The legal representative for former FTX CEO Sam “SBF” Bankman-Fried has submitted a memorandum to the United States District Court in Manhattan, requesting a prison sentence of five and a quarter to six and a half years. SBF was convicted of multiple counts of fraud and money laundering in November of last year and faces a maximum sentence of 110 years. The charges against him include wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. The federal judge overseeing the case, Lewis A. Kaplan, is set to announce the sentencing on March 28.
While the federal prosecutors are expected to present their own sentencing recommendations on March 15, the Pre-sentence Investigation Report (PSR) has suggested a 100-year sentence for SBF. However, the lawyers for FTX argue that this proposed sentence is excessively harsh, considering that SBF is a first-time offender with no prior criminal record. They also point out that he acted in collaboration with at least four other individuals and that the victims are expected to be fully compensated. The harm to customers, lenders, and investors is deemed to be zero, as the FTX bankruptcy estate is anticipated to repay all customers. Moreover, the defense team highlights the numerous letters of support submitted by friends and family, advocating for a lenient sentence.
SBF has been in custody at the Metropolitan Detention Center in Brooklyn since last summer. Various stories of his time in jail have emerged, including trading mackerel for a haircut and being extorted for protection. Now, another tale has come to light. According to The New York Times, SBF is reportedly offering trading and investment advice to fellow inmates and encouraging prison guards to invest in Solana’s SOL cryptocurrency token, with which he has a significant history.
FTX was once one of the largest cryptocurrency exchanges, valued at $32 billion in January 2022, before its collapse in November of the same year. SBF was found guilty of mismanaging $8 billion in customer funds and committing numerous other acts of fraud. The downfall of Mt. Gox was a pivotal event in the development of Chainalysis, a company specializing in blockchain analysis, and marked the emergence of blockchain detectives.