Thursday, April 18, 2024

FTX founder seeks lenient sentence, citing potential customer recovery.

Following the client’s conviction for stealing $8 billion from users of the now-bankrupt cryptocurrency exchange, FTX founder Sam Bankman-Fried’s attorney asked a judge to impose a moderate sentence on Tuesday, arguing that FTX’s consumers will receive the majority of their money back.

During a sentencing submission, attorney Marc Mukasey informed U.S. District Judge Lewis Kaplan that a prison term falling between the guidelines’ five and a quarter and six and a half years would be suitable. The maximum sentence of 110 years that Mukasey may receive is far less than what he has proposed. In November, a jury found him guilty on seven counts of fraud and conspiracy.

Bankman-Fried, 31, entered a not guilty plea and is anticipated to challenge both his verdict and punishment. Although he admitted to making mistakes when managing FTX, he claimed in court that he never intended to embezzle money from his clients.

On March 28, Kaplan is slated to sentence Bankman-Fried. Letters of support from Bankman-Fried’s parents, a doctor, and other individuals were attached to Mukasey’s proposal.

In the months between FTX’s collapse in November 2022 and his arrest on fraud charges a month later, the former billionaire’s parents, Stanford law professors Joseph Bankman and Barbara Fried, maintained that their son worked diligently to restore money to consumers and had no interest in material wealth.

“Barbara and I saw his intense dedication to refunding customers, even after he knew he wouldn’t be able to recover any of his own money,” wrote Bankman.

A 100-year parameter range set by probation officers, according to Mukasey, is “barbaric,” partially because it is predicated on a false claim that FTX’s clients lost billions of dollars.

The attorney maintained that Bankman-Fried had no intention of stealing, citing the company’s recent assertion that it expected to reimburse all consumers in full.
“Whether Sam meant to repay the money is not addressed in the conviction. He did,” wrote Mukasey.

Kaplan is not required to follow the probation officers’ calculations, and by March 15, the Manhattan U.S. Attorney’s Office is anticipated to provide a recommendation for punishment.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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