Home
News
- 1 The ex-CEO of FTX faces 115 years in prison for seven criminal charges against him.
- 2 The infamous case is regarded as one of the biggest financial crimes in history.
When the FTX scam unfolded, it shocked the finance and crypto industry. Sam Bankman-Fried was accused of multiple wrongdoings. It included money laundering, conspiracy against investors, and a ruse to commit securities fraud. Moreover, the collapse of the FTX exchange impacted the entire domain. Many other emerging exchanges and other firms shut down due to its collapse.
A Befitting Sentence To A Huge Fraud
Damian Williams, the US attorney for the Southern District of New York, termed it as one of the biggest financial frauds in American history. In a briefing after the verdicts, he said that this kind of corruption is as old as time.
However, it was orchestrated by a newbie like SBF and in an emerging niche like crypto. These facts make it an exceptionally memorable incident. He stated that right from the beginning, it was all about cheating, stealing, and lying about information.
SBF had pleaded not guilty to the charges with a team of top attorneys. He thought himself to be above the law and the verdict proved him wrong, he said. Attorney General Merrick Garland stated that this is a loud and clear message to everyone. All those trying to hide their crimes under the carpet should learn from this judgment. He stressed that the justice department would find the wrongdoers and put them behind bars.
The federal trial started in early October and didn’t take very long to deliver a sound judgment. Notably, the testimonies used in the cases were of SBF’s close associates. As per the recorded timeline, the jury received the case around 3:15 p.m. EST on Thursday. They took a dinner break around 6 p.m. and came back at 7:37 p.m. with the verdict. Bankman-Fried’s parents were nervous.
They sat in the second pew and tried to comfort each other in painful moments. For Judge Lewis Kaplan as well, this was one of the most notable verdicts. While the parents were visibly distraught, Bankman-Fried chose to remain stoic. Right after the verdict, SBF’s attorney Mark Cohen went to jurors. He asked them if they were sure about their verdict. To his dismay, each of them replied with a firm yes.
For Sam Bankman-Fried, it’s still not over. He faces the second trial in March. Yet, the government will decide if they want to go ahead with this one or not. They can make up their mind till February 1 and attend the sentencing on March 28. Furthermore, SBF can still appeal against this verdict. His attorney Cohen said in a statement that his client would continue the fight.
Impact of Verdict on Crypto Space
As termed by senior attorneys, this judgment will have a lasting impact. It has certainly set a precedent not just in the crypto domain, but in the entire world. The incident has indicated that fraud won’t go unnoticed. More than that, the culprits will get befitting punishment no matter how influential they are. Crypto users hope that this becomes a perfect example for everyone trying to hatch a scam. Hopefully, regulations will tighten in the future and prevent such cases from taking place.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
