Coin Edition -
- Sam Bankman-Fried will not go through a second trial as prosecutors decide against it.
- The sentencing of the 31-year-old crypto founder is set for March this year.
- FTX debtors continue to claw back funds misused by former FTX executives.
Following a decision by the Department of Justice (DoJ) prosecutors, it is certain that troubled crypto founder Sam Bankman-Fried (SBF) will not go to a second trial concerning his central role in the collapse of bankrupt crypto exchange FTX.
While a second trial was expected to happen in March this year, prosecutors handling the case decided against it. The decision drew criticism from the crypto community, especially from notable experts.
The prosecutors argue that a prompt resolution of the trial aligns with “strong public interest” and outweighs the benefits of a second trial. With that out of the way, Bankman-Fried has only the sentencing to look forward to and risks over 100 years in prison.
The trial of the disgraced founder was one of the major events in 2023. With his sentencing set for March 2024, all eyes remain fixed on the trial, especially as FTX creditors look to recover their lost assets.
The collapse of the Bankman-Fried-led FTX struck the crypto ecosystem into a worsened crypto winter. At the same time, it also precipitated a regulatory onslaught that spilled over into 2023. This came as regulators sought to offer more protection to crypto users within their territories.
In early November, a jury found Sam Bankman-Fried guilty of stealing and misusing customer funds. The founder was also convicted of market manipulation, money laundering, and wire fraud charges.
Meanwhile, FTX and its debtors continue to push for the fast resolution of creditors’ claims by clawing back as many recoverable funds as possible. In late December, FTX settled for an agreement with the 31-year-old founder and others to recover funds spent on one of its acquisitions.
In particular, FTX is seeking to recover over $240 million that former executives paid to acquire the stock trading platform Embed. Last May, FTX debtors filed a lawsuit against the former FTX executives and Embed over the deal. Importantly, the move to sue highlights the efforts of the new FTX administration to recover misused funds since the exchange collapsed.
Elsewhere, the sharp recovery in cryptocurrency prices has boosted creditors’ optimism about recovering their lost assets. However, a proposed repayment plan unveiled by FTX appears to be the remaining challenge.
In the plan filed in December, the crypto exchange unveiled plans to pay customers the value of their crypto assets at the time of the collapse. The widely criticized plan was met with fierce backlash, considering that crypto prices have recovered. Moreover, some customers opposed the plan by stating that they wanted to recover the crypto assets, not their value.
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