US prosecutors seek 50‑year sentence for FTX founder in landmark fraud case
Prosecutors in the United States are asking for a 50-year prison sentence for FTX founder Sam Bankman-Fried. They are also dismissing the "crypto king's" requests for a reduction of the proposed sentence, labelling the cryptocurrency exchange as "one of the biggest financial frauds in history," according to the "Financial Times".
17 March 2024 10:09
Sam Bankman-Fried should be imprisoned for as long as 50 years – this is the recommendation the prosecutors have made to the judge. They claim that the founder of the cryptocurrency exchange FTX orchestrated one of the most significant financial frauds in history.
The FTX exchange was a significant scam
The 32-year-old has been found guilty of seven charges of fraud and money laundering. The verdict was declared at the close of 2023.
The court concurred with the arguments that the "crypto king" "deceived tens of thousands of individuals" and also misappropriated over £6.6 billion from his clients and investors. The fraudulent activity continued until November 2022, when the FTX exchange went under.
The 32-year-old's lawyers have urged the court to limit the sentence to no more than six and a half years. They justified this by depicting their client as a "selfless" and "altruistic" young individual who "dedicated his life to philanthropy". They also mentioned that Sam Bankman-Fried is on the autism spectrum, which might make prison life particularly challenging for him.
Prosecutors challenge the defence's arguments
Manhattan federal prosecutors disagree with Sam Bankman-Fried's legal team's assertion that leniency should be shown because the victims are likely to recoup their invested funds during FTX's bankruptcy process. The prosecutors highlighted the victims' "stifling sense of fear and despair" when they were unable to withdraw their money, along with "shame and embarrassment, and the consequent damages to life and business, which cannot be undone".
The prosecution also emphasized that the FTX founder "knew the rules but chose to believe they didn’t apply to him" and engaged in unethical actions "driven by destructive megalomania" and "a sense of superiority". Moreover, they suggested that if the accused is released from prison while still young, there's a chance he could partake in more fraudulent schemes.
Additionally, they noted several accusations that did not proceed to trial, including allegations of bribing Chinese government officials and illegal contributions to over 300 politicians and political groups, totalling more than £82 million, which, according to the prosecution, constituted the largest electoral campaign finance crime ever recorded.
The sentencing hearing is set for 28 March.
