Lawyers representing former FTX CEO Sam “SBF” Bankman-Fried have criticized the proposed maximum sentence of 50 years in prison for their client, stating that it reflects a “medieval” perspective on punishment and fails to accurately reflect the seriousness of his crimes.
In a letter sent to Judge Lewis Kaplan on March 19, Bankman-Fried’s legal team, Marc Mukasey and Torrey Young, responded to the government’s sentencing proposal, which was presented on March 15. The proposal suggested a sentence of 40 to 50 years for the former crypto billionaire, who was convicted of fraud and money laundering charges in November 2023.
The lawyers argued that the proposed sentence relied on an outdated concept of punishment and essentially recommended a life sentence. They stated that this approach does not align with the principles of justice and proposed a reduced sentence of five to six years in prison instead.
To support their argument for a reduced sentence, Bankman-Fried’s lawyers made several points. They emphasized that no actual losses occurred as a result of his actions, as the bankruptcy proceedings would ensure that all customers and lenders are fully compensated. They also disputed the portrayal of Bankman-Fried as driven by greed, highlighting his philanthropic efforts and modest lifestyle.
In addition, the lawyers challenged the government’s assertion that Bankman-Fried posed a high risk of reoffending. They cited research showing low rates of repeat offenses among white-collar, educated offenders without prior criminal records.
The lawyers further criticized the prosecution for making unsupported claims, including allegations that Bankman-Fried avoided responsibility and misrepresented sentencing data for similar fraud cases. They argued that no federal defendant convicted of a non-violent offense has ever served a 40-50 year sentence and been released.
Mukasey and Young asserted that Bankman-Fried has already suffered significant personal and professional losses and proposed a reduced sentence of approximately five to six and a half years.
Bankman-Fried was found guilty on all seven charges brought against him by the U.S. government after a jury trial, nearly a year following the collapse of FTX.
In light of these developments, concerns have been raised about the trustworthiness of crypto exchanges, particularly in the wake of the FTX collapse.