New York City – Lawyers representing Sam Bankman-Fried, the former founder and CEO of cryptocurrency exchange FTX, have strongly opposed the government’s recommendation for a 50-year prison sentence. In a letter to Judge Lewis Kaplan, Bankman-Fried’s legal counsel argued that the proposed sentence was excessive and compared it to a death-in-prison recommendation. The lawyers criticized the prosecution for adopting a “medieval view of punishment” and distorting the reality of the case.
Last week, U.S. prosecutors had submitted their sentencing recommendations, advocating for a minimum of 40 to 50 years in prison for Bankman-Fried. They emphasized the severity of his crimes, stating that they warranted harsh punishment under federal guidelines. However, the defense team argued that the government’s proposed sentence was “disturbing” and painted Bankman-Fried as a “depraved super-villain.”
The legal counsel highlighted that the bankruptcy proceedings of FTX were expected to compensate the exchange’s customers and lenders fully. They asserted that there were no actual financial losses and that the assets remained intact. According to the lawyers, each victim mentioned in the government’s opposition would be reimbursed 100 cents on the dollar, along with interest.
In their letter, Bankman-Fried’s lawyers urged Judge Kaplan to consider a significantly shorter sentence of five to six years, which they believe would align with the appropriate guidelines for the nature of the crimes. The former FTX CEO had been found guilty on seven counts related to fraud and conspiracy in November 2023, and his sentencing hearing was scheduled for March 28.
It is worth noting that prosecutors dropped a second trial against Bankman-Fried, which could have resulted in additional charges, in order to expedite the resolution of the case. Legal experts, including former prosecutor Rich Cooper and defense lawyer Sam Enzer, have opined that Bankman-Fried may face decades behind bars.
The defense’s strong opposition to the government’s recommended sentence sets the stage for an intense legal battle. With the sentencing hearing approaching, it remains to be seen how the court will consider the arguments put forward by both sides and determine the appropriate punishment for Bankman-Fried’s involvement in the cryptocurrency fraud case.