As the Jury Deliberates in SBF Trial, what happens next?
As the jury begins deliberations in the trial against Sam Bankman-Fried, questions remain over what impact the verdict will have on the crypto industry as a whole. Here’s what to expect going forward.
John Jay Ray III, an attorney with a track record for recovering funds from troubled companies, is overseeing its bankruptcy. Previously, Ray was responsible for returning over $820 to creditors of the now-defunct American energy company, Enron.
“Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” Ray wrote in a 2022 court filing.
“From compromised systems integrity and faulty regulatory oversight abroad to the concentration of control in the hands of a very small group of inexperienced, unsophisticated, and potentially compromised individuals, this situation is unprecedented,” Ray continued.
“Ray’s done an amazing job of clawing back money,” said Enneking. “Especially when you think they didn’t even have an accurate balance sheet.”
If the U.S. Bankruptcy Court approves an Amended Plan put forward last summer by FTX debtors, customers should receive “over 90% of distributable value worldwide.”
“It was an $8 billion hole, and he’s doing a masterful job of filling it,” Enneking said.
Former Alameda Research CEO Caroline Ellison, FTX chief technical officer Gary Wang, and head of engineering for FTX Nishad Singh all testified against their former boss under a cooperation agreement with the U.S. government in hopes of a reduced sentence.
“If it’s discovered that they lied (on the witness stand), they breached the contract,” Enneking said, noting that any potential leniency they could receive “goes out the window.”
“They could
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