Important progress in the SBF trial! The jury found guilty of fraud and was sentenced to up to 115 years, with sentencing to be pronounced in March next year

By Joy, PANews

As FTX approaches its one-year anniversary of collapse, its founder was found guilty of fraud by a jury and carries a maximum sentence of 115 years in prison if convicted. The sentencing sentence will be handed down on March 28, 2024, and although SBF has the right to appeal, judging from the previous one-month court trial, everything is not in his favor.

7 counts of fraud, punishable by up to 115 years, one of the largest financial fraud cases in U.S. history

This week, SBF completed four days of “hard” testimony, and the jurors began their deliberations after 3 p.m. ET on Thursday (Nov. 2).

The 12 jurors, made up of ordinary people, included nine women and three men, ranging in age from 33 to 69 and with a variety of professional backgrounds. Jurors must reach a consensus on each of the seven counts before they can reach a verdict, and if they do not reach a unanimous verdict by 8:30 p.m. that night, they will need to postpone until Nov. 6. Unexpectedly, the jury reached a unanimous verdict in less than 5 hours, and the collective found SBF guilty of 7 counts of fraud.

At around 7:40 p.m. that night, the judge said the verdict had been handed down. The lawyer and SBF returned to courtroom and soon after, in a packed courtroom, were convicted of wire fraud and conspiracy to commit wire fraud against FTX customers, wire fraud and conspiracy to wire fraud against Alameda lenders, conspiracy to commit securities fraud against FTX investors, conspiracy to defraud FTX customers in goods, and conspiracy to launder money. According to the U.S. Department of Justice, each of these charges carries a maximum sentence ranging from 20 to 5 years.

If convicted on all seven counts, SBF faces up to 115 years in prison, which prosecutors say is “one of the largest financial fraud cases in U.S. history.” Judge Lewis Kaplan tentatively set the sentencing date for March 28, 2024.

SBF’s defense attorneys are expected to appeal the verdict, given that they opposed Kaplan’s multiple rulings before and during the trial.

When the guilty verdict was announced, SBF stood motionless and the judge instructed him to look at the jury bench. His father, Joseph Bankman, bent over and bowed his head. His mother, Barbara Fried, remained motionless, with her back straight and expressionless, staring straight ahead. (Related reading: How did SBF’s elite parents help him build a crypto empire?) ）

In addition, in another trial, which is currently scheduled for March 2024, SBF faces five additional criminal charges, including defrauding customers in derivatives trading, securities fraud against FTX investors, and three conspiracy charges. Therefore, it will take at least half a year for the final trial and sentencing of SBF to be known.

“Rotten” testimony, SBF asked three questions without knowing how to anger the judge

In the past four days, SBF has often felt “shameless” or “speechless” in the content of its own defense.

In closing arguments, prosecutors allege that SBF willfully conspired to defraud FTX’s customers, lenders, and investors by directing the transfer of FTX customer funds to an affiliated hedge fund, Alameda Research, for venture capital, political contributions, and expensive real estate.

The defense, on the other hand, claimed that SBF had made a mistake but that it had acted in “good faith”. SBF’s lawyer, Mark S. Cohen, said in closing remarks Wednesday’s trial that Sam had done his best to start and operate two multibillion-dollar businesses in a new market. Some decisions turn out well, while others turn out bad. At the end of the trial, which lasted in the Manhattan courtroom until just over 6 p.m., Cohen appealed to the jury, asking the jury to find 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 take into account the realities of the situation when it began its deliberations on Thursday. According to Cohen, it was “real-world miscommunication,” “mistakes,” and “delays” that brought down FTX and SBF’s crypto empires, not deliberate fraud.

SBF himself was full of statements such as “I don’t remember” and blaming others for the crime. Judge Lewis Kaplan scolded him more than once and reminded him to answer the questions asked.

For example, SBF said he was not involved in Alameda Research’s day-to-day trading decisions. He said he couldn’t remember all the reports about FTX after its collapse and before his arrest in December 2022. Spending a client’s fiat deposit is just one part of Alameda Research’s “risk management”. The crypto exchange’s collapse was caused by the failure of Caroline Ellison, the head of its Alameda Research trading firm, to adequately hedge against the market downturn.

For example, ask him if he would be willing to repay the national debt of the Bahamas, where FTX is headquartered, and if he would have dinner with the country’s Prime Minister Philip Davis, former U.S. President Bill Clinton, and former British Prime Minister Tony Blair in 2022. SBF replied, “There’s a dinner or something.” "I don’t remember if there was food. It may be so. Prosecutors then showed the jury a video of Clinton, Blair, Bankman-Fried and Davis together.

In the face of such a cunning “debater” who had been prepared for a long time, the prosecutor’s cross-examination was extremely difficult, and he had to come up with evidence such as media reports, videos, and SBF’s tweets to corroborate it again and again.

In fact, for SBF, such a “rotten” testimony that does not admit the facts is a worthwhile “gamble”. As long as he can convince a jury member of his word, it’s all worth it. But in the end, it backfired. Because his former close friends in the mall have already pleaded guilty and appeared in court to charge SBF. No amount of justification seems to help. (Related reading: Former close friend appeared in court to accuse SBF, and the list of other court appearances was revealed)

Alfred Lin, a partner at Sequoia Capital, who led the investment in FTX, issued a statement on X saying that he agreed with SBF’s conviction and was pleased with the outcome. He believes that the verdict confirms some of the facts that have long been known to the public, and that SBF has misled and deceived many people, including customers, employees, business partners and investors, including himself and Sequoia Capital.

The jury’s verdict marks an important step in the SBF trial, and judging from the month-long trial, the final sentencing result will not disappoint all those who follow the case.