Prosecutors are hoping to put the FTX cryptocurrency exchange scammer away for decades
Prosecutors in the fraud case against Sam Bankman-Fried are seeking a 40 to 50-year sentence for the former CEO of the bankrupt FTX cryptocurrency exchange. He faces up to 110 years for his role in the company’s illegal activities.
The prosecution’s 116-page government sentencing memorandum, presented to Judge Lewis Kaplan on March 15, details Bankman-Fried’s activities, concentrating on five facts: Bankman-Fried’s plot to make illegal political donations, his attempt at bribing Chinese government officials, his banking misdeeds, his attempts to blame others and several attempts at obstruction of justice.
Bankman-Fried was not charged with bribing Chinese officials or illegal political contributions because he wasn’t extradited by the government of the Bahamas on that charge. The memorandum also noted, “The defendant has failed to take genuine responsibility for his role in the collapse of FTX and the loss of customer funds.”
The document continued, stating that Bankman-Fried’s sentence could be enhanced due to the severity of his offenses. Bankman-Fried was also repeatedly compared to Bernie Madoff, the New York swindler who operated the largest Ponzi scheme in history, and other financial wrongdoers. It also contained four pages of statements by victims of Bankman-Fried’s fraud about the damage caused by the FTX collapse.
On November 2, 2023, Bankman-Fried was convicted of two counts of wire fraud, two counts of wire fraud conspiracy, one count of commodities fraud conspiracy, one count of securities fraud, and one count of conspiracy to launder money. His lawyers are asking for a maximum sentence of six and a half years. Prosecutors are also asking for an $11 billion judgment against him.
Judge Kaplan is not required to follow the government memorandum’s recommendations. Sentencing is scheduled for March 28.
