Former SEC Lawyer Explains Three Reasons Sam Bankman-Fried Will be Convicted
Bankman-Fried’s Trial
With just a few hours left before the trial of the FTX co-founder Sam Bankman-Fried begins, John Stark, the former Securities and Exchange Commission’s attorney, has explained reasons he believes Bankman-Fried will be convicted.
The disgraced crypto mogul is accused of fueling the downfall of his crypto exchange. Early this year, the United States prosecutors brought several charges against him, including money laundering and wire fraud. If Bankman-Fried is found guilty on all counts, he will stare at over 90 years in prison.
Meanwhile, Stark says that even though the former CEO has a chance to defend himself in court, his chances of being acquitted are minimal. He claims that prosecutors have never had access to unlimited evidence and witnesses in a financial fraud prosecution as they do now.
Reason 1: Bankman-Fried’s Allies
In a long thread on X, Stark pointed to the powerful list of witnesses, with some being close allies of the FTX co-founder. Bankman-Fried’s partners who have agreed to testify against him include Nisha Singh, ex-engineer director at FTX; Ryan Salame, FTX’s former Digital Markets director; Caroline Ellison, Alameda Research former CEO; and Gary Wang, the co-founder of FTX.
According to reports, Ellison, who was Bankman-Fried’s girlfriend, confessed not being unequipped to manage Alameda Research in her diary, which the FTX former CEO leaked to the media. After prosecutors found out that Bankman-Fried was behind the diary leakage, they moved to court to have his bail canceled due to witness tampering.
Reason 2: John Ray III’s Findings
Stark says the handling of FTX bankruptcy by the current CEO, John Ray III, also weighs against Bankman-Fried. Earlier this year, Ray appeared before Congress, where he claimed that the crypto exchange failed as a result of poor management. He revealed there was no financial information maintained by the former executives.
Stark thinks the current FTX CEO’s findings are enough to convict Bankman-Fried of financial fraud.
Reason 3: Bankman-Fried Post-FTX Interviews
Lastly, the former SEC attorney says Bankman-Fried may have incriminated himself when he ran public relations campaigns after FTX collapsed. At the time, the former CEO engaged in several interviews with various media outlets and even hosted Twitter Spaces to clear his name. Stark explains that prosecutors may identify inconsistencies in his statements during those interviews and use them against him.
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