More

    Is Sam Bankman Fried Free From Charges In 2023?

    Last we heard is that Sam Bankman-Fried has been living under house arrest at his parents’ home since his December 2022 extradition from the Bahamas. Recently we see headlines and tweets screaming “Sam Bankman Fried Free of Charges!” and we can not help but get angry. Calm down, take a breath. The guy got free from one of the 13 charges he’s up against. Also, managed to acquire a new charge against him along the way. However, he may get away with most of the charges due to his reach in high places and having lots of money to spend on freedom. Still confused? Let’s demystify what has been labeled the “on of the biggest financial frauds in American history”. 

    2022 FTX Ponzi Scheme Recap

    In case it’s been a while and you forgot – while enjoying Sam Bankamn Fried-free headlines – you can just go through this timeline of events and be all caught up:

    November 9, 2022 : The Biggest Crypto Market Crash  

    Here’s a full recap on how the biggest Crypto Market Crash happened.

    • Basically Binance , was one of the biggest investors in FTX.
    • CZ got jealous when FTX got so successful, so he wanted to bring it down.
    • Binance sold all their stake in FTX and took $2 Billion in FTT (an FTX token), then decided to liquidate it → They opened Pandora’s box of chaos
    • Sam Bankman Fried filed for FTX’s bankruptcy on November 11.

    This led to an investigation by the SEC and turns out SBF is behind the Greatest Crypto Ponzi Scheme in History! We already covered its details here! 

    December 12, 2022 : Sam Bankman Fried’s Arrest 

    The Southern District of New York (SDNW) sent a sealed indictment to the Bahamian government which led to Sam Bankman Fried’s arrest. Before we got our sigh of justice, the first red flag appeared. SBF was arrested before testifying. In short, it means that prosecutors had to prove SBF guilty without being able to question him! You can know more about this drama here.

    Two days later, out of the absolute blue with an excuse of having a “medical condition”, Sam Bankman fried was free after paying a $250 million bail. Oh but, we rest assured he was under “highly restrictive bail conditions” in his parent’s luxurious house in Palo Alto, California. He was also required to undergo drug and mental health counseling, and refrain from any business transactions over $1,000.

    Sam Bankman Fried Charges: Free or Not?

    Long story short, SBF is facing 13 charges that could set him for a life-time in prison. According to Nicholas Biase – a spokesperson for U.S. prosecutors, these charges could land SBF in jail for a maximum of 115 years. What his lawyers are doing is strategically try to dodge one charge at a time. So, no Sam Bankman Fried is NOT free, at least not yet – hopefully not ever. But here’s basically how SBF is mischievously trying to slip free.

    • When Sam Bankman Fried was extradited from the Bahamas back in December 2022, he was charged with 8 federal counts of fraud and conspiracy.
    • Upon his arrival to the U.S. soils, federal prosecutors added on five more charges related to foreign bribes and bank fraud.

    He plead not guilty to all of them, because why would he admit to 155 years in jail? But that’s not all. Let’s break down what’s been going on in three headlines.

    1- Postponing 5 Charges 

    Bankman-Fired’s lawyers found a smart way to postpone the 5 added charges. Simply by challenging the legality of the five newer charges. Claiming that these newly added charges weren’t part of the original extradition deal from the Bahamas, where FTX was based. Yes, they are trying to drop these 5 charges! A Bahamian court said it would review the challenge. Consequently, Judge Lewis Kaplan agreed to split SBF’s criminal trial into two separate proceedings. 

    Therefore, instead of facing 13 charges all at once, he will face 7 related to the FTX Ponzi scheme on October. Then, the big charges on five counts , including bank fraud and bribing Chinese officials, after a year. So there’s plenty of time until March 11, 2024 for SBF’s lawyers to maneuver that mess.

    2- Free From the Charge of Campaign Finance

    Sam Bankman-Fried will no longer face a campaign finance charge at his upcoming October criminal trial. Why? You can read it in their own words in the letter included in the tweet below. Short version of the story, prosecutors found a “loophole” in this particular charge against him. 

    The campaign finance evidence was likely to be used to show the jury how Bankman-Fried planned to “continue his grip on the industry.” It was supposed to show jurors that his plans included soliciting “favor and influence with politicians.” BUT, that’s all gone now. Well played SBF. One down, 12 to go.

    People were furious with that treatment and lack of Justice. Especially how it seemed like SBF slipped through with this crime like butter. To understand the frustration, you can check the people’s responses on the replies to the following attached tweets.

    3- Witness Tampering Charge

    Sam Bankman Fried was free of jail and out on bail back in 2022. However, it was on the condition that he limits his interactions with the outside. But he did sure as hell did not. 

    On December 18, 2022, former FTX affiliate Caroline Ellison (and ex-girlfriend) pleaded guilty to charges of fraud, money laundering and conspiracy.

    • Ellison agreed to co-operate with the government against Bankman-Fried.
    • She states that he is guilty of the charges, and that he had also received billions of dollars of illegal loans from Alameda research.
    • Two former FTX executives, Gary Wang and Nishad Singh, have also pleaded guilty over FTX’s collapse and agreed to cooperate with prosecutors.

    Ellison is expected to testify against Bankman-Fried at the upcoming trial. But that did not sit well with with the ex-boyfriend SBF. So, what did he do to intimidate her from testifying?

    He leaked contents of Ellison’s diary to a New York Times reporter. With that leak timing on July 26 (2 months ahead of the trial), Federal prosecutors claim they have reason to believe this is a case of witness tampering. So smart. He got rid of one charge and replaced it by another.

    Sam Bankman Fried is NOT FREE, yet.

    So, NO Sam Bankman Fried is not free, yet. More will be revealed after his upcoming trials.

    October 2, 2023 → He will face 7 counts of conspiring to defraud FTX customers.
    On March 11,2024 → He will faces 5 other charges related to foreign bribery conspiracy and bank fraud conspiracy. 

    But what could this mean for the future of Crypto? If it’s so easy to scam, and apparently even easier to get away with it (if you have money and the right people in high places), who is to stop the greedy billionaires from sucking the innocent dry of money? No one. That’s why there’s this theory that web3 is redefining capitalism. There’s nothing to do but be safe and be smart. Check out these guides and educate yourself on Scams and Rugpulls.

    Could Sam Bankman Fried be free of more than one charge against him?
    Could his sentence miraculously be reduced from 155 years to 10 years?-

    Actually, at this point, anything could happen. But don’t be disheartened, because unfortunately that’s the world we live in. Quoting John Doe from the old-but-gold movie Seven “We see a deadly sin on every street corner, in every home, and we tolerate it. We tolerate it because it’s common, it’s trivial. We tolerate it morning, noon, and night.”

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Stay in the Loop

    Stay in the loop with blockchain Witcher and get the lastest updates!

     

    Latest stories

    You might also like...