By LARRY NEUMEISTER (Associated Press)
In New York, federal prosecutors have recommended a prison term of 40 to 50 years for FTX founder Sam Bankman-Fried, who orchestrated a major financial fraud in the cryptocurrency world.
The prosecutors made this recommendation for the sentencing on March 28, where the judge will also consider a 100-year prison term proposed by the court’s probation officers, along with a request by defense lawyers for leniency and a single-digit prison term.
32-year-old Bankman-Fried was found guilty in November of fraud and conspiracy after a significant downfall from the success he experienced earlier, including a Super Bowl ad and endorsements from celebrities like Tom Brady and Larry David.
According to prosecutors, Bankman-Fried's success involved stealing over $10 billion from investors and customers between 2017 and 2022, using the money for real estate, risky investments, large charitable donations, political contributions, and gaining praise from celebrities.
Prosecutors wrote that his recent life has been characterized by extreme greed, ambition, risk-taking with other people's money, and refusal to admit wrongdoing.
They also said that Bankman-Fried aimed to amass vast wealth and power, even aspiring to become President and the first trillionaire, and was willing to do almost anything to achieve it.
The prosecutors noted that his criminal activities showed complete disregard for the law, causing financial harm to many, particularly those in vulnerable financial situations and those aiming to break out of poverty.
They mentioned that he was fully aware of the illegality and unethical nature of his actions, but chose to ignore it due to his egotistical megalomania.
Bankman-Fried was extradited to the U.S. from the Bahamas in December 2022 after his companies collapsed. Initially allowed to stay with his parents in California, he was later jailed for attempting to tamper with trial witnesses.
In their submission before sentencing, prosecutors described Bankman-Fried’s crimes as one of the largest financial frauds in history and likely the biggest in the past decade.
They stated that the defendant victimized tens of thousands of people and companies across multiple continents over several years, committing theft, lying to investors, providing false documents to lenders, making illegal political donations, and bribing foreign officials, all of which they believe deserve a long prison sentence.
They said his illegal contributions to over 300 politicians and political action groups, totaling more than $100 million, are believed to be the biggest campaign finance violation ever.
And they said his $150 million in payoffs to Chinese government officials was one of the largest ever by an individual.
“Even after FTX’s bankruptcy and his subsequent arrest, Bankman-Fried avoided taking responsibility, shifted blame to market events and other individuals, tried to influence witnesses, and repeatedly lied under oath,” prosecutors said, referring to his trial testimony.
Two weeks ago, Bankman-Fried lawyer Marc Mukasey criticized a probation office suggestion that their client serve 100 years in prison, stating that a sentence of that length would be “grotesque” and “barbaric.”
He recommended the judge to sentence Bankman-Fried to only a few years in prison after calculating federal sentencing guidelines to propose a term of five to 6 1/2 years.
“Sam is not the ‘evil genius’ portrayed in the media or the greedy villain described at trial,” Mukasey said, describing his client as a “first-time, non-violent offender, who was involved in the conduct in question with at least four other responsible individuals, in a case where victims are likely to recover — were always likely to recover — the full amount.”
Mukasey said he will address the prosecutors’ allegations in a filing next week.
