SBF faces multiple serious criminal charges in a single day, with a maximum sentence of a hundred years. Former prosecutor: Definitely has obtained multiple pieces of evidence of crimes.
Earlier on 12/13, Bahamian authorities arrested SBF at the request of the US Department of Justice. Subsequently, the SEC and CFTC filed charges separately. In addition to facing multiple charges, a former federal prosecutor pointed out that swift prosecution indicates that federal investigators have gathered a significant amount of evidence.
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Rapid Prosecution!?
Although more than a month has passed since the incident, former federal prosecutor Gene Rossi stated in a Bloomberg report that the speed of this prosecution has broken expectations of months or years.
He mentioned that compared to the Enron case where CEO Jeffrey Skilling was not indicted until over two years after the company's bankruptcy, it indicates that federal authorities have gathered a substantial amount of evidence through many grand jury subpoenas and testimonies.
They did not need to prosecute someone as prominent as SBF at such an early stage, showing that they have incredibly strong evidence.
Former federal prosecutor Marc Litt cited the example of Bernard Madoff, the mastermind of the largest Ponzi scheme in history, who was indicted just days after being reported to the SEC by his son. He believes that both cases faced similar pressures, prompting swift action from law enforcement.
Note: Madoff was sentenced to 150 years, but passed away in prison after serving only ten years.
Eight Criminal Charges Could Lead to a Century of Imprisonment
According to the announcement from the U.S. Department of Justice, the charges against SBF include the following, excluding filings from the SEC and CFTC:
- Money laundering
Wire fraud
Commodity fraud
Securities fraud
- Conspiracy to commit wire fraud
Violations of campaign finance regulations
- Conspiracy to defraud the Federal Election Commission
Bloomberg reported that based on the statutory maximum sentences, SBF could face up to 115 years in prison, but the actual sentence is yet to be determined by the judge.
U.S. Attorney Damian Williams, SEC Enforcement Director Gurbir Grewal attended the press conference held by the Department of Justice.
While regulators are taking action, it seems too late to protect users who have already suffered losses. During the hearing held on the evening of 12/13, the new CEO of FTX also stated that users are unlikely to receive full compensation.
Unable to Compensate All User Losses
Due to SBF's arrest and absence at the hearing, FTX's new CEO and restructuring lawyer John J. Ray III became the sole witness.
John Ray stated that the number of users and trading volume of FTX US are far lower than FTX, and it is expected that any additional crypto assets found in the future will likely belong to FTX US.
This is the first time he has indicated that FTX US's ability to compensate is higher than FTX, aligning with SBF's statement.
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