Sam Bankman-Fried’s attorneys informed a U.S. judge on Tuesday that the FTX founder’s conviction for stealing $8 billion from users of the defunct cryptocurrency exchange would be worthy of a sentence of 63 to 78 months.
The plea was submitted to U.S. District Judge Lewis Kaplan, who is scheduled to sentence Bankman-Fried in Manhattan federal court on March 28, by the attorneys for the imprisoned former billionaire, who turns 32 next week. A jury found Bankman-convicted Fried guilty in November of seven counts of fraud and conspiracy; he now faces a maximum sentence of 110 years in jail.
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The proposal is made in the context of encouraging developments regarding the insolvency of the problematic exchange he previously oversaw. The attorneys for SBF claim that the recovery of the cryptocurrency markets and the strong returns on certain of the estate’s investments may make it possible to fully compensate clients who lost out on the company’s failure. Given the importance of taking the victims’ impact into account, this factor could have a big impact on the sentence. The attorney for SBF also wrote,
“When the factors are considered, including Sam’s charitable works and demonstrated commitment to others, a sentence that returns Sam promptly to a productive role in society would be sufficient, but not greater than necessary, to comply with the purposes of sentencing.”
In a comprehensive 98-page document submitted to US District Judge Lewis A. Kaplan ahead of the March 28 hearing, SBF’s legal team outlines arguments advocating for a merciful sentence. They emphasize SBF’s philanthropic efforts and dedication to others, proposing that a sentence facilitating his swift reintegration into society would serve the justice system’s goals. The defense also opposes ordering SBF to forfeit assets, asserting that none of the identified accounts intended for forfeiture directly benefited him. Moreover, they stress the forthcoming restitution of funds to clients and creditors via FTX’s bankruptcy proceedings, further diminishing the need for additional punitive measures.
For three days, Bankman-Fried gave testimony. He admitted to mistakes, such as failing to establish a risk-management team, but he denied stealing anything and claimed to have been unaware of Alameda’s debt to FTX until just before both companies folded. Three former FTX technology head Gary Wang, former Alameda chief executive Caroline Ellison, and former engineering chief Nishad Singh, who testified against him, all entered guilty pleas as part of agreements with prosecutors. They haven’t received a sentence yet.
In spite of a potential conflict of interest, Bankman-Fried expressed his desire to continue working with the new attorneys he hired to represent him during his sentence when he appeared in court last week for the first time since his conviction.
By March 15, the Manhattan U.S. Attorney’s office is anticipated to release its own recommendation for punishment. It is anticipated that Bankman-Fried would challenge his verdict and punishment.