The legal representative for Sam Bankman-Fried, the Founder of FTX, urged US District Judge Lewis Kaplan yesterday (Tuesday) to consider a lenient sentence for his client’s conviction related to the alleged misappropriation of funds from customers of the now-defunct cryptocurrency exchange.
Bankman-Fried’s solicitor, Marc Mukasey, emphasised that most clients would likely recover their funds, mitigating the severity of the situation.
The sentencing submission presented by Mukasey proposed a prison term ranging between five years and three months to six years and six months, notably shorter compared to the maximum sentence of 110 years that Bankman-Fried faces following his conviction on seven counts of fraud and conspiracy.
Prosecutors had labelled the case as one of the most significant cases of financial fraud in American history.
Bankman-Fried, who pleaded not guilty to the charges, intends to appeal both his conviction and the anticipated sentence.
Throughout the trial, he maintained that any errors in managing FTX were not indicative of an intention to defraud customers, underscoring his commitment to rectifying the situation.
Scheduled for sentencing on March 28, Bankman-Fried, who will turn 32 next week, stands at a critical juncture as the court weighs the appropriate punishment.
In a bid to influence the court’s decision, letters of support from his parents, psychiatrist, and other well-wishers were submitted alongside Mukasey’s plea for leniency.
Joseph Bankman and Barbara Fried, Bankman-Fried’s parents, recounted their son’s diligent efforts to restore customers’ funds following FTX’s collapse in November 2022, underscoring his altruistic intentions amid the tumultuous period preceding his arrest.
Mukasey vehemently criticised the probation officers’ recommendation of a 100-year guidelines range, dismissing it as “barbaric” and contesting the notion that Bankman-Fried had knowingly defrauded customers.
He highlighted FTX’s recent assurances regarding the full repayment of customers, asserting that Bankman-Fried had consistently aimed to uphold his financial obligations.
The sentencing deliberations remain fluid, as the US Attorney’s office in Manhattan is poised to present its sentencing recommendation by March 15, shaping the outcome of this high-profile case that has reverberated across the cryptocurrency community and beyond.