US prosecutors want SBF to serve at least four decades in prison US prosecutors want SBF to serve at least four decades in prison
The prosecution argued that SBF's punishment should match the severity of his crime, which was the biggest financial fraud in US history.
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Updated: Mar. 15, 2024 at 8:15 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Federal prosecutors have requested a prison sentence of 40 to 50 years for FTX founder Sam Bankman-Fried (SBF) following his conviction for conducting one of the most significant financial frauds in recent times through the misappropriation of over $8 billion of customer funds.
The US Attorney’s Office for the Southern District of New York filed a sentencing memorandum detailing SBF’s wide-ranging fraudulent activities on March 15.
According to the filing, his malpractices not only undermined the integrity of the financial and political systems but also left tens of thousands of victims across several continents grappling with significant losses.
Greed and ambition
The government’s filing paints a picture of SBF as a figure driven by unparalleled greed and ambition, whose actions reached into the political arena through unlawful contributions and even extended overseas with attempts to bribe Chinese government officials.
Beyond the financial deceit at FTX and Alameda Research, a trading firm he founded, SBF was also involved in banking misconduct, including operating an unlicensed money transmitting business and misleading banks to facilitate his operations.
In the aftermath of FTX’s bankruptcy, SBF attempted to deflect blame and evade responsibility, further complicating the legal proceedings and highlighting a persistent refusal to acknowledge the scope of his wrongdoing.
The prosecutors also outlined instances of obstruction of justice, including his use of encrypted messaging to delete evidence and tampering with witnesses.
Extraordinary punishment for extraordinary crimes
The request for a 40 to 50-year sentence emphasizes the severity of SBF’s actions and reflects the prosecution’s stance on the need for a punishment that matches the extraordinary impact of his crimes.
The memorandum argues that such a sentence is necessary not only to provide justice for the victims but also to serve as a deterrent against similar crimes in the rapidly evolving crypto sector.
In addition to the prison term, the government is seeking forfeiture of assets acquired through the criminal activities and has proposed victim compensation through remission as an alternative to traditional restitution. This approach aims to address the financial harm suffered by the victims, some of whom lost their life savings in the collapse of FTX.
SBF’s sentencing is set for March 28, marking a pivotal moment in bringing justice to the thousands of FTX customers who were wronged. The case stands as a significant chapter in the legal challenges facing the digital finance world.
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Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.