SBF Found Guilty on All Charges – The Day We Never Thought Would Come
Former FTX CEO, Sam Bankman-Fried, has been found guilty of all seven charges against him in a criminal trial held in New York.
The jury’s verdict was delivered after approximately four hours of deliberation.
Bankman-Fried was convicted on two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy, and one count of money laundering conspiracy.
His sentencing is scheduled for March 28, 2024, to be determined by New York District Judge Lewis Kaplan, although government prosecutors will make a recommendation.
Each of his crimes carries a maximum prison sentence of between 5 and 20 years, with wire fraud, wire fraud conspiracy, and money laundering conspiracy carrying a maximum sentence of 20 years.
During a press conference outside the court, the New York Southern District U.S. Attorney Damian Williams characterized Bankman-Fried’s actions as “a multibillion-dollar scheme designed to make him the king of crypto” and one of the largest financial frauds in American history.
Bankman-Fried’s attorney, Mark Cohen, expressed disappointment with the verdict but maintained his client’s innocence.
It is worth noting that other key FTX executives, including former Alameda CEO Caroline Ellison, FTX co-founder Gary Wang, and former FTX engineering head Nishad Singh, had pleaded guilty to various charges and cooperated with the government in testifying against Bankman-Fried during the five-week trial.
Bankman-Fried had pleaded not guilty to all charges and attempted to distance himself from key decisions related to FTX’s November 2022 collapse, blaming Wang for certain functions that led to Alameda’s trading of funds it didn’t possess and asserting he was unsure about Alameda’s line of credit.
He also defended his actions regarding FTX customers’ funds, framing it as Alameda borrowing from the exchange rather than fraudulently taking funds from customers.
What is Next for SBF?
As the dust settles on the verdict in the trial of Bankman-Fried, the convicted entrepreneur faces the daunting prospect of a maximum sentence of 115 years in federal prison when he returns to U.S. District Judge Lewis Kaplan’s courtroom on March 28, 2024.
Beyond the length of his sentence, the question of which federal prison he will be sent to looms large. According to Decrypt, Christopher Zoukis, a legal consultant experienced in navigating the federal prison system, speculates that Bankman-Fried’s likely destination will be a medium-security federal prison in California.
Typically, individuals sentenced to 25 years or more are designated for medium-security prisons.
Despite his trial being held in New York, Bankman-Fried’s previous residence under house arrest in Palo Alto suggests he may be placed closer to his family on the West Coast. However, the West Coast medium-security prisons come with their own set of challenges, including higher levels of violence and complex prison dynamics.
Federal prisons are categorized by security level, and medium-security institutions, in particular, exhibit a wide range of conditions and risks, making it difficult to predict the specific environment Bankman-Fried may encounter.
While one of the California medium-security federal prisons, FCI Victorville Medium, is known for its violence, the Federal Bureau of Prisons may aim to avoid the negative publicity that could arise from any harm to Bankman-Fried during his incarceration.
“Softer” medium-security prisons in California, like FCI Herlong, have faced their own issues, including safety concerns for certain inmate populations.
Ultimately, Bankman-Fried may find himself assigned to FCI Herlong, USP Lompoc north of Santa Barbara, or FCI Mendota outside of Fresno.
Requests for more favorable prison assignments are rarely granted, and Zoukis anticipates that Bankman-Fried’s documented legal requests for Adderall and vegan food may not significantly influence his placement.
The former crypto mogul could be facing an indefinite period with limited comforts and challenging conditions as he embarks on this new chapter behind bars.
