Prosecutors Seek 40-50yrs Sentence for FTX Founder Sam Bankman-Fried

Sam Bankman-Fried, founder of the collapsed crypto exchange FTX, faces a potential 40-50 year prison term, according to U.S. prosecutors. They argue this sentence is necessary due to the “historic fraud” committed by Bankman-Fried, who is accused of lying to investors, using fake documents, and illegally funneling money into political campaigns.

In a sentencing memo filed Friday, the Department of Justice detailed their case for a lengthy sentence and a hefty fine exceeding $11 billion. They described this figure as “conservative” considering the vast sums lost by FTX investors.

Prosecutors are also pursuing the forfeiture of assets tied to Bankman-Fried, including seized bank accounts, cryptocurrency holdings, and proceeds from the sale of Robinhood shares. These efforts aim to recover some of the losses suffered by victims.

The government intends to recoup some of the lost funds by targeting the political donations made by Bankman-Fried and other FTX executives. Prosecutors allege these donations constitute “the largest-ever campaign finance offense,” and they’ve documented over $3 million in returned donations already.

To justify the harsh sentence, prosecutors referenced cases involving financial fraud with significant losses exceeding $100 million. They highlight Bernie Madoff’s 150-year sentence for a $13 billion Ponzi scheme.

This sentencing recommendation comes after Bankman-Fried’s conviction on fraud and conspiracy charges. The collapse of FTX, once a leading cryptocurrency exchange, sent shockwaves through the crypto world and resulted in significant financial losses for its investors.