Sam Bankman-Fried, the founder and former CEO of FTX, is scheduled to stand trial starting Oct. 4 for multiple charges, including seven counts of fraud and conspiracy. The case, slated to last 21 days in court or possibly longer, could have profound implications for the crypto industry, given FTX’s influence as a leading crypto exchange.

The Department of Justice is pursuing two types of charges against Bankman-Fried: fraud and conspiracy. Of the seven charges laid, two are substantive, requiring the prosecution to convince a jury beyond a reasonable doubt that Bankman-Fried committed the alleged crimes. The remaining five charges are “conspiracy” counts, necessitating the prosecution to establish Bankman-Fried’s intention to commit the crimes.

The trial calendar, released on Sept. 28, starts with jury selection on Oct. 3, moving into the substantive proceedings on Oct. 4. The court will be in session for 15 full days in October and another six in November. Notably, the court will take breaks between Oct. 20 and Oct. 25, on weekends, and on public holidays falling on Oct. 9 and Nov. 10.

Source – Courtlistner

Bankman-Fried, who has been in pre-trial detention at the Metropolitan Detention Center since Aug. 11, has made several unsuccessful attempts to secure temporary release. U.S. District Judge Lewis Kaplan, presiding over the case, has ruled against these motions, stating that Bankman-Fried could be a flight risk due to his young age and his lengthy prison sentence if convicted.

If convicted, Bankman-Fried could face a statutory maximum of 110 years in prison, casting a long shadow over FTX and possibly triggering regulatory scrutiny on a broader scale.

Interestingly, this trial is the first of two that Bankman-Fried will face. He is expected to return to court in March 2024 to answer five additional charges related to the misuse of customer funds. This adds another layer of complexity and risk to an already complicated legal panorama.

These legal proceedings will not only determine the future of Sam Bankman-Fried. Still, they could also set a precedent for how the U.S. judicial system handles alleged crypto sector fraud.

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