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Business News/ Companies / Sam Bankman-Fried Won’t Face a Second Criminal Trial
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Sam Bankman-Fried Won’t Face a Second Criminal Trial

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Prosecutors say they won’t seek to try additional charges against the FTX founder after winning fraud conviction

The move clears the way for FTX founder Sam Bankman-Fried to be sentenced on March 28. A second trial would have delayed that sentencing. Bankman-Fried already faces the possibility of decades in prison (AP)Premium
The move clears the way for FTX founder Sam Bankman-Fried to be sentenced on March 28. A second trial would have delayed that sentencing. Bankman-Fried already faces the possibility of decades in prison (AP)

Federal prosecutors said Friday that they wouldn’t try Sam Bankman-Fried on additional criminal charges that weren’t part of the fall trial that resulted in the FTX founder’s conviction for fraud related to the collapse of his crypto exchange.

The move, announced in a letter to the presiding judge, clears the way for the FTX founder to be sentenced on March 28. A second trial would have delayed that sentencing, and Bankman-Fried already faces the possibility of decades in prison.

“The Government has concluded that the public interest in a prompt resolution of this matter outweighs the interest in holding a separate trial," the letter said.

Prosecutors said Bankman-Fried’s sentence would likely include restitution for the victims of his crimes. Because the evidence that would have been presented at a second trial was similar to the evidence from the first proceeding, the judge can consider the additional alleged conduct in determining Bankman-Fried’s sentence, they said.

A spokesman for Bankman-Fried declined to comment.

U.S. District Judge Lewis Kaplan in June split the criminal charges against Bankman-Fried into two trials, due to ongoing litigation in the Bahamas that had the potential to delay the case.

In the first trial, Bankman-Fried was convicted of seven criminal counts for stealing billions of dollars from customers of his collapsed crypto exchange.

The second trial, which included allegations related to bank fraud and foreign bribery, had been scheduled for March 2024.

During the fall trial, prosecutors alleged Bankman-Fried directed a scheme to use FTX money to repay the debts of its sister hedge fund, Alameda Research. He also used the money to fund risky investments, make political donations and buy luxury real estate, witnesses testified.

Three of his onetime top deputies, who pleaded guilty and cooperated with the government, testified that they committed crimes at Bankman-Fried’s direction. The lack of a second trial clears the way for them to be sentenced, since they won’t be needed to take the witness stand again.

Bankman-Fried, who testified in his own defense, told jurors that he didn’t defraud customers, but said he should have had better risk management measures in place. His lawyers have said he plans to appeal.

Bankman-Fried is currently being held at a federal jail in Brooklyn while awaiting sentencing.

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