Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, will officially receive his sentence on the 28th. The U.S. prosecution has recommended a prison term of 40 to 50 years, but Bankman-Fried’s lawyer responded on Tuesday, stating that a 50-year sentence distorts reality and that the prosecution’s request is essentially intended to have Bankman-Fried die in prison.
Summary:
FTX Victims’ Tearful Testimony: Long-term Unemployment, Mental and Physical Collapse…Prosecutors Seek 50-Year Sentence
Background:
Prosecutors Request 50-Year Sentence to Deter Similar Fraud Cases Ahead of Bankman-Fried’s Trial
Bankman-Fried, the founder of bankrupt cryptocurrency exchange FTX, was convicted of all 7 charges, including fraud and money laundering, by the jury in November last year. He will officially receive his sentence on the 28th of this month.
In a sentencing memorandum submitted to the U.S. Southern District Court of New York on the 15th, U.S. prosecutor Damian Williams requested a prison term of 40 to 50 years for Bankman-Fried, accusing him of causing harm to over a million people and leading to the collapse of FTX, resulting in over $10 billion in losses.
Bankman-Fried’s Defense Attorney Counters
However, according to Bloomberg’s report, Bankman-Fried responded to the court on Tuesday, stating that the U.S. prosecutor’s recommendation of a 50-year sentence “distorts reality” and expressing dissatisfaction with being portrayed as a “fallen supervillain.” His defense attorney described the prosecution’s statements as “troubling” and accused the U.S. government of trying to crush this 32-year-old man.
Previously, the prosecution stated to the judge that Bankman-Fried displayed “unparalleled greed and arrogance” and committed crimes due to “self-centered values and a sense of superiority.” While the prosecution’s requested sentence is far lower than the 100 years suggested by the U.S. criminal sentencing guidelines, it is significantly higher than the defense attorney’s recommended sentence of 6 and a half years.
Victims Accuse FTX Collapse of Causing Severe Harm
In support of their sentencing recommendation, the U.S. Department of Justice submitted dozens of victim impact statements from FTX creditors to the court on Monday. These victims come from all over the world and in their letters, they describe the FTX assets they held and the impact of FTX’s bankruptcy on their lives.
These victims state that the collapse of FTX in 2022 “took away their financial security,” causing emotional harm and “creating a sense of insecurity and distrust in the financial system.” Several victims claim to have become unemployed due to health issues and express doubts about whether they can fully recover their FTX assets, as FTX plans to compensate based on the asset value at the time of the November 2022 bankruptcy, rather than the current asset value.
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