Federal prosecutors asked a New York judge on Friday to sentence FTX founder Sam Bankman-Fried to between 40 and 50 years in prison for cryptocurrency crimes they described as a "historic fraud."
Prosecutors made the request as they submitted their presentence recommendations to a federal judge who will sentence the man who at one time dazzled the cryptocurrency world with his promotional skills, including his access to famous people willing to promote his businesses.
Bankman-Fried, 32, is scheduled to be sentenced in Manhattan federal court on March 28 following his November conviction on fraud and conspiracy charges.
Prosecutors say he cost customers and investors in FTX and its related companies at least $10 billion from 2017 through 2022.
He was extradited to the United States in December 2022 from the Bahamas after his companies collapsed a month earlier. Originally permitted to remain at home with his parents in Palo Alto, California, he was jailed last year weeks before his trial after Judge Lewis A. Kaplan concluded that he had tried to tamper with trial witnesses.
In their presentence submission, prosecutors described Bankman-Fried's crimes as "one of the largest financial frauds in history, and what is likely the largest fraud in the last decade."
"The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence," they wrote.
Prosecutors invoke Bankman-Fried's political donations, bribes
They said his "unlawful political donations to over 300 politicians and political action groups, amounting to in excess of $100 million, is believed to be the largest-ever campaign finance offense."
And they said his $150 million in bribes to Chinese government officials was one of the single largest by an individual.
"Even following FTX's bankruptcy and his subsequent arrest, Bankman-Fried shirked responsibility, deflected blame to market events and other individuals, attempted to tamper with witnesses, and lied repeatedly under oath," prosecutors said, citing his testimony at trial.
FTX's bankruptcy in November of 2022 cast a cloud over the entire crypto industry, as the sudden collapse of other major industry players vaporized billions in client wealth.
"So many people believed in him, he was a genius," Natalie Tien, a former FTX employee, told CBS News last year.
Tien said attending the trial of her former boss was cathartic after experiencing months of confusion and depression when his empire collapsed and she too "lost a lot of money."
Bankman-Fried's lawyers push back against harsh sentence recommendation
In a recent development, Bankman-Fried's legal team has criticized a probation office's suggestion that their client be sentenced to 100 years in prison, deeming such a lengthy term as "grotesque" and "barbaric."
Instead, they have advocated for a much shorter sentence, proposing that Bankman-Fried serve only a few years behind bars based on federal sentencing guidelines, which recommend a term of five to 6 1/2 years in prison.
Highlighting their client's medical conditions, including autism, and his aspirations to make positive contributions to society through his now-defunct cryptocurrency exchange, his lawyers made their case, as reported by the Wall Street Journal.
"Sam is not the 'evil genius' portrayed in the media or the greedy antagonist depicted during the trial," his legal team asserted. "He is a 31-year-old, first-time, nonviolent offender, who engaged in the conduct in question alongside at least four other individuals responsible, in a situation where the victims were always expected to recover one hundred percent of their losses."
