Bankman-Fried’s Lawyers Argue Against 100-Year Sentence in Manhattan Federal Court
On Tuesday, attorneys for Sam Bankman-Fried filed a memo in Manhattan federal court asking the judge to reject the Probation Department’s recommendation of a 100-year sentence for their client. Bankman-Fried, who is 31 years old, was convicted in November on seven counts of fraud and conspiracy related to the collapse of FTX, the bankrupt cryptocurrency exchange he co-founded. Under federal sentencing guidelines, Bankman-Fried could face a maximum of 110 years.
The Argument for a More lenient Sentence
Marc Mukasey, Bankman-Fried’s lawyer, argues that the recommended sentence is “grotesque” and “barbaric.” He points out that Bankman-Fried is a nonviolent offender who was abetted by at least four other individuals. Mukasey also emphasizes the fact that victims, roughly one million whose funds have been frozen while FTX goes through bankruptcy court, are expected to be made whole.
Consideration of Charitable Works and Demonstrated Commitment
Mukasey recommends a prison sentence between five and six-and-a-half years, considering Bankman-Fried’s “charitable works and demonstrated commitment to others.” The sentencing is scheduled for March 28. Bankman-Fried has been in a Brooklyn jail since his bail was revoked in August.
Background of Sam Bankman-Fried and FTX
Until the fall of 2022, Bankman-Fried had been known as the billionaire prodigy behind FTX, a startup that boasted A-list celebrity backers and a sleek interface that attracted millions of people to try their hand at crypto trading. However, since FTX’s collapse, Bankman-Fried has been held up as a symbol of the largely unregulated industry built on speculative assets.
Dispute Over Calculation of Losses
One area in dispute is the calculation of losses incurred by victims. In white-collar crimes, the bigger the financial loss, the longer the sentence. It’s common for defendants to dispute the government’s calculations of such losses.
Judge’s Discretion
Ultimately, the decision comes down to the discretion of the judge overseeing the case, Lewis Kaplan of the Southern District of New York. “It’s common in white-collar cases in the Southern District for defendants to be sentenced to below guidelines, and certainly not 110 years,” said Jordan Estes, a former federal prosecutor with the US Attorney’s Office who is now a partner at Kramer Levin. “But this is a little bit of an unusual crime. So it’s hard to tell what will happen.”
Conclusion
The memo is a standard filing ahead of sentencing. The judge will weigh several factors in deciding Bankman-Fried’s sentence, including arguments from prosecutors, defense counsel and the recommendations from the Probation Department. The calculation of losses incurred by victims is one area in dispute. Ultimately, it is up to Judge Kaplan’s discretion to decide Bankman-Fried’s sentence.
