United States prosecutors have recommended a maximum sentence of 50 years in prison for former FTX CEO Sam Bankman-Fried, who was convicted on fraud and money laundering charges in November 2023. This sentencing proposal has sparked controversy, with Bankman-Fried’s lawyers condemning it as reminiscent of a “medieval view of punishment.”
In a response to the government’s sentencing proposal, Bankman-Fried’s legal team, Marc Mukasey and Torrey Young, penned a letter to Judge Lewis Kaplan, asserting that the suggested sentence misrepresents the severity of their client’s crimes. They argued that the proposed term would essentially equate to a “death-in-prison” sentence, which they deemed unjust.
Sam Bankman-Fried’s lawyers counter allegations of high risk
Mukasey and Young put forth several arguments in favor of a reduced sentence for Bankman-Fried. They contended that no actual losses occurred as a result of his actions, as all customers and lenders affected would be compensated through bankruptcy proceedings, leaving assets intact within the estate. Additionally, they disputed the prosecution’s portrayal of Bankman-Fried as solely motivated by personal gain, citing his philanthropic endeavors and purportedly modest lifestyle.
The defense team also challenged the assertion that Bankman-Fried posed a high risk of re-offending, citing research indicating low recidivism rates among white-collar, educated offenders without prior records. Moreover, they accused the prosecution of making unsupported claims, including allegations that Bankman-Fried evaded responsibility and misrepresented sentencing data for comparable fraud cases.
Appeal for compassion and fairness
Mukasey and Young emphasized the profound personal and professional losses Bankman-Fried had already endured, asserting that he had “nearly lost everyone and everything.” They urged Judge Kaplan to consider a reduced sentence of approximately five to six and a half years, arguing that such leniency would align with the goal of allowing Bankman-Fried to “return to liberty.”
The defense lawyers underscored the unprecedented nature of the proposed sentence, noting that they had not identified any federal defendant convicted of a non-violent offense who had served such a lengthy term and been subsequently released. They concluded their appeal by urging the court to refrain from “crushing” Bankman-Fried with an excessive punishment.
The sentencing hearing for Sam Bankman-Fried is scheduled for a later date, during which Judge Kaplan will consider the arguments presented by both the prosecution and the defense before reaching a decision.
