Federal prosecutors in New York have made a significant sentencing recommendation for Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX. They are seeking a prison term of 40 to 50 years for his involvement in what they describe as a monumental instance of fraud in the cryptocurrency sector.
This recommendation comes as part of the pre-sentencing process, where they submitted their proposals to the judge responsible for determining Bankman-Fried's fate. Bankman-Fried, once a highly influential figure in the crypto world, gained fame for his marketing skills and the ability to attract high-profile endorsements for his business ventures.
Sam Bankman-Fried, who is 32 years old, is due to receive his sentence on March 28 in a federal court in Manhattan. This sentencing follows his conviction in November on charges of fraud and conspiracy.
The saga of Bankman-Fried's legal troubles includes his extradition from the Bahamas to the United States in December 2022. This extradition occurred after the collapse of his companies a month prior.
Initially, he was permitted to stay under house arrest with his parents in Palo Alto, California. However, his pre-trial freedom was cut short when Judge Lewis A. Kaplan ordered his imprisonment, citing evidence that Bankman-Fried had attempted to influence witnesses related to his trial as we read in Reuters.
In their detailed submission regarding sentencing, the prosecutors painted a picture of Bankman-Fried's crimes as among the most significant financial frauds in modern history. They emphasized the broad scope of his criminal activities, which affected thousands of individuals and companies across various continents over an extended period.
The prosecutors highlighted several key aspects of his fraudulent activities: misappropriation of customer funds, deception of investors, the creation of false documents for lending purposes, substantial illegal political contributions, and the bribery of foreign officials.
They underlined the unprecedented scale of his unlawful political donations, which totaled over $100 million, and a substantial bribe of $150 million to Chinese government officials, marking it as one of the largest individual bribes on record.
Despite the bankruptcy of FTX and his subsequent arrest, the prosecutors accused Bankman-Fried of consistently avoiding accountability. They cited instances where he shifted blame to market dynamics and other individuals, engaged in witness tampering, and repeatedly lied under oath during his trial proceedings.
On the other hand, Bankman-Fried's defense team has sharply criticized the suggestion from a probation office that he should face a century in prison. They termed such a lengthy sentence as excessively harsh and inhumane. Advocating for a much more lenient sentence, they urged the judge to consider a prison term of just a few years.
They argued that Bankman-Fried, being a first-time, non-violent offender, should not be treated as harshly as portrayed in media and during the trial. The defense also noted the potential for full financial recovery for the victims of the fraud, arguing that this factor should significantly mitigate the severity of his punishment.
15.03.2024
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