Federal prosecutors have confirmed that Sam Bankman-Fried, the founder of FTX, will not undergo a second criminal trial after winning fraud conviction, according to a Friday letter filed in a New York federal court.
The prosecutors indicated in the letter that another trial would impede the expedient and fair conclusion of the case. They further argued that their initial case against Bankman-Fried already presented sufficient evidence of his committing numerous financial crimes while at FTX, thus rendering a second trial largely redundant, as per the filing.
Prosecutors said in the letter to Judge Lewis Kaplan, who presided over Bankman-Fried’s first criminal trial last fall.
Given that practical reality, and the strong public interest in a prompt resolution of this matter, the Government intends to proceed to sentencing on the counts for which the defendant was convicted at trial.
The letter concludes any conjecture about Bankman-Fried possibly facing more criminal charges. Previously, there was a jurisdictional contention between U.S. and Bahamian prosecutors – the latter being where Bankman-Fried’s firms were located – about who had the authority to prosecute the former FTX CEO.
In November, Bankman-Fried was convicted on seven counts, including wire fraud, securities fraud, and money laundering. His unlawful activities, uncovered in 2022, led to the loss of billions in funds from FTX and Alameda Research investors, exacerbating a crypto market decline that had begun earlier that year.
Bankman-Fried’s sentencing is scheduled for March 2024, with a potential maximum prison sentence of over 100 years.
