By The FirstThe indictment from the Southern District of New York (SDNY) against disgraced FTX CEO Sam Bankman-Fried was unsealed by a federal judge this morning. SDNY has charged the 30-year-old Bankman-Fried with eight counts including wire fraud on customers and lenders and conspiracy, including conspiring to defraud the United States and violate campaign finance laws.
If convicted on all counts, Bankman-Fried faces up to 135 years in prison. For context, infamous financial fraudster Bernie Madoff was sentenced to 150 years.
Here are the eight counts Sam Bankman-Fried is facing and the punishment each one carries.
COUNT 1: Conspiracy to Commit Wire Fraud on Customers (Up to 20 years in prison)
COUNT 2: Wire Fraud on Customers (Up to 20 years in prison)
COUNT 3: Conspiracy to Commit Wire Fraud on Lenders (Up to 30 years in prison)
COUNT 4: Wire Fraud on Lenders (Up to 30 years in prison)
COUNT 5: Conspiracy to Commit Commodities Fraud (Up to 5 years in prison)
COUNT 6: Conspiracy to Commit Securities Fraud (Up to 5 years in prison)
COUNT 7: Conspiracy to Commit Money Laundering (Up to 20 years in prison)
COUNT 8: Conspiracy to Defraud the United States and Violate the Campaign Finance Laws (Up to 5 years in prison)
In addition to the federal charges being brought against Bankman-Fried, U.S. Securities and Exchange Commission has filed a civil complaint against the FTX founder. According to a press release, the SEC claims Bankman-Fried “concealed his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors.”
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC Chair Gary Gensler. “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws.”
Click here to read the full unsealed indictment against Sam Bankman-Fried.
Sam Bankman-Fried is unlikely to serve the maximum sentence if he’s convicted. However, this will be the first-high profile crypto-fraud trial in U.S., and will serve as a benchmark for future cases. The justice system is going to want to make an example of him.