Sam Bankman-Fried, the embattled co-founder of FTX, won't be facing a second trial on additional charges after being convicted of substantial fraud last month, according to prosecutors. The decision was communicated to US District Judge Lewis Kaplan through a letter on Friday.
The government has deemed it expedient to abandon plans to try Bankman-Fried for a conspiracy to bribe foreign officials, commit bank fraud, and operate an unlicensed money transmitting business, among other charges.
The 31-year-old crypto magnate, who was found guilty on seven counts of fraud and conspiracy, now potentially faces several decades in prison.
Prosecutors stated that much of the evidence for a second trial had already been presented in Bankman-Fried's original trial and could be taken into consideration by Judge Kaplan during the sentencing set for March 28, 2024.
The decision aims to advance the public’s interest in a prompt and fair resolution of the case without the delays that would be necessitated by a second trial.
Prosecutors argued that Bankman-Fried directed the movement of FTX customer funds into Alameda Research, associated hedge fund. These funds were used for high-risk investments, political donations, and expensive real estate purchases, ultimately leading to both companies filing for bankruptcy last year.
With Bankman-Fried's conviction, Manhattan US Attorney Damian Williams has achieved a significant victory in one of the most high-profile criminal prosecution cases in the crypto universe.
