Sam Bankman-Fried to Remain in Custody Until Mid-November During Trial

Former FTX CEO Sam Bankman-Fried will remain in custody throughout his trial until mid-November, according to a recent decision by District Judge Lewis Kaplan. The trial, set to run from October 4th to November 9th, will delve into seven fraud charges against Bankman-Fried related to the collapse of the $32-billion cryptocurrency exchange FTX.

NEW: SBF's appeal for temporary release before trial denied. Jury selection starts on October 3rd.

— Coinwaft (@coinwaft) September 29, 2023

During a hearing on September 28th, Judge Kaplan denied a motion for Bankman-Fried’s temporary release, expressing concerns that the former FTX CEO might be a flight risk if the trial did not go in his favor. These concerns were fueled by Bankman-Fried’s young age and the potential for a lengthy prison sentence if convicted.

“I think he’ll get the maximum sentence,” remarked Michael Kanovitz, a partner at Loevy & Loevy law firm.

“If he’s found guilty, I think he will get the maximum sentence.”

Micheal Said.

Kanovitz’s prediction is based on the severity of the crimes and Bankman-Fried’s conduct during the judicial process. Courts typically consider the seriousness of the crime and the defendant’s behavior when determining the sentence.

“If the government can prove he knowingly stole billions of dollars and destroyed documents to cover it up, that pushes the sentence toward the high end of the range.”

Kanovitz explained.

He also noted that courts might be lenient during sentencing if the defendant cooperates and behaves well during the trial, but he believed Bankman-Fried hadn’t done so.

“Slightly less resolute,” Jeremy Hogan, a partner at Hogan & Hogan, also anticipated a substantial prison term.

“SBF is going to prison for quite some time. But I don’t know enough about it to get into details. Just a long time — more than 10 years.”

Bankman-Fried faces a maximum sentence of 115 years if found guilty on all counts. The charges include committing wire fraud on FTX customers and Alameda Research lenders and various conspiracy charges. The burden of proof lies with the government, which must establish Bankman-Fried’s guilt beyond a reasonable doubt.

Commercial litigator Joe Carlasare speculated on the likely defense strategy.

“The defense will likely challenge the depiction of SBF as the central figure and instead portray him as a scapegoat, influenced by those around him who have already pleaded guilty.”

Key witnesses, including former inner circle members, are set to testify against him. This trial carries considerable weight within the crypto community, as it could set legal precedents for the industry.

The outcome of this trial will not only determine Bankman-Fried’s fate but also shed light on the legal boundaries and accountability within the cryptocurrency industry, making it a significant legal affair with potential implications for the crypto community.