NewsProsecutors Seek 50-Year Sentence for FTX Founder in Historic Fraud Case

Prosecutors Seek 50‑Year Sentence for FTX Founder in Historic Fraud Case

Sam Bankman-Fried
Sam Bankman-Fried
Images source: © Getty Images | Yuki IWAMURA
11:09 AM EDT, March 17, 2024
Prosecutors in the United States are calling for a 50-year prison term for FTX founder Sam Bankman-Fried, refusing his pleas for a reduction in the proposed sentence. They describe the cryptocurrency exchange as "one of the biggest financial frauds in history," according to the "Financial Times".
**Sam Bankman-Fried - a 50-year sentence is advocated**. Prosecutors presented this recommendation to the judge, labeling the FTX cryptocurrency exchange's founding as "one of the largest financial frauds in history".

FTX: A significant fraud

The 32-year-old has been **convicted of seven counts of fraud and money laundering**. The sentence was declared at the end of 2023.
The court concurred with allegations that the "crypto king" misled tens of thousands of customers and embezzled over $8 billion from them and investors. The fraud persisted until the collapse of the FTX exchange in November 2022.
**Defense appeals for a maximum of six and a half years in prison**, portraying him as a "selfless" and "altruistic" individual who dedicated his life to philanthropy. They also highlighted Sam Bankman-Fried's autism spectrum disorder as a factor that might complicate his prison experience.

The pushback from prosecutors

Manhattan federal prosecutors dispute Sam Bankman-Fried's legal team's argument for leniency, based on the possibility of victims recuperating their investments through FTX's bankruptcy proceedings. They emphasized that victims suffered immense distress and shame from being unable to access their funds – feelings and reputational damages irreversible by any financial recovery.
Prosecution pointed out that Bankman-Fried, fully aware of the regulations, chose to ignore them, driven by "destructive megalomania" and a belief in his own superiority. They've warned that releasing him at an early age could risk further fraudulent activities.
Furthermore, they highlighted additional allegations that didn't reach the trial stage, including bribing Chinese officials and illicitly donating over $100 million to more than 300 politicians and political groups, purportedly the most extensive case of election campaign finance violation on record.
The sentencing hearing is set for March 28.
Related content