FTX Founder Needs to Face 40-50 Years: Prosecutors

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The former CEO of bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, is facing a potential sentence of 40–50 years in prison as prosecutors push for stringent punishment for his fraudulent activities. 

Bankman-Fried, who also co-founded the cryptocurrency exchange FTX, was found guilty on seven charges, including wire fraud, securities fraud, and money laundering conspiracy. 

As reported earlier, the disgraced entrepreneur’s defense team made a striking request to the US Court, asking for a sentence ranging between 63 and 78 months instead of the 100 years of imprisonment.

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Prosecutors Detail FTX Founder’s Illicit Actions

In a 116-page Government’s Sentencing Memorandum submitted to Judge Lewis Kaplan on March 15, prosecutors detailed the FTX founder’s illicit actions, which included illegal political contributions, attempted bribery of Chinese government officials, banking misconduct, efforts to deflect blame, and obstruction of justice. 

Despite not being charged for illegal political contributions and bribery due to extradition constraints, the memorandum highlighted Bankman-Fried’s failure to acknowledge his responsibility for the collapse of FTX and the resulting loss of customer funds.

Comparisons with Bernie Madoff

Comparisons were drawn between Bankman-Fried and infamous financial criminals like Bernie Madoff, with prosecutors seeking to portray the severity of his crimes. Victims of Bankman-Fried’s fraud also shared accounts of the turmoil caused by the collapse of FTX, emphasizing the devastating impact on their lives.

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As reported earlier by TheCoinRise, SBF’s lawyers stated that the case of the disgraced crypto entrepreneur was almost impossible to win owing to the defendant’s actions. Stanford Law School professor David Mills, who led the FTX founder’s legal team, described Bankman-Fried “as the worst person I’ve ever seen do a cross-examination.”

FTX Founder’s $11B Judgement

Bankman-Fried’s legal counsel, however, advocated for a maximum sentence of six and a half years, arguing against the severity of the proposed 40–50 year sentence. Nevertheless, prosecutors justified their recommendation, stating that it would ensure society’s safety from his potential return to fraudulent activities while reflecting the seriousness of his crimes.

Furthermore, prosecutors sought a $11 billion judgment against Bankman-Fried, underscoring the substantial financial ramifications of his actions. 

Sentencing is Scheduled for March 28

Judge Kaplan, presiding over the District Court of Southern New York, is not bound by the government’s recommendations and holds discretion in determining the final sentence.

The sentencing hearing is scheduled for March 28, where Judge Kaplan will weigh the arguments presented by both sides before delivering a verdict. 

It is also important to note that FTX has decided to prioritize repaying the creditors but is not considering restarting its operations after securing external funding and operational changes.

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