Sam Bankman-Fried, the founder of FTX, orchestrated one of the largest financial frauds in history in his pursuit of dominating the cryptocurrency world. Federal prosecutors have recommended a prison sentence of 40 to 50 years for his crimes. This recommendation was made in papers filed in Manhattan federal court ahead of a March 28th sentencing.
The court’s probation officers have recommended a 100-year prison sentence, while Bankman-Fried’s defense lawyers are requesting leniency with a term of imprisonment not exceeding single digits.
Bankman-Fried, 32, was convicted in November on fraud and conspiracy charges, after experiencing a dramatic fall from grace the previous year. At that time, he and his companies were experiencing great success, even securing a Super Bowl advertisement and celebrity endorsements from the likes of Tom Brady and Larry David.
However, it was revealed that Bankman-Fried had stolen at least $10 billion from investors and customers between 2017 and 2022. He used this money to purchase luxury real estate, make risky investments, donate large sums to charities and political campaigns, and even buy praise from celebrities.
Prosecutors wrote that Bankman-Fried’s recent years have been marked by extreme greed, ambition, and a disregard for the rule of law. Despite his actions, he refuses to admit any wrongdoing. They also stated that he was driven by a megalomaniac desire for wealth and power, with aspirations of becoming the first trillionaire and even President.
The consequences of his crimes have been devastating, with the retirement funds and savings of many individuals and companies depleted. This includes those in financially insecure or war-torn countries, as well as those trying to break generational poverty.
Prosecutors emphasized that Bankman-Fried was fully aware of the illegality and unethical nature of his actions, but chose to ignore it due to his sense of superiority and distorted values.
After his companies collapsed in November 2022, Bankman-Fried was extradited from the Bahamas to the United States. He was initially allowed to remain at home with his parents in Palo Alto, California, but was eventually jailed after a judge concluded that he had attempted to tamper with trial witnesses.
In their presentence submission, prosecutors described Bankman-Fried’s crimes as one of the largest financial frauds in history, if not the largest in the last decade. They stated that he victimized tens of thousands of people and companies across multiple continents over several years.
The prosecutors also highlighted his illegal political donations, which amounted to over $100 million and are believed to be the largest campaign finance offense in history. Additionally, they mentioned his $150 million in bribes to Chinese government officials, which is one of the largest bribes ever made by an individual.
Even after his arrest, Bankman-Fried continued to shirk responsibility and deflect blame, as well as attempting to tamper with witnesses and lying under oath.
Two weeks ago, Bankman-Fried’s attorney, Marc Mukasey, criticized the probation office’s recommendation of a 100-year prison sentence, calling it “grotesque” and “barbaric.” He argued for a much shorter sentence, citing federal sentencing guidelines that recommend a term of five to 6 1/2 years in prison.
Mukasey also stated that Bankman-Fried should not be portrayed as the “evil genius” or greedy villain often depicted in the media, as he is a first-time, non-violent offender who was joined in his actions by at least four other individuals. He also mentioned that the victims of Bankman-Fried’s crimes are expected to recover the full amount of their losses.
Mukasey will respond to the prosecutors’ claims in a filing next week.
