- Bankman-Fried was indicted on seven charges, including wire and securities fraud
- The counts of wire fraud, money laundering each carry a sentence of up to 20 years
The former CEO of bankrupt exchange FTX will be in court for three weeks, from Oct. 4 to Nov. 9.
US Federal Judge Lewis Kaplan, who is presiding over the case, denied Sam Bankman-Fried’s request for bail on grounds that he might flee. SBF faces severe charges and a lengthy prison term if convicted.
He is indicted on seven charges
Bankman-Fried was indicted on seven charges: securities fraud, conspiracy to commit commodities fraud, two counts of wire fraud conspiracy, one count of conspiracy to commit money laundering, and two counts of wire fraud.
The key witnesses
The Department of Justice will call up a number of witnesses for the trial, including former FTX clients, investors and employees. Former employees who are set to appear include Bankman-Fried’s ex-girlfriend and former Alameda Research CEO, Caroline Ellison, and former FTX engineering director Nishad Singh.
Significant prison time
If convicted, Bankman-Fried faces considerable prison time. The counts of wire fraud, wire fraud conspiracy, and money laundering each carry a sentence of up to 20 years.
CNN reports that he faces more than 100 years if found guilty of all charges the federal government has brought against him.
Bankman-Fried was active in US politics. In 2022, he donated over $40 million to Democratic Party candidates and officials, who are now facing backlash.
The former CEO and founder of the once-flourishing crypto exchange pled not guilty to all charges brought against him in August this year.
Still second to Madoff
According to legal specialists, Bankman-Fried’s actions constitute one of the most notable cases of fraud in US history. When FTX collapsed, clients and investors lost a total of $8.9 billion.
However, SBF is still second to Bernie Madoff, the biggest financial fraudster, who masterminded a $19 billion Ponzi scheme.
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