• According to the court’s verdict, the former crypto king was guilty of looting over $8 billion of the exchange’s user funds.

•  Federal prosecutors have dropped a campaign finance charge against Sam Bankman Fried.

• The US Attorney’s Office in Manhattan previously dropped another charge against him for violating anti-bribery statutes on the same grounds.

The 2023 crypto has finally drawn its curtains, leaving the entire web3 community torn between the struggles of battling the intense crypto winter, the bombardment of crypto lawsuits, and the high adoption rate of decentralized applications. 2024 holds much hope, with many anticipating the much-awaited crypto bull run. 

Unfortunately, the new year has taken an abrupt turn. Sam’s bankman friend, former crypto king, and perpetrator of the largest crypto crash has received unexpected news. Federal prosecutors said the Manhattan judge dropped several extra charges against Sam Bankman.

 This unexpected turn shocked the entire Web3 industry after the FTX fiasco shook crypto to its core. Will this turn of events be a positive tragedy for the crypto industry, or is there an underlying ploy hidden from the public’s eye?

Sam Bankman’s Case Overview

The FTX saga has plagued the industry for the past year. As a titan within the crypto sector, FTX extensively influenced the industry. Unfortunately, an unexpected twist and inside source revealed that the success behind FTX was merely a charade. The organization had significantly misused its customer funds to finance several poorly financial investments in an attempt to save its sister corporation, Alameda.

 The truth caused a chain reaction, leading to the fastest liquidity crisis witnessed in the crypto industry. Unfortunately, the damage was done, and many organizations and traders affiliated with FTX suffered immensely.

FTX became the light that ignited one of the worst crypt rashes, causing Bitcoins to plummet to an all-time low of $15,000 and below. Sam Bankman tried to salvage the situation, but its effects lasted until 2023. 

The FTX fiasco proved that regulatory and governmental bodies were required to launch a full-on manhunt on the industry. Many might not like the idea, but in reality, FTX’s failure caused many crypto-based organizations to suffer under the long arm of regulatory bodies.

Also, Read FTX Bankruptcy Filings Expose $53,000 Per Hour Drain on Legal Advisors.

The entire crypto community demanded justice, and on November 2023, Sam Bankman was found guilty of resulting in one of the most significant crypto fraud cases witnessed. According to the court’s verdict, the former crypto king was guilty of looting over $8 billion of the exchange’s user funds. The court initially estimated the proceeding to take two months, but the mounting evidence and the distraught crypto ecosystem quickened the jury’s decisions.

 In addition, other regions have satisfied their regulatory bodies, further constricting cryptocurrency’s growth. The US SEC has also found ways to take down the top exchanges in the ecosystem, further darkening the crypto industry’s image.

As the FTX fiasco drew to a close, many expected the industry to finally move on from one of its darkest chapters—or so we thought.

Prosecutors dropped several changes against Sam Bankman Fried.

In an unexpected turn of events, federal prosecutors dropped a campaign finance charge against Sam Bankman Fried. According to the letter filed on Friday, 27 December, in the federal court of Manhattan, the prosecutors highlighted that the “strong public interest” in a prompt resolution of their case against the former billionaire outweighs the benefits of a second trial.

They added, “The interest weighs particularly heavily here, given that Bankman-Fried’s scheduled sentencing on 28 March 2024 is likely to include orders of forfeiture and restitution for victims of his crimes.”

Despite having numerous charges against him, Sam Bankman Fried has managed to escape a few. According to the legal notice, the US Attorney’s Office in Manhattan previously dropped another charge against him for violating anti-bribery statutes on the same grounds.

Also, read that former FTX CEO Sam Bankman-Fried denies defrauding users.

With the recent notice, the criminal exposure of the former crypto king narrows his criminal exposure. According to the procedures, if convicted, the new changes would have added two to five years of his improvement.

The letter stated, “The Government has been informed that The Bahamas notified the United States earlier today that The Bahamas did not intend to extradite the defendant on the campaign contributions count. Accordingly, in keeping with its treaty obligations to The Bahamas, the Government does not intend to proceed to trial on the campaign contributions count.”

Despite this positive turn of vents, the verdict of the FTX fiasco remains unchanged. The damage the FTX fiasco caused was significant, and in addition, his top executives, Caroline Ellison, Gary Wang, and Nishad Singh, all pleaded guilty. It may appear as a ray of hope. Still, a second trial would hold no actual benefit to the community other than adding more sentences to a convicted criminal. 

The entire debate behind Sam Bankman is shrouded with mixed opinions. Some claim that his sentence was just, while others claim it to be excessive. Despite diverse speculations, the verdict was passed, and no amount of positive outlook will change that.