Former FTX founder Sam Bankman-Fried (SBF) is set to be sentenced today at 13:30 (UTC), a highly anticipated event that will take place at a federal courthouse in Manhattan. This is the same venue where SBF was found guilty of all seven criminal charges last year, as reported by CNBC journalist MacKenzie Sigalos.
The collapse of crypto exchange FTX, for which SBF played a significant role, has led to the prosecutor seeking a prison term of up to 50 years. In fact, SBF faces a maximum sentence of over 100 years. Judge Lewis Kaplan has been deliberating on the appropriate punishment for the former FTX executive since his conviction in November 2023.
Prosecutors have recently submitted a letter from one of FTX’s victims to Judge Kaplan in an attempt to influence the sentencing. The victim, who remains anonymous, claims to have lost $4 million, which represented 30 years of savings, when FTX filed for bankruptcy in 2022. According to the victim, the collapse of FTX and its sister hedge fund Alameda Research not only resulted in financial losses but also caused immense personal distress and a loss of will to live.
It is worth noting that prosecutors have employed a similar tactic in the past, using victim testimonies to convince the jury that SBF had stolen at least $8 billion.
In contrast, the defense counsel is arguing for a maximum prison sentence of no more than six-and-a-half years for SBF. Their argument is based on the fact that FTX’s customers stand a good chance of recovering most, if not all, of the money they lost when the exchange collapsed. This assurance was provided by the legal team representing the bankruptcy estate, stating that FTX is fully committed to reimbursing customers and creditors with valid claims. Furthermore, the recent surge in the prices of crypto assets held by FTX, such as Solana (SOL), has increased the likelihood of full repayment. SOL, for instance, has skyrocketed from $9 to $183 since the FTX implosion.
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