Prosecutors are seeking a prison term of 40-50 years 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.
In a comprehensive 116-page sentencing memorandum submitted to Judge Lewis Kaplan on March 15, the government outlines Bankman-Fried’s activities in detail, focusing on five key points: his involvement in an illegal scheme to make political contributions, his attempt to bribe Chinese government officials, his banking misconduct, his efforts to shift blame, and his various obstructions of justice.
It’s important to note that Bankman-Fried was not charged with illegal political contributions due to the Bahamas government’s refusal to extradite him on that charge. Similarly, he was not charged with bribing Chinese officials.
The sentencing memorandum argues for several enhancements to Bankman-Fried’s sentence given the gravity of his crimes. It repeatedly draws comparisons between him and Bernie Madoff, the notorious New York financier who orchestrated the largest Ponzi scheme in history, as well as other financial criminals. The document also includes four pages of testimonies from Bankman-Fried’s fraud victims, highlighting the turmoil caused by the collapse of FTX and the losses they suffered.
On November 2, 2023, Bankman-Fried was found guilty of seven charges, including wire fraud, securities fraud, and money laundering conspiracy. His legal counsel has 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 after society can be confident that he will not return to fraudulent activities. At the same time, it would reflect the seriousness of his crimes. Additionally, the prosecutors are seeking an $11 billion judgment against him.
Judge Kaplan is not obligated to follow the government’s recommendations in the memorandum. The sentencing hearing is scheduled for March 28.
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The article also touches on the growing issue of substance abuse among cryptocurrency traders, suggesting a correlation between crypto trading and substance abuse.