Sam Bankman-Fried Faces Court: 'It's Not Crypto On Trial—It's Classic Fraud And Embezzlement'

Jury selection for the trial of Sam Bankman-Fried, the founder of bankrupt crypto exchange FTX (CRYPTO: FTT), began on Tuesday in the Southern District of New York.

According to a press release posted by the Justice Department, Bankman-Fried is being charged with "two counts of wire fraud conspiracy, two counts of wire fraud, and one count of conspiracy to commit money laundering, each of which carries a maximum sentence of 20 years. He was also charged with conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to defraud the United States and commit campaign finance violations, each of which carries a maximum sentence of five years."

The charges he faces in court relate to allegedly stealing customer funds and lying to investors and lenders.

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Speaking about the upcoming trial, Cody Carbone, VP of Policy at the Chamber of Digital Commerce, said, "We're eager to move past FTX's missteps and focus on the US' future in digital assets and blockchain. Remember, it's not crypto on trial—it's classic fraud and embezzlement."

Carbone works to lobby for pro-crypto policy changes and to encourage mainstream acceptance of crypto. He will be speaking at the Benzinga Future of Digital Assets event on Nov. 14 in NYC on a panel examining crypto regulations and their impact on businesses and investors.

The prosecution plans to present customers as witnesses to illustrate the impact of the alleged fraud committed against those who lost their funds. Bankman-Fried, who has pleaded not guilty, could receive a lengthy prison sentence if convicted after the month-long trial.

Last year's FTX collapse began when Coindesk published an article exploring its relationship with Alameda Research. That story led to a surge in customer withdrawals, which FTX could not fulfill. The second trial addressing allegations of financial fraud and bribing Chinese authorities is set for March 2024.

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