Important progress in the trial of SBF! The jury collectively affirmed the defendant’s guilt of fraud, with a maximum sentence of 115 years. Sentencing will be announced in March next year.

Major Milestone in SBF Trial! Jury Unanimously Finds Defendant Guilty of Fraud with Maximum Sentence of 115 Years. Sentencing to be Announced in March of Next Year.

Author: Joy, LianGuaiNews

On the eve of FTX’s upcoming one-year anniversary of its collapse, its founder has been found guilty of fraud by a jury. If convicted, he could face a maximum prison sentence of 115 years. The sentencing judgment will be made on March 28, 2024. Although SBF has the right to appeal, based on the month-long court trial, things are not looking good for him.

7 counts of fraud, with a maximum sentence of 115 years, one of the largest financial fraud cases in US history

This week, SBF completed four days of “grueling” testimony. After 3 pm Eastern Time on Thursday (November 2nd), the jurors began deliberations.

The 12-member jury composed of ordinary people includes 9 women and 3 men, ranging in age from 33 to 69, with diverse professional backgrounds. The jury must reach a unanimous decision on each of the seven charges in order to make a verdict. If they fail to reach a unanimous decision by 8:30 pm that evening, it will be postponed until November 6th. Unexpectedly, the jury reached a unanimous decision in less than 5 hours, collectively agreeing that SBF is guilty of all 7 fraud charges.

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At around 7:40 pm that evening, the judge announced the verdict. The lawyers and SBF returned to the courtroom, and shortly after, a guilty verdict was read out in the crowded courtroom, including charges of wire fraud and conspiracy to commit wire fraud against FTX customers, wire fraud and conspiracy to commit wire fraud against Alameda lenders, conspiracy to commit securities fraud against FTX investors, conspiracy to commit commodity fraud against FTX customers, and conspiracy to commit money laundering. According to the US Department of Justice, each of these charges carries a maximum sentence of 5 to 20 years.

After the guilty verdict for all seven charges was announced, if all charges are proven, SBF could face a maximum of 115 years in prison. The prosecution refers to this as “one of the largest financial fraud cases in US history.” Judge Lewis Kaplan has tentatively set the sentencing date for March 28, 2024.

Considering that SBF’s defense lawyer objected to multiple rulings by Kaplan before and during the trial, it is expected that an appeal will be made against the judgment.

When the guilty verdict was announced, SBF remained motionless. The judge instructed him to look towards the jury box. His father Joseph Bankman bent down and lowered his head. His mother Barbara Fried remained still, with a straight back and an expressionless face, staring straight ahead. (Related reading: An in-depth look at how SBF’s elite parents helped him build a cryptocurrency empire)

In addition, in another trial scheduled for March 2024, SBF faces five additional criminal charges, including fraud against clients in derivatives trading, securities fraud against FTX investors, and three conspiracy charges. Therefore, the final trial and sentencing of SBF will not be known for at least six months.

“Trashy” testimony, SBF’s ignorance angers the judge

In the past four days, SBF’s defense content often made people feel “shameless” or “speechless”.

In the closing argument, the prosecutor claimed that SBF conspired to deceive FTX’s clients, lenders, and investors, instructing them to transfer FTX customer funds to subsidiary hedge fund Alameda Research for risk investment, political donations, and expensive real estate.

On the other hand, the defense claimed that SBF made mistakes but his actions were “well-intentioned”. SBF’s lawyer, Mark S. Cohen, said in his closing statement on Wednesday that Sam has done his best to create and operate two multi-billion dollar companies in a new market. Some decisions turned out well, while others turned out poorly. The trial at the Manhattan court continued until after 6 p.m., and at the end of the trial, Cohen appealed to the jury to consider the real situation and conclude that SBF acted in “good faith” during the operation of FTX and Alameda Research, and therefore should not be convicted of fraud. He asked the jury to consider the realities when deliberations begin on Thursday. According to Cohen’s argument, it was “communication errors,” “mistakes,” and “delays” in the real world that caused the collapse of FTX and SBF’s crypto empire, not intentional fraud.

In his closing statement, SBF himself was filled with statements like “I don’t remember” and attributing the crimes to others. Judge Lewis Kaplan scolded him more than once and reminded him to answer the questions posed to him.

For example, SBF claimed that he did not participate in the daily trading decisions at Alameda Research. He said he couldn’t remember all the reports about him before his arrest in December 2022, after the collapse of FTX. Spending customers’ fiat currency deposits was just part of Alameda Research’s “risk management.” The collapse of the crypto exchange was due to Caroline Ellison, the head of Alameda Research, failing to adequately hedge against market slowdowns.

For example, when asked if he was willing to repay the national debt of the Bahamas, where FTX’s headquarters is located, or if he had dinner with the country’s prime minister, Philip Davis, former U.S. President Bill Clinton, and former UK Prime Minister Tony Blair in 2022, SBF replied, “Something like a dinner.” “I don’t remember if there was food. Maybe it was like that.” The prosecutor then showed the jury a video of Clinton, Blair, Bankman-Fried, and Davis together.

Facing such a cunning “debater” who was already prepared, the prosecutor’s questioning was unusually difficult, having to present evidence such as media reports, videos, and SBF’s tweets again and again.

In fact, for SBF, this “playing dumb” and not admitting the facts is a worthwhile “gamble”. As long as he can make a jury member believe his words, then it will all be worth it. But in the end, things didn’t go as planned. Because his former close partners in the business world have already pleaded guilty and testified against SBF. No matter how much he tries to explain, it seems to be of no use. (Related reading: Former close friend testifies against SBF, revealing other courtroom attendees)

Alfred Lin, a partner at Sequoia Capital, who was instrumental in investing in FTX, issued a statement on X expressing his agreement with SBF’s conviction and his satisfaction with the outcome. He believes that this judgment confirms some facts that the public had already known, that SBF misled and deceived many people, including clients, employees, business partners, and investors, including himself and Sequoia Capital.

The jury’s verdict marks an important step in the SBF case, and based on the month-long trial, I believe the final sentencing result will not disappoint all those who are following this case.

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