Sam Bankman-Fried‘s lawyer advocated for a lenient sentence on Tuesday, asserting that most funds stolen from customers of the bankrupt cryptocurrency exchange, FTX, would be returned.
Lawyer Marc Mukasey recommended a prison term between 5-1/4 and 6-1/2 years, significantly less than the maximum 110 years Bankman-Fried faces after being found guilty of fraud and conspiracy. Bankman-Fried, who pleads not guilty, plans to appeal both conviction and sentence. Sentencing is scheduled for March 28.
Accompanied by supportive letters from family and a psychiatrist, Mukasey argued that Bankman-Fried’s intention was not to steal but to rectify mistakes made in managing FTX.
Bankman-Fried’s parents, Joseph Bankman and Barbara Fried testified to their son’s relentless efforts to reimburse depositors even after FTX’s collapse in November 2022.
The sentencing submission rebuked the probation officers’ recommended 100-year term as “barbaric,” asserting it was based on flawed assumptions about FTX’s losses. Mukasey pointed to recent claims by the bankrupt company, indicating full repayment to customers, as evidence of Bankman-Fried’s non-malicious intent.
Comparisons were drawn to other high-profile cases like Elizabeth Holmes and Michael Milken, with Mukasey arguing Bankman-Fried’s actions were more akin to the latter. He emphasized Bankman-Fried’s remorse and commitment to post-prison philanthropy.
Bankman-Fried, an MIT graduate and former billionaire, saw his fortune vanish with FTX’s bankruptcy. Prosecutors allege he diverted customer funds to plug losses at his hedge fund and for personal use, including real estate investments and political donations.
Despite his culpability, supporters fear for Bankman-Fried’s safety in prison, citing his struggles with communication and vulnerability.
Incarcerated since August, Bankman-Fried awaits his fate as sentencing nears, grappling with the potential consequences of his actions on his life and family.
