FTX Victims Speak Out Ahead of Sam Bankman-Fried’s Sentencing
Ahead of Sam “SBF” Bankman-Fried’s upcoming sentencing hearing, victims of the defunct cryptocurrency exchange FTX have come forward to share the emotional and financial devastation caused by the actions of the former CEO and the subsequent collapse of the firm.
In recent filings on March 18 in the United States District Court for the Southern District of New York, prosecutors released several victim impact statements concerning Bankman-Fried, as well as former FTX and Alameda executives Gary Wang, Caroline Ellison, Nishad Singh, and Ryan Salame. To protect the privacy of the victims, personal information was redacted from many of the statements, with the exception of a representative for BlockFi users.
One unidentified victim expressed their disappointment, stating, “[W]e trusted FTX with our hard-earned savings, believing in the platform’s integrity and its facilitation of digital assets. However, the sudden downfall of FTX has not only resulted in a significant financial loss of over $19,000 at current prices, but it has also shattered our trust in the digital asset space.”
Other victims shared their accounts, highlighting the “emotional toll” they experienced due to the collapse of FTX. They described feelings of uncertainty about their future and the negative impacts on personal relationships. Many called for SBF to be held accountable for his role in the events leading up to the exchange’s downfall.
Mohsin Meghji, the plan administrator of the BlockFi Wind-Down Debtors, expressed the harm caused by Bankman-Fried’s actions, stating, “Bankman-Fried’s criminal behavior has caused irreparable damage to hundreds of thousands of BlockFi customers. His attempts to deny any harm are insulting and should be dismissed.”
In November 2023, Bankman-Fried was convicted of seven felony counts by a jury. During the trial, the former FTX CEO took the stand in his own defense, primarily shifting blame for the exchange’s collapse onto others.
Bankman-Fried is scheduled to be sentenced on March 28. Prosecutors have recommended a prison sentence of 40 to 50 years, while SBF’s defense team has suggested 6.5 years. Experts believe that Judge Lewis Kaplan is unlikely to impose the maximum penalty but may consider the victim impact statements during sentencing.
Bankman-Fried last appeared in court in February, where he waived conflicts of interest for his attorneys, who also represented former Celsius CEO Alex Mashinsky. However, his legal team withdrew from the case in March.
As the sentencing date approaches, many are left questioning the trustworthiness of crypto exchanges in the aftermath of the FTX collapse.