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The US Prosecutors are seeking a 40-50 year sentence for the FTX Exchange’s Sam Bankman-Fried (SBF) for fraud of over $8 Billion.
Prosecutors have accused Bankman-Fried of making unlawful political donations worth over $100 Million to more than 300 politicians and political groups, which they believe is the biggest-ever campaign finance offense. They have also claimed that Bankman-Fried paid $150 Million in bribes to Chinese government officials, making it one of the largest bribes paid by an individual.
FTX Bankruptcy and Sam Bankman
In November of 2022, FTX’s bankruptcy caused a major setback to the entire crypto industry, with the collapse of other major industry players wiping out billions in client wealth.
Fast forward to now, and Bankman-Fried is facing his sentencing date, with prosecutors pushing for a sentence that will ensure he will not be a free man until he potentially has a head full of gray hair. Additionally, he is facing a staggering $11 Billion fine, which is a clear statement that any attempts to manipulate the financial system will be punished severely.
What Prosecutors Said During the Trial
During the trial, prosecutors stated that even after FTX’s bankruptcy and his subsequent arrest, Bankman-Fried did not take responsibility for his actions. Instead, he blamed market events and other individuals, tampered with witnesses and repeatedly lied under oath.
Sam Bankman is facing charges that include wire fraud, securities fraud, and money laundering conspiracy. His defense team’s plea for leniency seems unlikely to be granted, given the severity of the accusations against him.
Sam Bankman’s Lawyers’ Arguments
Two weeks ago, Bankman-Fried’s lawyers attacked the probation office’s recommendation that their client should serve 100 years in prison, calling it “grotesque” and “barbaric.” Instead, they are urging the judge to sentence him to just a few years behind bars, claiming that federal sentencing guidelines recommend a term of five to 6 and a half years in prison.
Bankman-Fried’s legal team has used his medical conditions as well as his aspiration to make the world a better place through his now-closed cryptocurrency exchange as reasons for a reduced sentence. He is reported to have autism.
The DOJ has emphasized the scale of the alleged fraud and is seeking to collect every penny they can get, targeting not only Bankman-Fried’s ill-gotten gains but also the shady political contributions he made that have marred the U.S. election landscape. The trial involves SBF and other FTX executives.
During the trial, the depiction of Bankman-Fried was not that of a financial genius but rather that of a contemporary pirate who maneuvers the vast oceans of finance with a destroyed moral compass. Testimonies from his former allies who turned prosecution witnesses have further reinforced this image, depicting a man who thought himself above the law, orchestrating a complex web of deceit that would make Machiavelli blush.
Summary
Bankman-Fried is accused of making illegal political donations worth over $100 Million, which is believed to be the largest campaign finance offense. During the trial, he did not take responsibility for his actions, even after FTX’s bankruptcy and his subsequent arrest. His lawyers cited his medical conditions in their request for a more lenient sentence.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
