The crypto world woke up to disbelief on Tuesday when FTX founder Sam Bankman-Fried (SBF) pleaded not guilty to the misappropriation of funds which led to the collapse of his crypto exchange. Thousands of investors lost millions of dollars due to the FTX collapse. As SBF walked out on bail, many crypto users subscribe to the conspiracy theory that he pulled strings with ‘friends’ in high places to dodge the bullet and find a way out.
Prison Is The Destination For Sam Bankman-Fried, Sooner Or Later
While pleading not guilty might be a strategic move by SBF to crack a better deal, it is going to be a bumpy ride for the FTX founder going forward. Criminal charges against SBF include conspiracy to commit money laundering, wire fraud, conspiracy to misuse customer funds, and others. Besides this, the former FTX CEO faces suits by the SEC and CFTC over similar charges. If convicted on all charges, SBF could face up to 115 years in jail. His trial is scheduled for October 2, 2023. Bankman’s lawyers, Mark Cohen and Christian Everdell have the humongous task of finding a way out of the situation for the former billionaire.
According to initial reports, Sam Bankman-Fried was expected to plead not guilty anyways. This is despite the fact that FTX co-founder and former CTO Gary Wang and Alameda Research CEO Caroline Ellison both pleaded guilty to federal criminal charges in December 2022, in connection with the FTX fiasco. Wang and Ellison agree to corporate with the authorities and this might go against SBF. The former FTX CEO was released by a US judge on a $250M bail bond, following his extradition to America from the Bahamas. The bail package allows him to remain under house arrest at his parents’ home in Palo Alto, California.
The Road Ahead For SBF
The strength of the criminal case against SBF is extremely strong. His willingness to go to the court hints that the deal he was offered was not on the expected lines. SBF going to trial means his story entering the public records. This development takes his case one step further from the ‘secret’ settlement he was seeking. Crypto users learning more about SBF’s role in the FTX case is a huge possibility now. The steps taken so far appear like desperate attempts by SBF and his team to evade the eventuality. However, they seem very disconnected from the ground reality. The disgraced crypto founder walking free of all charges is an extreme rarity.
Sam Bankman-Fried Is Going Down Without Any Doubt
There are many reasons SBF walking out with the ‘innocent’ tag is highly unlikely to happen. However, the FTX founder’s continuous attempts to fight the charges against him despite such strong evidence only hint at the backing of hidden support and malign influence. Some even speculate the Bankman’s political donations might come in handy here. However, the US justice system stands between him and freedom. While there might be existing corruption at certain levels, the justice system in the US is too thorough to guarantee SBF an escape despite all the influence he is trying to garner.
Besides the authorities closing in on SBF, influential voices within the industry continue to call for strict action against the FTX founder. Whether the rumors of SBF garnering the support of influential people are true or not, it is unlikely to make a visible difference. The recent steps by SEC are a testament to how serious the US authorities are about regulation in the crypto space. The only thing that stands tall amidst all the ongoing debate is the US justice system.