Prosecutors are citing “strong public interest” in resolving a major case against the disgraced founder of a crypto exchange.
United States prosecutors have decided not to open a second trial against cryptocurrency exchange FTX founder Sam Bankman-Fried, who has already been found guilty of fraud and money laundering, and instead proceed with sentencing.
Prosecutors said in a letter filed in a New York court on Friday that pursuing a second trial of the disgraced tycoon would only serve to delay the case against him, which was already strong enough.
“Given this practical reality and the strong public interest in a speedy resolution of this matter, the government intends to proceed with sentencing on the counts for which the defendant was convicted at trial,” prosecutors said in the letter sent to Judge Lewis Kaplan last week year the first criminal trial against Bankman-Fried.
In November, a jury found Bankman-Fried guilty of seven counts of fraud, embezzlement and criminal conspiracy, among other charges.
The 31-year-old was accused of using billions of dollars from customer deposits on FTX to cover his hedge fund's losses, pay off loans and buy luxury properties, among other large personal expenses.
During the trial he had admitted making “mistakes” that ultimately resulted in people being injured, but pleaded not guilty, claiming he never intended to steal.
After Bankman-Fried's crimes came to light in 2022, billions of dollars were lost, which also contributed to the worsening of the crypto market downturn that began earlier this year.
Federal prosecutors had previously called the case “one of the largest financial fraud cases in American history.”
Bankman-Fried is scheduled to be sentenced March 28 and faces up to 110 years in prison.
Prosecutors argued that much of the evidence that could be presented in a second trial had already been presented in the first trial and that a second trial would have no impact on how long he would face in prison.
They also said victims would not benefit from confiscation or restitution orders if sentencing was delayed.
Bankman-Fried is expected to appeal his conviction.
He had previously been extradited from the Bahamas, where his companies were based.
Since then, the United States and the Bahamas have been arguing over which prosecutors have the legal jurisdiction and right to prosecute him. U.S. prosecutors wrote Friday that the U.S. government “has no timeline for when the Bahamas might respond to their request.”
Bankman-Fried, a graduate of the Massachusetts Institute of Technology (MIT), has been in jail since August and had his release on bail revoked after a judge concluded he likely tampered with potential witnesses in the trial.