Prosecutors are seeking a 40–50 year prison sentence for Sam Bankman-Fried, the former CEO of bankrupt cryptocurrency exchange FTX and a convicted fraudster. He could potentially face up to 110 years behind bars.
On March 15, a 116-page government sentencing memorandum was submitted to Judge Lewis Kaplan. It provides a detailed account of Bankman-Fried’s activities, focusing on five key points: his scheme to make illegal political contributions, his attempt to bribe Chinese government officials, his banking misconduct, his efforts to shift blame, and various acts of obstruction of justice.
It is worth noting that Bankman-Fried was not charged with illegal political contributions or bribery of Chinese officials because the Bahamian government did not extradite him on those charges. The memorandum also states that enhancements should be applied to Bankman-Fried’s sentence due to the severity of his crimes. It draws comparisons between him and Bernie Madoff, the infamous financier responsible for the largest Ponzi scheme in history, as well as other financial criminals. Additionally, the memorandum includes accounts from victims who suffered turmoil and financial losses as a result of FTX’s collapse.
Bankman-Fried was found guilty on November 2, 2023, of seven charges, including wire fraud, securities fraud, and money laundering conspiracy. His legal counsel requested a maximum sentence of six and a half years, and he had pleaded not guilty to all charges.
The prosecutors argue that a sentence of 40–50 years would allow Bankman-Fried to regain his freedom only when society can be confident that he will not engage in fraud and deceit again. They also seek an $11 billion judgment against him.
It is important to note that Judge Kaplan is not bound by the government’s recommendations in the memorandum. The sentencing is scheduled for March 28.
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