Prosecutors Will Not Pursue 2nd Trial Against FTX’s SBF

The former CEO of collapsed FTX, Sam Bankman Fried, will not face a second trial as on December 29, a United States prosecutor informed the New York federal court they will not pursue a 2nd trial against SBF. 

Sam was convicted in seven cases including fraud, conspiracy, and others. He was identified as the main element responsible for FTX’s unprecedented demise. In his early days in the industry, SBF was known for his trading skills, and recently, it was reported that he gave free trading tips to jail guards.

The now-canceled 2nd lawsuit was earlier scheduled in March, in which there were five different charges against Sam. However, the federal court gave prosecutors time to rethink and let the court know whether to proceed. 

Overview of 1st Trial 

After almost 20 witnesses testified in November 2023, a jury found SBF guilty in 7 criminal cases after one hour of deliberation.  

Conspiracy to bribe international officials, bank fraud, operating a money transferring company illegally, crucial security fraud, and commodity fraud were some of the serious charges that were to be presented in the 2nd trial as per U.S prosecutors. 

Sam Bankman Fried’s sentencing date is March 28, 2024, and he is expected to face a jail term of more than 100 years.

Following the news of the collapse of the third biggest cryptocurrency exchange, FTX, the entire market went downwards, and millions of crypto investors lost money. In 78 hours, over $200 Billion of funds were wiped out.    

The FTX incident became one of the biggest and most talked about incidents, which has affected the market in the last 12-14 months. Many other companies in the sector went bust following the news of FTX’s collapse. 

Hundreds of companies lost funds as they had sizable investments in the FTX ecosystem, and some of them were also trading their assets using FTX.

Sam, Caroline Elison, and Nisad Singh were among the primary officials believed to be responsible for the FTX and its enormous ecosystem.   

FTT Token Movement Post FTX Failure

Before the demise of FTX, the FTT token price chart looked like most other ecosystem tokens out there. A sudden price decline was observed on November 2 2022, when a reputed crypto media outlet reported on a leaked copy of the balance sheet of Alameda Research. The news circulated as fire which led to the sudden death of FTX.

In just a few hours, the FTT token lost a significant portion of its trading value, and in 48 hours, it fell below the $50 mark. When writing, FTT was trading at $3.54. In the past six months, the FTT token showed an improvement of 137%.

As per market analysts, FTT price is rising due to the back-to-back court decisions in favor of the users whose funds are stuck in the exchange account to date.

Disclaimer

The views and opinions stated by the author or any people named in this article are for informational ideas only and do not establish financial, investment, or other advice. Investing in or trading crypto or stock comes with a risk of financial loss. 

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.