FTX founder convicted of fraud? Could face up to 50 years in prison
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FTX founder convicted of fraud? Could face up to 50 years in prison
If Sam Bankman-Fried serves the full 50-year sentence, he will be 82 years old when released from prison.
Navigating Web3 tides with focused insightsSource: zycrypto
Translation: Blockchain Knight
U.S. prosecutors are seeking to sentence Sam Bankman-Fried, the convicted fraudster and founder of the now-bankrupt FTX exchange, to up to 50 years in prison.
Sentencing for Bankman-Fried, following his dramatic fall from grace, is scheduled for later this month.
According to a memorandum filed on March 15 by the U.S. Department of Justice’s Southern District of New York, Sam Bankman-Fried should be sentenced to 40–50 years in prison.
The disgraced crypto tycoon was convicted last November on seven counts of fraud and conspiracy after FTX collapsed at the end of 2022. He faces more than 100 years behind bars due to the severity of his crimes.
Prosecutors stated that Sam Bankman-Fried and his associates stole billions of dollars in customer funds from FTX through its sister trading firm, Alameda Research.
The Justice Department argued that the former crypto executive orchestrated what may be “the largest fraud in the past decade,” repeatedly comparing him to Bernie Madoff—a notorious New York financier who ran history’s biggest Ponzi scheme.
In addition, the prosecution’s memorandum highlighted other offenses committed by Sam Bankman-Fried, including “lying to investors,” “sharing falsified documents,” and “illegally funneling millions of dollars into our political system.”
In the memo, prosecutors said the former FTX CEO understood the law but, driven by “arrogance guided by the defendant’s own values and sense of superiority,” Say Bankman-Fried believed the rules did not apply to him.
Sam Bankman-Fried has pleaded not guilty to all charges. Last month, his legal team urged the court to impose a maximum sentence of six and a half years.
Nevertheless, prosecutors are demanding a $11 billion fine and asset forfeiture, along with a 50-year prison term for the former FTX chief.
“The government urges the court to issue a sentence that underscores the severity of harm inflicted upon thousands of victims and prevents the defendant from committing further fraud,” prosecutors said. “It must also send a strong message to others who might be tempted to engage in financial misconduct: the consequences will be severe.”
In the 116-page court filing, the Justice Department expressed no sympathy for Sam Bankman-Fried’s fraudulent conduct.
Part of the prosecutors’ memorandum reads: “Even now, Sam Bankman-Fried continues to deny any wrongdoing.”
Prosecutors also revealed that Sam Bankman-Fried may have planned to launch another digital asset exchange, reportedly considering naming it “Archangel LTD.”
The embattled FTX leader reportedly considered various strategies to rehabilitate his tarnished image, such as “emphasizing that the team didn’t know how to run FTX,” “having Cartel lawyers manage operations,” “portraying himself as extremely pro-crypto and freedom-oriented,” “appearing on Tucker Carlson’s show as a Republican,” “giving an interview to Michael Lewis,” and “posting radical and honest content on X.”
In conclusion, the Justice Department determined that the magnitude of losses in this case “places Sam Bankman-Fried among defendants who warrant sentences of four decades or more.”
If Sam Bankman-Fried serves a full 50-year sentence, he would be released from prison at the age of 82.
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