- Defense lawyers asked for 6.5 years or less in prison for Sam Bankman-Fried ahead of FTX fraud sentencing, citing his character and philanthropy.
- Bankman-Fried faces up to 20 years for fraud charges but his lawyers argue he did not intend fraud, only tried to earn yield on FTX assets.
- Prosecution will likely seek forfeiture of Bankman-Fried’s remaining assets, while defense recommended no forfeiture. Judge Kaplan has final discretion on sentencing.
Sam Bankman-Fried, former CEO of the now-defunct cryptocurrency exchange FTX, is facing fraud charges that caused the company’s downfall. His lawyers have recommended a light prison sentence despite the possibility of a 20-year maximum term.
Defense Lawyers Propose 6.5 Year Sentence
Attorneys for Bankman-Fried filed a sentencing memo asking for 6.5 years or less in prison. They submitted the request to Judge Lewis A. Kaplan ahead of the sentencing scheduled for March 28. The memo included letters vouching for Bankman-Fried’s character and past philanthropy work.
Charges and Possible Maximum Sentence
Federal prosecutors charged Bankman-Fried with orchestrating the fraud that brought down FTX. He faces up to 20 years in prison for the most serious charges. The defense memo argues that Bankman-Fried did not mean to commit fraud and was only trying to “earn yield” on FTX customer assets.
No Forfeiture Recommended
Bankman-Fried’s lawyers also recommended that he not have to forfeit any assets as part of the sentencing. This is despite allegations that he misused billions of dollars in FTX customer funds. The prosecution will likely seek forfeiture of Bankman-Fried’s remaining assets.
Judge Has Final Discretion
Ultimately Judge Kaplan will decide the appropriate sentence after considering both sides’ arguments. He is not bound by either the prosecution’s or defense’s sentencing recommendations. Bankman-Fried pleaded guilty to fraud charges in December 2022.
Conclusion
The sentencing of Sam Bankman-Fried will close out the FTX saga that shocked the crypto world. While his lawyers seek leniency, the prosecution wants punishment fitting the scale of the fraud. Judge Kaplan will now determine how to balance these factors.
