FTX founder guilty of fraud? or be sentenced to up to 50 years in prison

Source: Blockchain Knights

U.S. prosecutors want convicted fraudster Sam Bankman-Fried, the founder of bankrupt FTX exchange, to be sentenced to up to 50 years in prison.

After Bankman-Fried’s dramatic fall from grace, his sentencing is scheduled for later this month.

According to a memorandum submitted by the U.S. Department of Justice’s Southern District of New York on March 15, Sam Bankman-Fried should be imprisoned for 40-50 years.

The disgraced Crypto asset tycoon was found guilty of seven different counts of fraud and conspiracy in November last year following the FTX implosion in late 2022. He faces more than 100 years in prisonfor his crimes.

Prosecutors stated that Sam Bankman-Fried and his associates stole billions of dollars worth of customer funds from FTX through FTX’s sister company Alameda Research trading company.

The Department of Justice believes that the former Crypto Asset Company executive masterminded "perhaps the largest fraud in the past decade" and has repeatedly compared him to Bernie Madoff. Madoff was a notorious New York financier who had implemented the largest Ponzi scheme in history.

In addition, prosecutors also pointed out in the memo that Sam Bankman-Fried "lied to investors," "shared false documents," and "illegally donated millions of dollars to our political system," etc. offense.

Prosecutors said in the memo that the former FTX president understood the law, but "based on the defendant's arrogance guided by his own values ​​and sense of superiority," Sam Bankman-Fried believed the law did not apply. To oneself.

Sam Bankman-Fried has pleaded not guilty to all charges. In a memo last month, his legal team urged the court to sentence him to up to six and a half years in prison.

Despite this, prosecutors proposed an $11 billion fine and asset forfeiture, as well as 50 years in prison, against the former FTX boss.

The government urges the court to deliver a sentence that highlights the seriousness of the harm caused to thousands of victims and prevents the defendants from committing fraudulent acts again. It also provides guidance to others who may be tempted to engage in financial misconduct. "Sends a powerful signal and the consequences will be severe."

In the 116-page court filing, the Justice Department noted its lack of sympathy for Sam Bankman-Fried's fraud.

Part of the memo released by prosecutors reads: "Even now, Sam Bankman-Fried refuses to admit that he did anything wrong."

Prosecutors also said, Sam Bankman-Fried may be launching another digital asset exchange for the first time, telling a court that he had been toying with the idea of ​​naming the exchange Archangel LTD.

The embattled head of FTX considered various ways to save his tarnished image, such as "focusing on the fact that the team does not know how to operate FTX", "operating it on behalf of lawyer Cartel", "using extremely Appearing as a supporter of Crypto assets and pro-freedom”, “Appearing on Tucker Carlsen’s show and appearing as a Republican”, “Being interviewed by Michael Lewis”, “Speaking radically and honestly on X”, etc.

Ultimately, the Justice Department concluded that the magnitude of the losses in this case "placed Sam Bankman-Fried in a category of defendants deserving of a sentence of forty years or more.".

If Sam Bankman-Fried completes his 50-year sentence, he will be 82 years old when he is released from prison.