Ex-FTX CEO's Legal Team Pushes for Reduced Sentence Amid Fraud and Money Laundering Case
Summary:
Ex-FTX CEO, Sam Bankman-Fried, may face a five and a quarter to six and a half year prison term, proposed by his legal team, following his conviction for fraud and money laundering. He was found guilty on several counts last November, potentially leading to a 110-year sentence. His legal team argues that the suggested 100-year sentence by the Pre-sentence Investigation Report is "barbaric", emphasizing that he is a first-time offender with numerous letters of support submitted on his behalf. They also highlighted that no harm was done to investors, as all are expected to be fully reimbursed. Bankman-Fried is currently detained at the Metropolitan Detention Center in Brooklyn.
The attorney representing ex-FTX boss Sam Bankman-Fried submitted paperwork to the U.S. District Court in Manhattan, pushing for a prison term between five and a quarter and six and a half years. This comes after a jury convicted Bankman-Fried of various fraud and money laundering charges last November, which could result in a maximum 110-year sentence. Bankman-Fried was charged with two instances of wire fraud, two instances of wire fraud conspiracy, one instance of securities fraud, one instance of commodities fraud conspiracy and one instance of money laundering conspiracy. The appointed federal judge presiding over Bankman-Fried's case, Lewis A. Kaplan, is set to pronounce the sentence on March 28.
While the federal prosecutors' sentencing suggestions are due on March 15th, the Pre-sentence Investigation Report (PSR) has advised a 100-year punishment for the ex-FTX boss. The FTX lawyers labelled the PSR's 100-year sentence suggestion as "barbaric", arguing that Bankman-Fried is a first-time offender with no historical criminal convictions and was among at least four other individuals implicated in this case where victims are expected to recover their losses fully.
Bankman-Fried's defence team also highlighted that no harm was bestowed upon clients, lenders, or investors, as FTX's insolvency estate is projected to reimburse its clients in full. In their plea for leniency, the defence quoted several letters penned by family members and friends endorsing a softer sentence. After being detained since last summer, Bankman-Fried is currently being held at the Metropolitan Detention Center in Brooklyn. Multiple anecdotes from his time in prison have recently emerged, from trading fish for a haircut to being coerced for protection. On top of that, another prison story reports that Bankman-Fried is dispensing trading and investment counsel while urging prison guards to invest in Solana, a crypto token he has a longstanding connection with.
Before its crash in November 2021, FTX was one of the largest crypto exchanges with a valuation of $32 billion in January 2022. SBF, the former CEO, was condemned for mismanaging customer funds adding up to $8 billion and other instances of fraud.
Published At
2/28/2024 11:14:23 AM
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