Sam Bankman-Fried’s lawyer urged a decide on Tuesday to impose a lenient sentence for the FTX founder’s conviction for stealing $8 billion (roughly Rs. 6,63,30 crore) from prospects of the now-bankrupt cryptocurrency alternate, arguing purchasers would get most of their funds again.
In a sentencing submission, Bankman-Fried’s lawyer Marc Mukasey advised U.S. District Judge Lewis Kaplan {that a} tips vary between 5-1/4 and 6-1/2 years can be an applicable jail time period.
That is way lower than the utmost sentence of 110 years he faces after a jury discovered him responsible in November on seven counts of fraud and conspiracy, in what prosecutors have referred to as one of many greatest monetary frauds in American historical past.
Bankman-Fried pleaded not responsible and is predicted to enchantment his conviction and sentence. He acknowledged making errors operating FTX, however testified at trial that he by no means meant to steal buyer funds.
Kaplan is about to condemn the previous billionaire, who turns 32 subsequent week, on March 28.
The lawyer’s submission was accompanied by letters of help from Bankman-Fried’s mother and father, psychiatrist, and others.
His mother and father, the Stanford legislation professors Joseph Bankman and Barbara Fried, mentioned their son was tired of materials wealth and labored onerous to make prospects complete within the month between Bahamas-based FTX’s November 2022 collapse and his arrest on fraud prices a month later.
“Barbara and I…witnessed firsthand his single-minded focus on getting money back to depositors, long after there was any possibility he would be able to save any of his equity or wealth,” Bankman wrote.
Mukasey referred to as a 100-year tips vary calculated by probation officers “barbaric”, saying it was primarily based partly on a defective assertion that FTX’s prospects misplaced billions.
He pointed to the bankrupt firm’s current assertion that it anticipated to repay all prospects in full to again up the argument that Bankman-Fried didn’t got down to steal.
“The conviction does not address whether Sam intended to pay the money back. He did,” Mukasey wrote.
The probation officers’ calculation will not be binding on Kaplan. The U.S. Attorney’s workplace in Manhattan is predicted to make its personal sentencing suggestion by March 15.
Elizabeth Holmes or Michael Milken?
A graduate of the Massachusetts Institute of Technology, Bankman-Fried rode a growth within the values of digital belongings reminiscent of bitcoin to a web price Forbes journal as soon as estimated at $26 billion (roughly Rs. 21,55,31). His fortune evaporated in November 2022, when FTX declared chapter after a wave of buyer withdrawals.
At his month-long trial in Manhattan federal courtroom, three former shut associates testified that Bankman-Fried directed them to assist loot FTX buyer funds to plug losses at his Alameda Research hedge fund, even whereas presenting himself publicly as a accountable steward within the risky cryptocurrency market.
Prosecutors mentioned Bankman-Fried additionally used buyer funds to purchase luxurious actual property within the Bahamas and to donate to U.S. politicians who may help cryptocurrency-friendly rules.
Bankman-Fried testified that he didn’t understand how a lot Alameda owed to FTX till shortly earlier than each failed.
Mukasey acknowledged Bankman-Fried’s case bore some similarities to that of Elizabeth Holmes, one other younger entrepreneur who was sentenced to 11 years in jail in 2022 for defrauding buyers in her now-defunct blood-testing startup Theranos.
But he mentioned Holmes put sufferers in danger, and steered Bankman-Fried had extra in frequent with Michael Milken – a Wall Street financier within the Nineteen Eighties generally known as the “junk bond king” who was launched from jail after serving simply two years of an preliminary 10-year sentence on fraud prices.
“Given the same chance, Sam would dedicate his post-prison life to charitable works,” Mukasey wrote.
Mother says she would change locations
Bankman-Fried has been jailed at Brooklyn’s Metropolitan Detention Center since August, when Kaplan revoked his bail after discovering that he probably tampered with witnesses.
In a letter to Kaplan, Bankman-Fried’s psychiatrist George Lerner wrote that he’s on the autism spectrum. Mukasey wrote that Bankman-Fried struggles to make eye contact and talk with others, which might depart him weak in a jail setting.
Bankman-Fried’s mom wrote that her son had taken duty for the errors that led to FTX’s collapse and was remorseful, however mentioned she feared for his life in jail.
“His father and I face the very real possibility that we will not live long enough to see him freed,” Fried wrote. “I would gladly change places with him if I could.”
© Thomson Reuters 2024
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