Daily News

Sam Bankman-Fried Faces Court: ‘It’s Not Crypto On Trial—It’s Classic Fraud And Embezzlement’

Jury selection for the trial of Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX (CRYPTO: FTT), began on Tuesday in the Southern District of New York.

According to a press release posted by the Justice Department, Bankman-Fried is being charged with "two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years. He was also charged with conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and commit campaign finance violations, each of which carries a maximum sentence of five years."

The charges he faces in court relate to allegedly stealing customer funds and lying to investors and lenders.

Also Read: Sam Bankman-Fried's High-Profile Trial Intensifies Washington's Struggle For Clear Crypto Regulation

Speaking about the upcoming trial, Cody Carbone, VP of Policy at the Chamber of Digital Commerce, said, "We're eager to move past FTX's missteps and focus on the US' future in digital assets and blockchain. Remember, it's not crypto on trial—it's classic fraud and embezzlement."

Carbone works to lobby for pro-crypto policy changes and to encourage mainstream acceptance of crypto. He will be speaking at the Benzinga Future of Digital Assets event on Nov. 14 in NYC on a panel examining crypto regulations and their impact on businesses and investors.

The prosecution plans to present customers as witnesses to illustrate the impact of the alleged fraud committed against those who lost their funds. Bankman-Fried, who has pleaded not guilty, could receive a lengthy prison sentence if convicted after the month-long trial.

Last year's FTX collapse began when Coindesk published an article exploring its relationship with Alameda Research. That story led to a surge in customer withdrawals, which FTX could not fulfill. The second trial addressing allegations of financial fraud and bribing Chinese authorities is set for March 2024.

Find out more about Bitcoin and its history. Join Benzinga's Fintech Deal Day & Awards on November 13 and Future of Digital Assets on November 14 in New York City to stay updated on trends like AI, regulations, SEC actions, and institutional adoption in the crypto space. Secure early bird discounted tickets now! What's more, use BZCRYPTO code to get 20% OFF.

Now Read: Shares Of Bitcoin Miner Marathon Digital Are Moving: What's Going On?

Photo: commons.wikimedia.org

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

Leave a reply

Your email address will not be published. Required fields are marked *

Next Article:

0 %