Bankman-Fried Verdict Is Proposed Up To 50 Years In Prison

Key Points:

• Prosecutors seek 40–50 years for the FTX founder’s fraud conviction involving $10 billion in losses.
• The defense disputes the potential 100-year term, highlighting a lack of remorse.
• The Bankman-Fried verdict’s impact on cryptocurrency fraud deterrence and victim compensation was emphasized.

Prosecutors are advocating for a substantial prison term, ranging from 40 to 50 years, for Sam Bankman-Fried, the founder of the FTX crypto exchange, following his conviction on seven charges, including wire fraud and conspiracy.

Prosecutors Push for Decades Behind Bars for FTX Bankman-Fried Verdict

The collapse of FTX, which prosecutors deemed “likely the largest fraud of the last decade,” affected over 1 million victims, with losses surpassing $10 billion.

Bankman-Fried‘s actions, prosecutors argue, exhibited a blatant disregard for the law, with transfers of customer funds into risky investments, political contributions, and extravagant real estate ventures. Despite a valuation of $32 billion before its demise, both FTX and its affiliate Alameda Research ended up bankrupt in 2022.

The Bankman-Fried verdict, scheduled for March 28 before US District Judge Lewis A. Kaplan, poses significant implications for the cryptocurrency industry. Prosecutors emphasized the need for a severe penalty to deter other executives from similar misconduct.

According to Bloomberg, Bankman-Fried’s spokesperson, Mark Botnick, stated that his legal team will file a response to the government’s memo. Defense lawyers have previously argued against the potential Bankman-Fried verdict for a 100-year sentence, labeling it “grotesque” and “barbaric.”

Cryptocurrency Sector Watches as Sentencing Nears for FTX Collapse

The government’s efforts to recover funds include seizing assets from US bank accounts, Binance, and Binance.US accounts, as well as proceeds from the sale of Robinhood shares. Furthermore, they highlighted the impact on victims, including a single mother who lost her life savings and a family forced to leave Ukraine during the war.

Despite the plea for leniency from his defense, prosecutors contend that Bankman-Fried has not taken responsibility for his actions, which they believe warrants a significant sentence. The judge’s decision could set a precedent for addressing similar cases of fraud and mismanagement in the cryptocurrency sector.