Sam Bankman-Fried, the founder and former CEO of FTX, was found guilty of fraud and conspiracy charges related to the demise of one of the biggest cryptocurrency exchanges in the world. The prosecution asked a federal judge to sentence Bankman-Fried to at least 40 years and up to 50 years in prison.
In a sentencing memo dated Friday, the Southern District of New York office of the Department of Justice stated that Bankman-Fried “lied to investors,” disseminated forged documents, and “pumped millions of dollars in illegal donations into our political system.” The memo further stated that a 40–50 year sentence is “necessary,” in addition to a recommended money judgement exceeding $11 billion and forfeiture.
“The unprecedented scope of the fraud at FTX may also be measured in the number and types of victims, in the fraud’s geographic reach, and in the breadth and frequency of the unlawful and unethical acts undertaken by the defendant in service of a scheme to use other people’s money for his own benefit and influence,” the prosecution stated.
Following a month-long trial that was connected to the functioning and demise of FTX and Alameda Research, two businesses he created, Bankman-Fried was found guilty on seven different counts of fraud and conspiracy last November. The date of his sentencing is set for March 28.
In a memo from last month, his defence team recommended a 6-year sentence, which the prosecution referred to as “woefully inadequate” in their filing on Friday.