Former FTX CEO Sam Bankman-Fried, known as “SBF,” is awaiting sentencing following his conviction on multiple counts of fraud and money laundering. In a memo filed by his legal counsel in the United States District Court for the Southern District of New York, it was requested that the judge issue a prison sentence ranging from five and a quarter to six and a half years. SBF faces a maximum sentence of 110 years after being found guilty by a jury in November 2023.
The charges against SBF include 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. Judge Lewis Kaplan, presiding over the case, is scheduled to announce the sentencing on March 28.
While federal prosecutors are expected to provide their sentencing recommendations on March 15, the Pre-sentence Investigation Report (PSR) has suggested a 100-year sentence for SBF. However, SBF’s legal team argues that such a lengthy sentence is unjust, highlighting that he is a first-time offender with no prior criminal record. They emphasize that SBF was involved in the conduct with at least four other individuals and that victims are expected to recover fully, as the FTX bankruptcy estate is poised to repay customers in full.
The memo also emphasizes the absence of harm to customers, lenders, and investors, citing the expected full repayment to customers from the FTX bankruptcy estate. Additionally, numerous letters from friends and family have been submitted in support of a lenient sentence for SBF.
Currently held at the Metropolitan Detention Center in Brooklyn, New York, since summer 2023, SBF’s time in prison has been marked by various incidents, including trading advice and investment recommendations to prison guards. Notably, he has reportedly advocated for investments in Solana’s SOL cryptocurrency, with which he has a significant history.
The downfall of FTX, once valued at $32 billion in January 2022, was a significant event in the cryptocurrency industry. SBF was found guilty of mismanagement of $8 billion in customer funds and multiple counts of fraud, leading to the collapse of the exchange in November of the same year.
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