Lawyers representing Sam “SBF” Bankman-Fried, the former CEO of FTX, have criticized the proposed maximum sentence of 50 years in prison for their client, stating that it reflects a “medieval” approach to punishment and does not accurately represent the severity of his crimes.
Bankman-Fried’s lawyers, Marc Mukasey and Torrey Young, addressed their concerns in a letter to Judge Lewis Kaplan on March 19, in response to the government’s sentencing proposal, which was submitted on March 15.
In the sentencing memorandum, the United States prosecutors suggested a sentence of 40 to 50 years for Bankman-Fried, who was convicted of fraud and money laundering charges in November 2023.
The lawyers argued that the proposed sentence employed an outdated view of punishment that amounted to a recommendation for a life sentence in prison, which they believed was unjust. Instead, they proposed a reduced sentence of five to six years.
To support their request for a reduced sentence, the lawyers made several arguments. They claimed that no actual losses occurred because the bankruptcy proceedings would ensure that all customers and lenders were fully compensated, with assets remaining in the estate.
Furthermore, the lawyers disputed the government’s portrayal of Bankman-Fried as a greedy individual solely driven by personal wealth, highlighting his philanthropic efforts and supposedly modest lifestyle.
The lawyers also challenged the government’s assertion that Bankman-Fried posed a high risk of re-offending, citing research that showed low recidivism rates among white-collar, educated offenders without prior records.
Additionally, Bankman-Fried’s lawyers accused the prosecution of making unsupported claims, including allegations that he evaded responsibility and misrepresented sentencing data for similar fraud cases. They emphasized that they had not come across any non-violent federal defendant who had served a 40 to 50-year sentence and been released.
Mukasey and Young emphasized that Bankman-Fried had already suffered significant personal and professional losses and proposed a reduced sentence of approximately five to six and a half years.
In a separate development, a jury trial concluded that Bankman-Fried was guilty of all seven charges brought against him by the U.S. government, nearly a year after the collapse of FTX.
In light of these developments, concerns have been raised about the trustworthiness of crypto exchanges following the collapse of FTX.