Lawyers representing former FTX CEO Sam “SBF” Bankman-Fried are criticizing the proposed maximum sentence of 50 years in prison for their client, stating that it reflects a “medieval” perspective on punishment and does not accurately reflect the seriousness of his crimes.
In response to the government’s sentencing proposal, Bankman-Fried’s lawyers, Marc Mukasey and Torrey Young, wrote a letter to Judge Lewis Kaplan on March 19. The government had filed additional documents on March 15, proposing a sentence of 40 to 50 years for the former crypto billionaire, who was convicted of fraud and money laundering charges in November 2023.
The lawyers argued that the proposed sentence relied on an outdated view of punishment and essentially amounted to a recommendation for a life sentence. They stated that this was not a just outcome and instead proposed a reduced sentence of five to six years in prison.
To support their argument, the lawyers made several points. They claimed that there were no actual financial losses since the bankruptcy proceedings would ensure that all customers and lenders would be compensated and the assets would remain intact. They also countered the prosecution’s portrayal of Bankman-Fried as greedy, pointing to his philanthropic efforts and modest lifestyle.
Furthermore, the lawyers disputed the government’s assertion that Bankman-Fried posed a high risk of re-offending, citing research on low recidivism rates among white-collar, educated offenders without prior records.
The lawyers also accused the prosecution of making baseless claims, such as Bankman-Fried shirking responsibility and misrepresenting sentencing data for similar fraud cases. They noted that they had not found any federal defendant convicted of a non-violent offense who had served a 40 to 50-year sentence and been released.
Mukasey and Young argued that Bankman-Fried had already suffered significant losses in his personal and professional life and proposed a reduced sentence of approximately five to six and a half years.
Bankman-Fried was found guilty of all seven charges brought against him by the U.S. government after a jury trial, nearly a year following the collapse of FTX.
In light of the collapse of FTX, there are concerns about the trustworthiness of crypto exchanges.