In a sentencing memo, Bankman Freed’s attorneys asked Judge Lewis A. Kaplan to impose a sentence of five to six years in prison. He faces up to 100 years in prison under federal sentencing guidelines, which would be “grotesque,” attorney Mark Mukasey wrote.wonderfulHe is a complex, human figure with a history of philanthropy and altruistic ideals. Mukasey also cited Bankman-Fried’s autism as a reason for leniency.
Mukasey declined to take questions from The Washington Post on Friday, saying he would respond to the government memo on Monday.
Prosecutors rejected Bankman Fried’s claims of good faith and instead focused on the victims who lost their life savings. During the trial, they argued their case was a simple fraud disguised as a breakthrough financial innovation, alleging that Bankman Freed misappropriated customers’ funds to buy luxury real estate, investments and “dark money.” He claimed that he spent lavishly on political donations.
“With all the advantages brought by a comfortable upbringing, an MIT education, a prestigious start to a career in finance, and a worthy idea for a new business, Bankman Fried is a rewarding and productive “He could have pursued an altruistic life,” prosecutors wrote in the sentencing submission. “But rather, his life in recent years has been one of unparalleled greed and arrogance. Ambition and rationalization. And taking risks and repeatedly gambling with other people’s money.”
What’s more, Mr. Bankman Freed is unrepentant. “Even after FTX’s bankruptcy and subsequent arrest, Bankman Freed avoided responsibility, shifted blame to market events and other individuals, attempted to tamper with witnesses, and repeatedly lied under oath. .”
Bankman Fried was sentenced in November 2023, exactly one year after CoinDesk went public. article The report highlights an unusually close relationship between Bankman Fried’s two companies, FTX and hedge fund Alameda Research, and sets out a chain of events that led to the downfall of one of the crypto world’s most prominent figures. caused it.
During the trial, prosecutors traced Bankman Freed’s theft of customer funds back to 2021, when he accused then Alameda CEO Caroline Ellison of funds held by rival cryptocurrency exchange Binance. It ordered it to spend $2 billion to buy back FTX stock. According to her testimony, Ellison told her that the company only had half of that amount on hand and had to borrow the rest from FTX customers. Bankman Freed told her to continue.
Prosecutors said Ellison again used client funds to invest in ventures that fall, despite warnings that the move could be disastrous if the cryptocurrency market slumped. said it has provided $3 billion in funding.
By November 2022, FTX filed for bankruptcy and Bankman Fried stepped down as CEO.Earlier this year, Reuters reported that FTX moving towards liquidation It should be fully repaid to the customer.
Eli Tan and Tory Newmyer contributed to this report.
