Prosecutors Seek 40-50 Years Sentence for 'Crypto King' Bankman-Fried

  Cointelegraph

American prosecutors are demanding a prison term of 40 to 50 years for Sam Bankman-Fried, the founder of collapsed cryptocurrency exchange FTX. Bankman-Fried has already been found guilty of fraud and conspiracy in one of the largest fraud cases ever.

The Crime

Bankman-Fried, 31, was accused of transferring FTX customer funds to his investment fund, Alameda Research. From this fund, he made high-risk investments. When customers couldn’t access their money, FTX went bankrupt.

The prosecutors accused Bankman-Fried of stealing an equivalent of €7.3 billion from his customers. In early November 2023, a jury found Bankman-Fried guilty of fraud and conspiracy. The sentence will be determined on March 28th. The maximum sentence for fraud is 110 years.

Bankman-Fried’s Defense

Bankman-Fried denies stealing the billions. However, the former executive admits to making mistakes leading up to FTX’s bankruptcy. Bankman-Fried believed it was permissible for Alameda to ‘borrow’ money from FTX. He also stated he didn’t realize the extent of the debts until both companies went bankrupt. As a result, Bankman-Fried has pleaded for a reduced sentence. His lawyers argued in court that a prison sentence of around six years would be “appropriate”.