Sam Bankman-Fried trial: What to expect from one of crypto’s biggest trials to be held on 4 October?
The crypto world braces for Sam Bankman-Fried's monumental trial, facing 7 counts of conspiracy and fraud. Key witnesses, FTX's fall, and a potential 100-year sentence make this one of crypto's biggest trials.
Highlights
- Sam Bankman-Fried, former FTX CEO, faces a 21-day trial starting 4 October 2023
- Bankman-Fried could potentially serve more than a century in prison if convicted
- The trial revolves around $8.9 billion in missing funds, making it a significant fraud case
On 4 October 2023, Sam Bankman-Fried (SBF), the former CEO of FTX, will begin his long-awaited trial. SBF is to face a historic trial lasting 21 days, scheduled from 4 Oct to 9 Nov. Since 11 August, Bankman-Fried has been detained at the Metropolitan Detention Centre in New York City awaiting trial. He has submitted numerous unsuccessful applications for temporary release to enable him to prepare for his trial.
After the collapse of FTX, he’s been accused of seven counts of conspiracy and fraud, making it one of the most significant crypto-related trials in history.
SBF faces charges like wire fraud, money laundering, conspiracy to commit commodities fraud, and more. If convicted, he could spend over 100 years in jail. The trial could become one of the most significant fraud cases in US history due to $8.9 billion in missing customer deposits and the investor fund.
Witnesses and key figures
The trial will include testimonies from former FTX clients, investors and staff. These witnesses will shed light on FTX’s deposit policy, expectations of custodianship, and their interactions with SBF.
SBF's involvement in US politics, including donations of $40 million to Democratic Party committees and considering paying Donald Trump to not run for president, has added intrigue to the case. Despite his not-guilty plea, the trial remains a pivotal moment in the crypto industry.
FTX dramatic fall
FTX, once a leader in the crypto industry, saw a meteoric rise and a sudden fall. Despite high-profile sponsorships and campaigns, it declared bankruptcy in Nov 2022. The collapse was triggered when Binance announced it would sell its FTX token holdings, causing a liquidity crisis.
In November 2022, FTX, FTX US, and Alameda Research were in big financial trouble and had to declare bankruptcy. John Ray III, the person who managed the Enron bankruptcy, was chosen as the temporary CEO to figure out what assets were left and how to make money from them.
Stay tuned to Web3Cafe for more updated from the trial.
