FTX co-founder Sam Bankman-Fried should serve no more than 6 1/2 years in prison for orchestrating the fraud that brought down the cryptocurrency exchange, according to his lawyers. The federal judge, who could issue a sentence of as long as 20 years for the most serious charges, received a recommendation from Bankman-Fried’s attorneys in a 98-page memo submitted late Tuesday ahead of his March 28 sentencing. The filing includes letters from Bankman-Fried’s supporters, attesting to his charity work.
The memo states that, considering “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.”
Bankman-Fried’s lawyers cited advisory guidelines, recommending a prison term in the range of 63 to 78 months as a “just sentence.” They also suggested that he should not be required to pay restitution or forfeit any assets, as the identified accounts for possible forfeiture were not for Bankman-Fried’s personal benefit.
FTX Bankruptcy
Further recommendations included in the memo are that customers and creditors will receive a return of their funds through FTX’s bankruptcy. Bankman-Fried was convicted in November on charges including wire fraud and conspiracy following a two-month trial. Kaplan’s decision on sentencing is expected to set a precedent for other cryptocurrency executives who mismanage funds.
Prosecutors have until March 15 to respond to the memo. US probation officials recommended a 100-year sentence, which Bankman-Fried’s lawyers called “grotesque” and “barbaric,” arguing that it is based on a flawed assumption of a $10 billion loss.
Last month, Bankman-Fried hired Marc Mukasey, a former federal prosecutor and experienced white-collar defense attorney, to represent him. The memo also includes letters from psychiatrists, including an autism expert, which were included to address Bankman-Fried’s struggles during the trial.
Autism Expert
Family letters alluded to mental health issues, with his father urging Kaplan not to impose a “draconian sentence” that could endanger Bankman-Fried in prison. The memo also compared his case with that of Michael Milken, highlighting the potential for redemption and contribution to society after serving a sentence.
Ultimately, it will be up to Judge Kaplan to determine the final punishment based on federal sentencing guidelines.
Rocky Relationship
Bankman-Fried’s rocky relationship with Judge Kaplan, along with various courtroom setbacks, has added to the complexity of his case. Despite these challenges, there is hope that his potential contributions to society will be considered in determining his sentence.
Judge Kaplan will evaluate the seriousness of the offenses, Bankman-Fried’s criminal history, and the losses incurred in determining the final sentence. The judge has previously emphasized caution when applying sentencing guidelines, particularly regarding the role of loss in determining punishment.
Final Remarks
Despite the challenges, there is hope for a fair and just outcome for Bankman-Fried as his case nears its conclusion.