Crypto-crook Sam Bankman-Fried spared a second trial
- Reference: 1704180606
- News link: https://www.theregister.co.uk/2024/01/02/sam_bankman_fried_spared_a/
- Source link:
The prosecutors reasoned that much of the evidence that would be submitted had already been considered in his [1]October trial – an event which yielded a [2]guilty verdict after just four hours of jury deliberation.
Furthermore, the [3]letter [PDF] cites "strong public interest in a prompt resolution" as a reason for not pursuing additional legal action.
[4]
Although forgoing an additional trial means not holding SBF accountable for conspiracy to make unlawful campaign contributions, additional court dates would most certainly delay a scheduled March 2024 sentencing, as it would require negotiating with The Bahamas regarding terms of extradition.
[5]
[6]
SBF was extradited to the US from The Bahamas, where his crypto exchange FTX was headquartered, in December 2022. While the island nation agreed to extradition on seven out of eight charges, local authorities did not consent to extradition on a charge of conspiracy to make unlawful campaign contributions. US courts were therefore unable to pursue the eighth charge.
SBF's first trial yielded seven guilty verdicts. Those included two counts of conspiracy to commit wire fraud, two counts of wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering. Together they carry a combined maximum sentence of 110 years.
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However, even though the campaign finance charge was not pursued, it could be considered relevant in sentencing matters, wrote the attorneys in their filing.
The prosecutors' letter detailed that the sentencing judgment will also "likely include orders of forfeiture and restitution for the victims of the defendant's crimes."
SBF's other enterprise, crypto trading firm Alameda Research, allegedly used FTX customer deposits as a slush fund with a line of credit of up to $65 billion dollars.
[8]
According to United States vs Bankman-Fried , stakeholders were defrauded of around $10 billion when, as it was [9]testified , those funds were used to bail out Alameda Research.
While SBF at one point was a media darling who graced the cover of Forbes magazine and was hailed as an altruist, a different picture emerged upon the fall of his various schemes.
In addition to his allegedly [10]decadent lifestyle lived at his victims' expense, he is also accused of [11]bribing Chinese officials with $40 million worth of cryptocurrency in exchange for unfreezing trading accounts, and [12]witness tampering .
Meanwhile his carefully crafted public image included donations both to political and charity causes which, unbeknownst to the public, were made with other people's money. Over [13]$100 million in stolen FTX funds was allegedly used as political campaign contributions in the 2022 US midterm elections. ®
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[1] https://www.theregister.com/2023/10/03/sbfd_trial_insurance_lawsuit/
[2] https://www.theregister.com/2023/11/03/sam_bankman_fried_ftx_convicted/
[3] https://regmedia.co.uk/2024/01/02/sbf_ftx_prosecutor_letter.pdf
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZZPs217pPAZMXQUlFYUhHgAAAcY&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZZPs217pPAZMXQUlFYUhHgAAAcY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZZPs217pPAZMXQUlFYUhHgAAAcY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZZPs217pPAZMXQUlFYUhHgAAAcY&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offbeat/legal&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZZPs217pPAZMXQUlFYUhHgAAAcY&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[9] https://www.theregister.com/2023/10/10/ftx_python_code/
[10] https://www.rollingstone.com/culture/culture-features/sam-bankman-fried-bahamas-penthouse-1234828704/
[11] https://www.theregister.com/2023/03/29/us_charges_ftxs_sam_bankman/
[12] https://www.theregister.com/2023/08/11/sam_bankman_fried_jailed/#:~:text=On%20Friday%2C%20at%20a%20hearing,Research%20and%20a%20former%20romantic
[13] https://www.reuters.com/legal/bankman-fried-used-customer-funds-100-mln-us-political-donations-prosecutors-say-2023-08-14/
[14] https://whitepapers.theregister.com/
Of course, it also depends on whom you donated to whether or not things are allowed to come to light ....
Given that he's yet to be sentenced, I'm wondering what on earth you are talking about when saying that you "think him rather hard done by"!
And given that additional charges - if leading to being found guilty - would quite possibly only have led to additional concurrent sentences, I don't believe many convicts would care one way or the other. It's really immaterial whether you serve 20 years for 8 crimes, or 20 years for 9.
Remember that we are talking about a country where a rich kid can kill 4 people and get probation.
https://en.wikipedia.org/wiki/Ethan_Couch
So the trial everybody was actually waiting for, the one which would have brought the President of the Bahamas, US politicians etc. to the witness stand, now doesn't happen? I'm shocked!
I'm also shocked! Truly I am! Well, not that shocked as cos you say this is the trial that would have really dug up some interesting stuff and now we will miss out on that. This is the guy that Maxine Waters blew a kiss too!
Sadly, knowing the US two tier justice system I would not be surprised to discover that he will get a sweetheart deal soon.
Me too. It's incredibly convenient for the bribed politicians, don't you think?
Hold up, hold up....
Are they saying all you have to do to is make a big enough, messy enough, complex enough crime that they will get bored by the amount of time and effort it will take them and just let you off?
Huh. Maybe crime has been too small time and needs to step it up.
Re: Hold up, hold up....
The key factors are giving bribes and making illegal campaign contributions. If anyone is ever found guilty of such crimes it suggests somebody else could possibly be accused of receiving bribes or illegal campaign contributions. Such a possibility could never be tolerated. Imagine what might happen if voters found out. If by some confluence of unlikely events a trial actually got as far as a verdict the money might have to be returned.
People in power have strong motives to find and create complications - starting by politely asking the government of the Bahamas to miss one of the charges off the extradition order. It is astonishing that the charge was included in the extradition request paperwork to begin with.
"a line of credit of up to $65 billion dollars"
That alone is a clear sign of how badly managed funny money is. I seriously doubt that there is any honest crypto scheme that could possibly build up to that amount of money.
Of course, I seriously doubt that there is any honest crypto scheme, but that is another matter . . .
I have little interest in the Fried Affaire one way or another; and think him rather hard done by, considering this was all non-violent [ admittedly I equally have no sympathy for Crypto maniacs ], but I think many convicts would be jealous of trials being quashed for expediency's sake.