Is SBF Struggling with Accusations Including Some Conspiracies?

Sam Bnakman-Fried (SBF’s) problem does not seem to lower as he was sentenced 115 years in jail. But there is a catch, as the proceeding could take months or even years.

SBF Case Highlight

In the SBF case, additional accusations came to light that include the conspiracy that he committed wire fraud on customers and lenders, securities fraud, commodities fraud, and money laundering. Along with a conspiracy to defraud the United States and violate the campaign finance law.

According to this Wednesday report by The New York Times, the US Federal Prosecutors are reportedly investigating SBF for his potential role in manipulating the price of Terra’s UST stablecoin and sister token LUNA, at the beginning of this year. This investigation is still in its earliest state and is attempting to find out whether SBF manipulated prices to the benefit of his firms or entities he owned.

Richard Cannon, Partner at Stokoe Partnership Solicitors, stated that “It is difficult to say at this stage what the likely outcome will be, but the stakes are very high indeed. Sentences in major hoax cases can vary, with Bernie Madoff receiving a 150 year sentence in 2009, whilst in the Enron case a few years earlier the sentences handed out to the prime movers were much lower.”

Ari Redbord, the head of Legal and Government Affairs at TRM Labs, a blockchain intelligence company states that “Given the unprecedented amount of money at issue here SBF will be looking at a high guideline range [for a sentence]. However, there are mitigating factors – does he waive extradition, does he cooperate, does he help locate victim funds. There is still a lot to play out here over the coming months and even years.”

Similar Scams in Past

SBF, the former founder of FTX used the credibility of Bernie Madoff, an American financier who scammed thousands of investors of tens of Billions of Dollars over a period of 17 years. Under which he cover FTX’s problems and the flow of money to Alameda’s Research.

Notably, the fallout of Madoff’s scheme occurred in a bearish phase of the market. Then he was convicted and ordered to pay $170 Billion to victims in 2009, still just $4 Billion was paid to victims 13 years later, as the Madoff Victims Fund noted.

In the Enron accounting scandal, executives of the energy company were convicted years after the scandal. Enron was one of the fastest-growing and supposedly innovative companies in the United States in the 1990s. Kenneth Lay, one of the company’s founders, died before he was sentenced to 45 years in prison, while Jeffrey Skilling, Enron’s former CEO, served 12 years of his 24-year sentence.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing