Lawyers representing the disgraced FTX co-founder Sam Bankman-Fried stated that their client should face a maximum sentence of 6.5 years or less in prison, for his involvement in fraud leading to the collapse of the FTX exchange.

They presented their proposal to US District Judge Lewis A. Kaplan in a detailed 98-page memo prior to his sentencing scheduled for March 28.

Federal Judge Considers Sam Bankman Fried’s Charity and Community Commitment

In a recent development, a federal judge has taken into account the charitable works and demonstrated commitment by Sam to others in determining an appropriate sentence. According to a memo, the judge suggested that a sentence returning Sam promptly to a productive role in society would align with the purposes of sentencing while ensuring it is not greater than necessary.

Sam Bankman Fried’s legal team further argued against ordering the forfeiture of any assets. They further emphasized that none of the identified accounts slated for possible forfeiture benefited Sam personally. They also highlighted that customers and creditors stand to recoup their funds through the bankruptcy proceedings of FTX, the company associated with Sam.

This decision comes after Sam’s conviction in November on charges including wire fraud and conspiracy, following a lengthy two-month trial. Judge Kaplan’s final sentencing ruling not only addresses the specifics of this case but also carries implications for other cryptocurrency executives potentially facing similar allegations of fund mismanagement.

SBF has been held at the Brooklyn Metropolitan Detention Center since last summer, as reported by NYTIMES. During this time, he allegedly provided cryptocurrency market advice and suggested investing in Solana to prison guards. Federal prosecutors are expected to submit their sentencing recommendation on March 15.

Last month, Sam Bankman-Fried enlisted the services of Marc Mukasey, a former federal prosecutor renowned for his expertise in white-collar defense. Mukasey took over from Bankman-Fried’s trial attorneys. Notably, Mukasey achieved a favorable outcome for Nikola Corp. founder Trevor Milton late last year, securing a four-year sentence, significantly lower than the 11 years requested by prosecutors. It’s noteworthy that both cases unfolded in the same court where Bankman-Fried’s sentencing is pending.

FTX Reopening Plans

While the current administration at FTX was working on reopening the exchange, the plan seems to take secondary priority. The immediate priority seems to be repaying the creditors as soon as possible.

FTX has successfully recovered more than $7 billion in assets to reimburse its clients. Furthermore, the company has reached agreements with various government entities, wherein they have agreed to postpone the collection of approximately $9 billion in claims until they have completely refunded the customers.

On the other hand, FTX could also be offloading its $1 billion stake in AI startup Anthropic to repay creditors.

 

The post Sam Bankman Fried’s Defense Counsel Proposes 6 Year Sentence or Less appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am