First, Bankman-Fried has to choose whether to appeal his convictions for crimes. It’s not required, but he’s anticipated to file an appeal.
He also needs to move fast. Bankman-Fried was found guilty on November 2 and given two weeks to file an appeal. Post-trial motions must be filed by November 20.
In the event that Bankman-Fried’s trial is retried, the appellate court’s power to accept or deny his motion is limited, and the court’s decision is based solely on the trial court’s case file.
Errors made by the government are one of the grounds for an appeal.
Can he shorten his sentence?
March 28 of next year is when Bankman-Fried is scheduled to be sentenced. Judge Lewis Kaplan of the US Federal District Court, who oversaw Bankman-Fried’s case and repeatedly reprimanded him for not directly addressing questions during the stand, will determine how long he stays behind bars.
According to Martin Auerbach, a white collar criminal defense lawyer and former federal prosecutor, one consideration the judge may consider is whether a heavier sentence will discourage others from engaging in similar behavior.
According to Auerbach, Kaplan might believe that this is a message that needs to be conveyed to a generation as well as to this particular person.
The amount of money involved in Bankman-Fried’s deception is another consideration.
The federal sentencing recommendations recommend a base jail time plus “loss calculation” enhancements, which propose extending the term as victims’ losses mount. However, these guidelines are recommended rather than mandated. According to Auerbach, one important component of white-collar crimes is calculation.
“I think that the challenge is that the magnitude of the loss is sufficiently great,” Auerback said about the $10 to $14 billion that prosecutors argued Bankman-Fried stole from his FTX customers. “He probably tops out on the charts.”
The convictions of Bankman-Fried permit Judge Kaplan to impose a maximum sentence of 110 years.
Bankman-Fried, his attorneys, and government prosecutors will have a chance to offer proof, including witness testimony, in favor of a lighter or heavier sentence before it is handed down.
Bankman-Fried will have one more opportunity to speak in court, or give a “allocution”.
These will be crucial because a common consideration in sentencing is the defendant’s level of acceptance of guilt for his criminal acts.”The judge’s apparent method of conducting this trial was undoubtedly in line with his belief that Sam Bankman-Fried was a simpleton. This helps to make the defendant aware of the seriousness of his actions, according to Auerbach.
Will there be a second trial?
It might also be necessary for Bankman-Fried to begin getting ready for a retrial. This is due to the fact that he is still facing six outstanding criminal charges.
Conspiracy to conduct an unauthorized money transmission business, conspire to make illicit political contributions and deceive the Federal Election Commission, and conspire to break anti-bribery laws are among the charges.
Judge Kaplan agreed to remove those charges from the government’s case, giving the defense a victory ahead of trial.
Since the charges were not part of the government’s agreement to extradite Bankman-Fried from the Bahamas to the US, Bankman-Fried’s attorneys successfully argued that the government should not be permitted to proceed with the charges without the Bahamas government’s consent. December saw his arrest in the Bahamas.
Jury selection for the additional charges trial is set for March 28, but it is unclear if the government intends to amend or drop the charges.
Judge Kaplan questioned the government’s attorneys after the jury’s verdict was read in court to find out if they planned to press charges or if they needed more time to make up their minds. By February 1st, the government requested an update on the decision and additional time.
Will he face civil penalties?
Bankman-Fried may also be subject to fines and prohibitions from trading specific securities in the future.
Bankman-Fried was charged in December with separate fraud-related civil claims by the Securities and Exchange Commission and the CFTC. The claims included breaking the anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934, as well as engaging in fraudulent activities related to the sale of digital commodities.
The SEC is requesting that a judge issue an injunction barring Bankman-Fried from engaging in any future securities issuance, purchase, offer, or sale—apart from for his own personal account—disgorge him of any purportedly unjustified gains, and prevent him from serving as an officer or director of a company.
Judge Kaplan granted the Justice Department’s request to intervene in February, allowing the cases to be put on hold until Bankman-criminal Fried’s case was resolved. It was unclear from the order whether the case would stay pending the resolution of a second criminal case.
In its lawsuit, the CFTC is requesting disgorgement, restitution, civil monetary penalties, and injunctions that would permanently bar Bankman-Fried and his companies from engaging in business dealings and from registering with the commission.