FTX on Trial Quiet. Please

Breaking News: FTX Founder Sam Bankman-Freed Sentenced to 25 Years in Prison for Massive Crypto Fraud
In a stunning conclusion to one of the biggest financial fraud cases in U.S. history, Sam Bankman-Freed, the once-celebrated founder of the now-defunct cryptocurrency exchange FTX, was sentenced to 25 years in prison on Thursday. U.S. District Judge Lewis Kaplan handed down the sentence in a Lower Manhattan federal courtroom, rejecting Bankman-Freed's claims that FTX customers did not suffer substantial losses and accusing him of obstruction of justice and witness tampering during his defense.
Bankman-Freed, 32, was convicted on seven criminal counts in November for his role in defrauding FTX users of $8 billion. In a statement before the court, the former billionaire wunderkind struck an apologetic tone, admitting to making a series of "selfish" decisions while leading FTX. "It haunts me every day," he said, wearing a beige jailhouse jumpsuit.
Prosecutors had sought a sentence of up to 50 years, while Bankman-Freed's legal team argued for no more than 6½ years. The defense cited mental health struggles and Bankman-Fried's alleged generosity in his personal life as reasons for leniency. However, Judge Kaplan found the defense's arguments misleading, logically flawed, and speculative.
The impact of Bankman-Freed's actions on FTX users was made clear in victim statements submitted to the court. One man, whose name was redacted, wrote, "My whole life has been destroyed. I have 2 young children, one born right before the collapse. I still remember the weeks following where I would stare blankly into their eyes, completely empty inside knowing their futures have been stolen through no fault of our own." Another victim described how the loss of funds had affected numerous life plans, including a wedding, and led to thoughts of suicide.
The sentencing marks the final chapter in the dramatic downfall of Sam Bankman-Fried, once hailed as a crypto prodigy. As he begins his 25-year prison sentence, the victims of his massive fraud are left to grapple with the devastating consequences of his actions.

Sam Bankman-Fried (SBF) has decided to move forward with Marc Mukasey as his defense counsel in his criminal case related to the collapse of his crypto exchange FTX. This is despite prosecutors raising concerns about a potential conflict of interest given Mukasey's previous representation of Celsius CEO Alex Mashinsky.
Mukasey, a former federal prosecutor in Manhattan, is currently representing Mashinsky on charges that he allegedly inflated the price of Celsius' crypto token and earned $42 million selling his personal tokens. Given that SBF's trading firm Alameda Research has past dealings with Celsius, prosecutors questioned whether Mukasey could fairly represent both men.
However, when appearing in court on Wednesday for the first time since being indicted, SBF told Judge Lewis Kaplan he was comfortable retaining Mukasey and his associate Torrey Young for his defense team. SBF stated he had consulted with his previous lawyers, Mark Cohen and Christian Everdell, about the possible conflict. Cohen and Everdell will now seek to withdraw from SBF’s case, clearing the way for Mukasey and Young to take over.
For his part, Mukasey argued to the court on Tuesday that his firm believes they can "fairly represent" both Bankman-Fried and Mashinsky in their respective cases. SBF remains detained at Brooklyn's Metropolitan Detention Center since his arrest in December 2022.
The high-profile case against SBF continues to develop. The 30-year old founder of the now-bankrupt FTX faces charges of fraud and money laundering that could see him imprisoned for the rest of his life. His willingness to overlook Mukasey's potential conflict of interest signals SBF's desperation to begin crafting a defense strategy alongside the experienced trial lawyer.

The fall of FTX

The current situation with FTX, the bankrupt cryptocurrency exchange, has several key developments. As of April 2023, FTX had recovered over $7.3 billion in cash and liquid crypto assets, marking an increase of more than $800 million since January. This recovery is a significant step in addressing the fallout from the company's collapse. The increase in the recovery amount is partly due to the recent rise in cryptocurrency prices. FTX's new CEO, John Ray, has been focusing on stabilizing the situation and is contemplating options for possibly restarting the crypto exchange, though this would require significant capital and a reevaluation of the company's operations.
Additionally, FTX has filed a reorganization plan to end its bankruptcy, with a proposal to distribute billions in cash to creditors and customers after most of FTX’s cryptocurrencies are liquidated. The company's plan involves dividing the assets into three pools for the benefit of FTX.com customers, U.S. customers, and a general pool of other assets. However, it's anticipated that customers of both exchanges will not be paid in full, and FTX.com will likely see a greater percentage of losses.
In terms of customer repayments, FTX debtors estimate that customers of FTX.com and FTX.US would collectively receive 90% of assets available for distribution. The "shortfall claim" is estimated to be approximately $8.9 billion for FTX.com and $166 million for FTX.US, and if approved by the bankruptcy court, these funds are expected to be disbursed by the end of the second quarter of 2024.
It's also important to note that part of the proposed plan includes a clause where customers who withdrew over $250,000 from the exchange within nine days of bankruptcy would have their claim reduced by 15% of the amount, while claims under $250,000 wouldn’t be subject to a reduction.
The broader context of FTX's collapse has had significant impacts on the cryptocurrency world, contributing to instability and uncertainty in the market​