The legal representative for former FTX CEO Sam “SBF” Bankman-Fried has submitted a memorandum to the United States District Court in Manhattan, requesting a prison sentence of five and a quarter to six and a half years. SBF was convicted of multiple charges of fraud and money laundering by a jury in November of last year, and he faces a maximum sentence of 110 years.
SBF has been indicted on two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy, and one count of money laundering conspiracy. The federal judge overseeing the case, Lewis A. Kaplan, is scheduled to announce the sentencing on March 28.
Although federal prosecutors are expected to present their recommendations on March 15, the Pre-sentence Investigation Report (PSR) has suggested a 100-year sentence for the former FTX CEO. However, lawyers for FTX argue that this proposed sentence is excessive, considering that SBF has no prior criminal record and was involved in the misconduct with at least four other individuals. They also emphasize that the victims are expected to be fully compensated.
The filing by FTX’s legal counsel highlights that there has been no harm to customers, lenders, or investors, as the FTX bankruptcy estate will fully repay them. Additionally, letters from friends and family supporting a lenient sentence have been submitted.
SBF has been held at the Metropolitan Detention Center in Brooklyn since last summer. Numerous stories have emerged about his time in jail, including trading mackerel for a haircut and being extorted for protection. The latest revelation is that SBF has been providing trading and investment advice to fellow inmates and recommending investment in Solana’s SOL token, a cryptocurrency with which he has a history.
FTX was one of the largest cryptocurrency exchanges, valued at $32 billion in January 2022, before its collapse in November of the same year. SBF was found guilty of mismanaging $8 billion in customer funds and committing various acts of fraud.
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