Prosecutors will not file a second lawsuit against FTX founder

There will be no second lawsuit against Sam Bankman-Fried, the founder of crypto exchange FTX. There were five remaining charges against the former CEO, but the judge had dropped them ‘to avoid delaying the trial’.

The lack of a second trial is a conscious choice by the prosecutors, write, among others The Wall Street Journal and Reuters news agency. Much of the evidence presented in the current trial relates to that of the five remaining charges, can be read in a letter from the prosecutors to the judge. That evidence will most likely also be included in the judge’s sentence, which will be announced on March 28, 2024. The prosecutors also believe that it is of ‘strong public interest’ that the case be concluded quickly.

Bankman-Fried was found guilty of fraud and conspiracy in November. The FTX founder had stolen $8 billion from his customers. That amount was transferred to his investment fund Alameda Research. When this came to light, Bankman-Fried decided to sell FTX-linked tokens in November last year. In December 2022, Bankman-Fried was arrested in the Bahamas, a month after FTX filed for bankruptcy.