:max_bytes(150000):strip_icc()/USProsecutorsSeek40-50YearPrisonSentenceForFormerFTXCEOSamBankman-Fried-dfa7776229b04f788d3ac986c6ff62de.png "US Prosecutors Seek Up To 50-Year Prison Sentence For Former FTX CEO Sam Bankman-Fried")
:max_bytes(150000):strip_icc():format(jpeg)/USProsecutorsSeek40-50YearPrisonSentenceForFormerFTXCEOSamBankman-Fried-dfa7776229b04f788d3ac986c6ff62de.png)
Key Takeaways
- Prosecutors in former FTX CEO Sam Bankman-Fried’s criminal trial sought 40-50 years of imprisonment ahead of the sentencing later this month.
- Almost a year after FTX collapsed, a jury found Bankman-Fried guilty on seven counts including fraud and money laundering after a month-long trial.
- FTX collapsed and filed for bankruptcy in November 2022 after customers withdrew large amounts of deposits from the crypto exchange, which they were unable to process.
Sam Bankman-Fried, former CEO of failed crypto exchange FTX, should get as much as 40 to 50 years in prison due to the “brazen disrespect” he showed for the law in his crimes, prosecutors said in a court filing Friday. Bankman-Fried’s lawyers had previously recommended a sentencing of less than seven years.
Bankman-Fried has been convicted of “orchestrating one of the largest financial frauds in history” and victimized tens of thousands of people along the way, said the filing. The more than $8 billion worth of funds and assets that were misallocated via Bankman-Fried’s misdeeds are also referred to as “unprecedented” in scope. For these reasons and more, the prosecution is recommending a sentencing of up to 50 years.
Notably, the filing points out that Bankman-Fried stole money from customers, lied to investors, made millions in illegal political donations, bribed foreign officials, and more, all of which are worthy of their own lengthy sentences.
The filing also points out that, subsequent to his arrest, Bankman-Fried continued to deflect blame to others, lie about his own involvement in the fraud under oath, and tamper with witnesses. “[H]is life in recent years has been one of unmatched greed and hubris; of ambition and rationalization; and courting risk and gambling repeatedly with other people’s money,” the prosecution’s filing added.
Despite the magnitude of FTX’s collapse, recent reports indicate customers will be able to fully recover the U.S.dollar-denominated assets they held on the exchange at the time of its bankruptcy. That said, the true value of those assets is much larger than what FTX’s former customers will receive, as the crypto market has experienced a heavy increase in overall valuation since November 2022.