No Second Trial for FTX Founder Sam Bankman-Fried, Prosecutors Say
Federal prosecutors will not pursue a second criminal trial against Sam Bankman-Fried, the founder of failed cryptocurrency exchange FTX, according to a letter filed in court Friday.
A jury found Bankman-Fried guilty on seven counts related to fraud and money laundering in connection with the collapse of FTX and affiliated hedge fund Alameda Research. Prosecutors had separated an additional six charges from Bankman-Fried’s initial trial, including:
- Campaign finance violations
- Conspiracy to commit bribery
- Conspiracy to operate an unlicensed money-transmitting business
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Judge said a second trial would delay justice
In their letter to Judge Lewis Kaplan Friday, however, federal prosecutors said pursuing a second trial would only “delay” justice being served.
“Given that practical reality and the strong public interest in a prompt resolution of this matter, the government intends to proceed to sentencing on the counts for which the defendant was convicted at trial,” the prosecutors wrote.
Bankman-Fried is scheduled to be sentenced on March 28 on the charges from his first trial. It also potentially shortens the legal road ahead for Bankman-Fried, 31, who already faces what is likely to be a decades-long prison sentence.
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Prosecutors said Bankman-Fried defrauded investors and misused their funds to prop up Alameda Research’s risky trades and fund luxury real estate purchases, political donations, and more.
FTX declared bankruptcy in November 2022, and Sam Bankman-Fried was arrested in the Bahamas shortly after. In addition, he was extradited to the U.S. to face criminal prosecution related to FTX and Alameda’s unraveling. Bankman-Fried has said he regrets his handling of FTX but denied intentionally stealing funds or misleading investors.
