Prosecutor recommends sentencing Sam Bankman-Fried to 40 to 50 years in prison

Prosecutor recommends sentencing Sam Bankman-Fried to 40 to 50 years in prison

The prosecution demanded 40 to 50 years in prison for Sam Bankman-Fried, the founder of the FTX crypto exchange. He is to be sentenced on March 28, Reuters reports.

“Justice demands that he receive a prison term commensurate with his extraordinary crimes,” prosecutors said in a sentencing memorandum. They are also demanding that Bankman-Fried pay more than $10 billion in compensation for the losses suffered by the exchange’s investors.

On November 3, 2023, a jury found Sam Bankman-Fried guilty of seven counts, including wire fraud and criminal conspiracy, and the embezzlement of $8.9 billion in customer money from FTX customer accounts. According to prosecutors, “thousands of ordinary people entrusted their savings to the stock exchange.”

“Even now, Bankman-Fried refuses to admit that what he did was wrong. “His life in recent years has been filled with unbridled greed and arrogance, ambition and rationalization, as well as risk-taking and constant gambling with other people’s money,” prosecutors said in the memorandum. According to prosecutor Damian Williams, the long term “will allow society to be sure that the accused will not cheat again when he is released.”

According to Reuters, the maximum term of imprisonment established by law on the charge of the founder of FTX is 110 years. In turn, Bankman-Fried’s lawyers believe that the term should not exceed 6 years and 6 months, since the founder of the exchange had no intention of stealing other people’s funds, and the clients of the exchange will receive their money back.

According to an investigation by the Securities and Exchange Commission (SEC), Bankman-Fried raised more than $1.8 billion from investors in FTX since 2019. Most of the amount (about $1.1 billion) was provided by approximately 90 investors from the United States. Benkman-Fried secretly diverted funds of FTX clients from investors to his hedge fund Alameda Research LLC, to which he provided a virtually unlimited “line of credit” from the funds of the platform’s users. Bankman-Fried used the pooled funds of FTX clients in Alameda for venture capital investments, expensive real estate purchases, and large political donations.

On November 11, 2022, the FTX cryptocurrency exchange announced to initiate bankruptcy proceedings under Article 11 of the US Bankruptcy Code due to financial instability on the platform. Afterward, Bankman-Fried apologized to clients and acknowledged oversight deficiencies at FTX, but said he personally did not believe he was criminally responsible for the actions.

On December 14, the 30-year-old founder of FTX, Sam Bankman-Fried, was arrested at the request of the United States at his home in a guarded village in the capital of the Bahamas, Nassau. A Bahamian court denied Benkman-Frieda bail.

On December 21, 2022, a court in the Bahamas approved the extradition to the United States of the founder of the FTX crypto exchange, Sam Bankman-Fried.

In early January 2023, Bankman-Fried pleaded not guilty at a court hearing to criminal charges of defrauding crypto exchange investors and causing them billions in losses. The prosecutor’s office called his actions an epic fraud.

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