Sam Bankman-Fried, the former cryptocurrency mogul, faced serious accusations during his sentencing hearing on Thursday. U.S. District Judge Lewis Kaplan announced that Bankman-Fried had lied under oath during his fraud trial last year. This development marks a critical juncture in the ongoing FTX lawsuit. The judge found Bankman-Fried guilty of perjury, stating he was aware his hedge fund used customer deposits from FTX, the cryptocurrency exchange he founded.

The FTX lawsuit has captured widespread attention, highlighting the trial’s significance in financial fraud history. Bankman-Fried, at 32, risks decades in prison after a jury convicted him on November 2. He faced seven charges of fraud and conspiracy related to FTX’s collapse in November 2022. Experts predict the sentence could span 20 to 30 years, underscoring the gravity of the offenses.

Sam Bankman-Fried’s Claims Challenged in FTX Lawsuit

During the sentencing hearing, Judge Kaplan outlined the extensive financial damage caused by the collapse of FTX. He reported that FTX customers suffered an $8 billion loss, while equity investors lost $1.7 billion. Additionally, lenders to Alameda Research, the hedge fund Bankman-Fried founded, lost $1.3 billion. Kaplan rejected the argument that bankruptcy proceedings would fully repay customers and creditors, labeling it misleading and speculative.

The judge criticized Bankman-Fried’s assertion, comparing it to a thief gambling stolen money in Las Vegas. He emphasized that such winnings could not justify a reduced sentence. This stance indicates the court’s rigorous approach to addressing the financial repercussions of the FTX collapse. The losses incurred underscore the impact on investors and the broader cryptocurrency market.

Experts Predict Decades in Jail for FTX Founder

Legal experts weigh in on the potential outcome of the FTX lawsuit, offering varied predictions on Sam Bankman-Fried‘s sentence. Yesha Yadav, a law professor, suggests a 20-25 year range. Neama Rahman, a former federal prosecutor, expects a sentence of 20–30 years. These estimations reflect the case’s severity and its implications for financial regulation and the cryptocurrency industry.

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The post FTX Lawsuit: Sam Bankman-Fried lied under oath at trial appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am