The upcoming criminal trial of the former head of the cryptocurrency derivatives exchange FTX, Sam Bankman-Fried, will be starting on Tuesday, December 1st, 2020.
Bankman-Fried, 40, is being accused of money laundering, fraud, and embezzlement by the U.S. government. The alleged transactions were conducted between December 2018 and May 2020, and involve at least $32 million in cryptocurrency. Bankman-Fried is currently out on bail with a $10 million bond at the time of writing.
The prosecution claims that Bankman-Fried attempted to evade taxes by hiding the illegal activities of a friend, who had allegedly defrauded victims of over $500,000. The investigation has been on-going for two years and has included U.S. Secret Service, FBI, and IRS agents.
Bankman-Fried’s defense attorneys planned to utilize the 5th amendment in the case. Under the 5th amendment, no person is required to be a witness against themselves in a criminal case. The defense team has also argued that the government’s case is based on circumstantial evidence and hearsay.
No matter the outcome of the case, this trial can be considered a landmark moment for cryptocurrency in the United States as it is one of the first cases where an individual is being held accountable under existing anti-money laundering laws in the crypto space.
The case has now become the center of attention as the cryptocurrency community is anxious to see how the trial plays out and what its implications would be for the future of cryptocurrency. Bankman-Fried himself has remained silent throughout the process and his defense team has declined to provide any additional comment.
It is yet to be seen how this legal battle will turn out, however, the implications could be far-reaching for both the cryptocurrency industry and the U.S. government. The outcome of the trial could potentially set a precedent for the prosecution of similar cryptocurrency crimes in the United States, giving fraud victims the opportunity to get justice and seeing dishonest actors getting the punishment they deserve.