FTX’s Sam Bankman-Fried Should Face 40–50 Years In Prison: Prosecutors
In a sentencing memo filed on Friday, federal prosecutors recommended that Sam Bankman-Fried be sentenced to a minimum of 40 years and a maximum of 50 years in prison.
The Department of Justice’s Southern District of New York office argued that the severe sanction is necessary due to the gravity of Bankman-Fried’s crimes. These include fraud, conspiracy, and what they believe to be the largest campaign finance offense in history.
Key highlights:
- Prosecutors allege Bankman-Fried lied to investors, shared fake documents, and made illegal political donations.
- The DOJ is seeking a money judgment of over $11 billion and forfeiture of Bankman-Fried’s assets.
- Government efforts to recover funds have targeted political contributions made by FTX executives in the 2022 U.S. elections.
- Witnesses testified that Bankman-Fried bribed foreign government officials and directed Alameda Research to take out a massive line of credit on FTX.
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Throughout the memo, prosecutors emphasized that Bankman-Fried knowingly committed illegal actions but acted as if he were above the law. In addition, they referenced testimony from the trial, including allegations made by Bankman-Fried’s former inner circle. These include Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, FTX’s former Chief Technology Officer.
Proposed forfeiture order seeks Bankman-Fried funds to be seized
The proposed forfeiture order details the sources of funds to be seized, including deposits in U.S. bank accounts, funds in Binance and Binance.US accounts, and proceeds from the sale of Robinhood shares.
Sam Bankman-Fried’s legal counsel submitted a memorandum last month proposing a six-year prison term. The prosecution deemed the request “woefully inadequate” in Friday’s filing. Additionally, the DOJ dismissed the defense team’s argument that FTX creditors are likely to recover the majority of their funds.
To support their case, prosecutors included exhibits such as direct messages sent to Bankman-Fried by FTX customers and selected Google documents that appear to detail options for addressing the bankruptcy situation.
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The documents suggest that Bankman-Fried considered various strategies, from blaming attorneys and appearing on media outlets to sharing information about his depression medication.
Bankman-Fried, who was convicted on seven counts of fraud and conspiracy last November, is scheduled to be sentenced on March 28.
