In a courtroom drama that has captivated the cryptocurrency world, the sentencing day for Sam Bankman-Fried, co-founder of the now-bankrupt crypto exchange FTX, has arrived. As the hearing unfolded, it became increasingly clear that the fallen crypto mogul could be handed the harshest punishment.
Sam Bankman-Fried Found Guilty Of Obstruction And Perjury
During the live coverage of the sentencing by Inner City Press, Judge Lewis A. Kaplan’s remarks shed light on the severity of Bankman-Fried’s crimes. The judge adopted the pre-sentence report and addressed the substantial disputes surrounding the sentencing guidelines.
Judge Kaplan pointed out that investors, lenders, and customers were all victims of Bankman-Fried’s fraudulent activities. These crimes included misappropriating FTX customer funds for speculative investments by Alameda and engaging in illicit activities. The judge emphasized that any fortuitous gains from the rise in cryptocurrency values did not diminish the gravity of the offenses committed.
Regarding the loss amount, Judge Kaplan stated that the loss exceeded the $550 million threshold, with investors losing $1.7 billion, lenders losing $1.3 billion, and customers suffering losses of $8 billion.
Additionally, the judge found Bankman-Fried guilty of obstruction of justice, citing his text messages to the former general counsel as attempted witness tampering. Based on the trial testimony, the judge also made three perjury findings, highlighting Bankman-Fried’s false statements regarding his knowledge of Alameda’s use of FTX customer funds.
Tragic Fallout Of FTX Fraud
As Sam Bankman-Fried addressed the courtroom, he expressed remorse for his actions’ impact on FTX customers and colleagues. He acknowledged the losses suffered by customers and their prolonged wait for resolution. Bankman-Fried also mentioned the dangers faced by Alameda and his efforts to salvage the situation, including receiving an “anonymous” message offering advice.
Bankman-Fried acknowledged his understanding of how the prosecutors perceived him, the court, and the media, referencing his earlier attempts to help the general counsel.
Sam Bankman-Fried expressed regret for not being able to do more to ensure that customers, lenders, and investors were appropriately compensated. Despite his statements, the judge’s remarks earlier indicated that the potential sentence could still be severe.
According to Inner City Press, the judge stated that Bankman-Fried’s guideline in the case is life imprisonment, which may amount to a maximum of 1,320 months (110 years).
The case has also been marred by tragic outcomes, with victims, such as Sunil, criticizing the liquidator for the handling of creditor’s rights and alleged suicides linked to the FTX fraud.
As this high-profile case reaches its conclusion, the crypto community awaits the final verdict that will determine Sam Bankman-Fried’s fate. His actions have left a significant impact on investors, lenders, and customers alike.
The daily chart shows FTX’s native token FTT’s sideways price action. Source: FTTUSD on TradingView.com
Featured image from Shutterstock, chart from TradingView.com
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Author: Ronaldo Marquez
