FTX Fraudster Sam Bankman-Fried Will Be Sentenced Today for Scamming Thousands of Crypto Investors Out of $8 Billion

Former billionaire crypto boss Sam Bankman-Fried, who was convicted of fraud and money laundering, will be sentenced today for his crimes.

Bankman-Fried, 32, was convicted last November of fraud and conspiracy by a jury that found he illegally used money from FTX depositors to cover his expenses, which included the purchase of luxury properties in the Caribbean, alleged bribes to Chinese authorities and private planes.

He will return to a New York courtroom on Thursday.

Prosecutors recommended a prison sentence of 40 to 50 years.

“The defendant victimized tens of thousands of people and businesses, on multiple continents, over a period of several years,” prosecutors told Judge Lewis Kaplan in a court filing.

“He stole money from clients who entrusted it to him; he lied to investors; he sent fabricated documents to creditors; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes deserves a long sentence,” they added.

Bankman-Fried's lawyers, friends and family have called for leniency, saying he is unlikely to reoffend. They also say FTX investors have largely recovered their funds, a claim disputed by bankruptcy lawyers, FTX and its creditors.

“Mr Bankman-Fried continues to live a life of delusion,” wrote John Ray, who was named CEO of FTX after its collapse and had to clean up the bankrupt company. “The 'business' he left on November 11, 2022 was neither solvent nor safe.”

Two weeks ago, Bankman-Fried's attorney, Marc Mukasey, criticized the parole office's recommendation of 100 years in prison, saying a sentence of that length would be “grotesque” and “barbaric.”

He urged the judge to sentence Bankman-Fried to a term of five to six and a half years in prison.

“Sam is not the ‘evil genius’ portrayed in the media or the greedy villain described at trial,” Mukasey said, calling his client a “first-time, non-violent offender.”

FTX's collapse in 2022 was a stunning fall for Bankman-Fried, who became a billionaire and business celebrity promoting the company, a platform that people could use to deposit and trade crypto.

It attracted millions of customers before rumors of financial problems sparked a run on deposits.

In November 2023, a US jury concluded that Bankman-Fried had stolen billions of money from stock exchange customers before the collapse to buy properties, make political donations and use it for other investments.

Many of these clients now appear prepared to recover significant sums under a plan being developed in the separate bankruptcy case.

Under this proposal, former clients could receive money based on the value of their holdings at the time of the stock market collapse.

In court proceedings, Bankman-Fried's defense, who is expected to appeal his conviction, argued that such recovery justifies a lighter sentence.

They said this proved that “the money was always available,” which “would have been impossible if (FTX’s) assets had disappeared into Sam’s personal pockets.”

But the refund plan has left many former customers outraged as they will miss out on the crypto recovery that has occurred since then.

John Ray, the lawyer who led FTX into bankruptcy and a critic of Bankman-Fried, noted the concerns in his own letter to the court.

“Make no mistake; customers, non-governmental creditors, government creditors, and non-privileged shareholders have suffered and continue to suffer,” he wrote to the court, arguing that the minimal loss claims were a sign that Bankman-Fried continued to live.” a life of illusion.”

Source: www.lindaikejisblog.com