Back to main

Prosecutors Seek 40–50 Years for FTX Founder Sam Bankman-Fried Amid Fraud Conviction, Comparing Him to Bernie Madoff

Prosecutors are advocating for a substantial prison sentence for Sam Bankman-Fried, the ex-CEO of the now-defunct cryptocurrency exchange FTX, after his conviction on fraud charges.

They propose a term of 40–50 years, in contrast to Bankman-Fried’s defense team requesting a maximum of six and a half years.

Bankman-Fried, who could face a maximum of 110 years, was found guilty on multiple charges, including wire fraud, securities fraud, and money laundering conspiracy, on November 2, 2023.

The government’s 116-page sentencing memorandum, delivered to Judge Lewis Kaplan on March 15, offers a thorough account of Bankman-Fried’s illegal activities.

The document emphasizes his scheme to make unlawful political donations, efforts to bribe Chinese officials, banking misconduct, attempts at shifting blame, and obstruction of justice.

Notably, Bankman-Fried was not extradited by the Bahamas for illegal political contributions or charged with bribing Chinese officials.

The memorandum sharply criticizes Bankman-Fried for not genuinely acknowledging his role in FTX’s collapse and the ensuing loss of customer funds, stating, “The defendant has failed to take genuine responsibility for his role in the collapse of FTX and the loss of customer funds.”

READ MORE: UK Financial Watchdog Eases Path for Crypto ETNs, Keeping Retail Investors on the Sidelines

Highlighting the gravity of his offenses, the memorandum argues for sentence enhancements and draws parallels between Bankman-Fried and other infamous financial criminals like Bernie Madoff.

It also includes personal accounts from victims, underscoring the significant distress caused by FTX’s failure.

Prosecutors believe a sentence within their recommended range would serve dual purposes: ensuring Bankman-Fried pays for his crimes while safeguarding society by preventing future fraudulent activities.

They also seek an $11 billion judgment against him, highlighting the financial magnitude of his crimes.

The decision on the final sentence rests with Judge Kaplan, who is not bound by the prosecution’s recommendation.

The sentencing is scheduled for March 28, marking a pivotal moment in the case against the disgraced cryptocurrency mogul.

This case not only underscores the severity of Bankman-Fried’s actions but also serves as a cautionary tale in the volatile world of cryptocurrency trading and investment.

To submit a crypto press release (PR), send an email to [email protected].

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Read on Crypto Intelligence Investment Disclaimer