Sam Bankman-Fried, the indicted Founder of the now-bankrupt crypto exchange FTX, may be staring at a "very long sentence" if convicted of fraud. The judge overseeing the trial starting next week expressed uncertainty about Bankman-Fried's future, suggesting serious consequences.
The comments by US District Judge Lewis Kaplan came in response to a request from the 31-year-old former billionaire, who sought temporary release from jail during the trial to facilitate closer coordination with his defense team.
"Flight Risk"
Kaplan denied this request, deeming Bankman-Fried a flight risk. "Your client in the event of conviction could be looking at a very long sentence," Judge Kaplan cautioned during a hearing at the Manhattan federal court.
Bankman-Fried, who has maintained his innocence, faces seven counts of fraud and conspiracy arising from the collapse of FTX in November 2022. If convicted, he could potentially be sentenced to a maximum of 110 years in prison, Reuters reported. While his legal team had argued for temporary release, citing the need for comprehensive trial preparations, Judge Kaplan acknowledged their concerns.
To address this, he committed to facilitating early morning meetings between Bankman-Fried and his attorneys, allowing crucial discussions and strategizing to occur before the commencement of trial proceedings.
SBF Accused of Witness Tampering
Danielle Kudla, the prosecutor, pointed out that Bankman-Fried had ample time to prepare for the trial during the nearly eight months he spent out on bail at his parent's residence in California. During this time, allegations of witness tampering surfaced, leading to his incarceration on August 11. One such instance involved Bankman-Fried allegedly sharing the private writings of Caroline Ellison, the former CEO of Alameda Research, with a New York Times reporter.
In addition, the prosecutors contended that Bankman-Fried and his legal team had not met the necessary burden of proof to justify temporary release. Additionally, they raised doubts about the adequacy of the proposed supervision arrangement, suggesting it might not meet the legal requirements for a temporary release.
The judge's decision means that Bankman-Fried will remain in jail for the trial, which centers on allegations about his role in FTX.
The trial of Sam Bankman-Fried is scheduled to commence on October 3 and could extend to over six weeks. The outcome of this trial holds significant implications not only for Bankman-Fried personally but also for the broader cryptocurrency ecosystem as it grapples with issues of trust, transparency, and accountability.
This article was written by Jared Kirui at www.financemagnates.com.
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