Lawyers for infamous FTX co-founder Sam Bankman-Fried stated that their client should face a maximum prison sentence of 6.5 years or less for his involvement in fraud that led to the collapse of the FTX stock exchange.
They presented their proposal to U.S. District Judge Lewis A. Kaplan in a detailed 98-page memo ahead of his sentencing, scheduled for March 28.
Federal judge reviews charity and community involvement
In a recent development, a federal judge has taken into account Sam’s charitable works and demonstrated commitment to others in determining an appropriate sentence. According to a memo, the judge suggested that a sentence that would immediately return Sam to a productive role in society would align with the sentencing objectives while ensuring it would not be harsher than necessary.
Sam Bankman Fried’s legal team further argued against ordering asset forfeiture. They further emphasized that none of the identified accounts potentially forfeited benefited Sam personally. They also emphasized that customers and creditors can get their money back through the bankruptcy proceedings of FTX, Sam’s affiliated company.
SBF’s legal battle
This decision comes after Sam’s conviction in November on charges including wire fraud and conspiracy, following a lengthy two-month trial. Judge Kaplan’s final ruling not only addresses the details of this case, but also has implications for other cryptocurrency executives who may face similar allegations of fund mismanagement.
SBF has been held at the Brooklyn Metropolitan Detention Center since last summer, NYTIMES reports. During this time, he allegedly provided cryptocurrency market advice and suggested to prison guards that they invest in Solana. Federal prosecutors are expected to file their sentencing recommendations on March 15.
Last month, Sam Bankman-Fried enlisted the help of Marc Mukasey, a former federal prosecutor known for his expertise in defending professionals. Mukasey took over from Bankman-Fried’s lawyers.
FTX busy with refunds
While the current leadership at FTX is working on reopening the exchange, the plan appears to be taking secondary priority. The immediate priority appears to be repaying creditors as quickly as possible.
FTX has successfully recovered more than $7 billion in assets to reimburse its customers. In addition, the company has entered into agreements with several government agencies in which they have agreed to delay collection of approximately $9 billion in claims until they have fully reimbursed customers.
On the other hand, FTX could also divest its $1 billion stake in AI startup Anthropic to repay creditors.
Source: https://cryptobenelux.com/2024/02/28/advocaten-van-sam-bankman-fried-zetten-in-op-maximaal-65-jaar-gevangenisstraf/
