattan.
While acknowledging that “many people got hurt” when FTX fell, Bankman-Fried maintains in his own defense testimony that he did not swindle anyone or take billions of dollars from clients on October 28.
November 2023
On November 2, Bankman-Fried was found guilty of all seven allegations against him.
March 2024
The sentencing for Bankman-fraud Fried’s conviction is scheduled for March 28.
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