Prosecutors Seek 40-50 Year Sentence for FTX's Ex-CEO, Sam Bankman-Fried, over Fraud Conviction
Summary:
Former FTX CEO, Sam Bankman-Fried, found guilty of fraud, faces a possible prison term of 40-50 years, as suggested by prosecutors. The charges against him include illegal political contributions, bribery, banking misconduct, and obstruction of justice. His defense requests a modest 6.5 years of jail time. A final call on the sentence will be made on March 28. The prosecution also calls for an $11 billion judgment against Bankman-Fried.
The former FTX cryptocurrency exchange CEO, Sam Bankman-Fried, who was convicted of fraud, could face a prison term of 40-50 years as suggested by the prosecutors. The quantum of sentencing could reach up to 110 years according to the law. A comprehensive sentencing memorandum spanning 116 pages was presented to Judge Lewis Kaplan on March 15, offering an in-depth account of Bankman-Fried’s illicit activities. Five main areas were underscored: illegal political donations, attempts to bribe officials of the Chinese government, banking malpractices, blameshifting, and several counts of justice obstruction.
However, charges related to illegal political contributions were never filed against Bankman-Fried as the Bahamian government did not extradite him on these grounds. Furthermore, no charges were pressed against him pertaining to bribes to Chinese officials. The memorandum stressed Bankman-Fried’s failure to accept his role in causing FTX's downfall and the subsequent loss of customer funds. It highlighted the necessity for sentence intensification considering the gravity of his offenses. Justifications were backed by comparisons made to Bernie Madoff, the perpetrator of the largest known Ponzi scheme, and other financial criminals.
To further the case, accounts of Bankman-Fried's fraud victims formed a critical part of the memorandum, detailing the chaos triggered by the losses incurred from FTX's collapse. Despite being indicted on November 2 on seven charges, including wire fraud, securities fraud, commodities fraud conspiracy, and money laundering conspiracy, Bankman-Fried pleaded not guilty. His defense team requested a maximum of six-and-a-half-year jail term. As per the prosecution, a 40-50 year sentence would allow Bankman-Fried’s release only once society can be assured of no forthcoming fraudulent activities from him, while also underlining the serious nature of his offenses. They further seek a judgment of $11 billion against him.
However, the memorandum's recommendations are not binding on Judge Kaplan of the District Court of Southern New York. The sentencing is scheduled for March 28. Industry insiders have noticed an increase in substance abuse among crypto traders, reflecting the high pressure and potential downsides of the emerging field.
Published At
3/16/2024 1:53:17 AM
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