Federal prosecutors stated that Sam Bankman-Fried, the disgraced cryptocurrency mogul, should get a prison term of 40 to 50 years for his fraud conviction. The recommendation was detailed in a filing in U.S. District Court in Manhattan. His sentencing hearing is set for March 28, with Judge Lewis A. Kaplan determining his fate. He faces a maximum penalty of 110 years.
The prosecutors emphasized the need for a prison sentence that matches the magnitude of his crimes in a 116-page memo to the judge. Mr. Bankman-Fried’s lawyers argued for a sentence of no more than six and a half years in a separate filing last month.
A spokesperson for Mr. Bankman-Fried declined to comment. Just a year and a half ago, he was a prominent crypto mogul overseeing the FTX exchange valuing $40 billion. However, FTX’s sudden collapse led to his legal troubles.
In November, a Manhattan jury found Mr. Bankman-Fried guilty of embezzling $8 billion to fund political contributions, investments, and real estate purchases. His downfall signified a dark turn for the lightly regulated crypto industry.
Despite Mr. Bankman-Fried’s impending sentencing, the crypto market has rebounded with surging digital asset prices, including Bitcoin hitting a new high this month.
Mr. Bankman-Fried faces a potentially lifelong prison term, with a probation officer recommending 100 years. His legal team deemed this recommendation extreme. Comparisons were drawn to Bernard Madoff’s 150-year sentence for a massive Ponzi scheme.
Mr. Bankman-Fried’s lawyer argued against similarities to Madoff, highlighting the swiftness of returning funds to FTX customers compared to Madoff’s victims. The judge, not bound by federal guidelines, can consider various factors in determining the sentence, such as Mr. Bankman-Fried’s age, first-time offender status, and potential for rehabilitation.
Testifying in his trial may work against Mr. Bankman-Fried, as he appeared evasive at times. Judge Kaplan could factor in his truthfulness during sentencing.
