NEW YORK — Sam Bankman-Fried’s lawyer said Tuesday that a recommended sentence of 100 years in prison for the FTX founder by an arm of the court is “grotesque” and “barbaric” and a sentence of a few years behind bars is appropriate for the cryptocurrency crimes that the California man still disputes.
In presentence arguments filed just minutes before a late Tuesday deadline in Manhattan federal court, attorney Marc Mukasey said a report by Probation officers improperly calculated federal sentencing guidelines to recommend a sentence just 10 years short of the maximum potential 110-year sentence.
A spokesperson for prosecutors, who will respond in court papers in mid-March, declined comment.
On March 28, Judge Lewis A. Kaplan will sentence the man prosecutors say cheated investors and customers of at least $10 billion in businesses he controlled from 2017 through 2022.
His FTX trading platform was perceived by some in the cryptocurrency industry as a pioneer before it collapsed into bankruptcy in November 2022, weeks before he was brought to the United States from the Bahamas for trial.
At a November trial, the 31-year-old man known for his casual clothing and wild hair, was convicted of fraud and conspiracy charges.
Mukasey wrote Tuesday that the Probation office miscalculated federal sentencing guidelines to justify its recommendation. A proper sentence, Mukasey said, would be based on guidelines that would call for between five years and 6 1/2 years in prison.
When Bankman-Fried’s charitable works and his commitment to others are considered, an appropriate sentence would return him “promptly to a productive role in society,” the lawyer said.
Mukasey said that the Probation office “recommends that the Court sentence Sam to 100 years in prison. That recommendation is grotesque.”
“Sam is a 31-year-old, first-time, non-violent offender, who was joined in the conduct at issue by at least four other culpable individuals, in a matter where victims are poised to recover — were always poised to recover—a hundred cents on the dollar,” Mukasey said.
He called on the judge to reject the “barbaric proposal.”
FTX was once the world’s second-largest crypto exchange and Bankman-Fried seemed to be flying high with the purchase of Super Bowl advertising and endorsement from celebrities including comedian Larry David and NFL superstar quarterback Tom Brady.
After his arrest, though, Bankman-Fried’s communications were found by the judge to be attempts to influence trial witnesses and he was jailed before trial.
A lawyer representing Sam Bankman-Fried, the founder of the popular cryptocurrency exchange FTX, has requested a judge to dismiss the recommended 100-year sentence that Bankman-Fried is facing. The request comes as a shock to many in the cryptocurrency community, as Bankman-Fried is widely regarded as a successful and respected figure in the industry.
The recommended sentence stems from allegations that Bankman-Fried violated securities laws by offering unregistered securities through his cryptocurrency exchange. The charges against him have caused a stir in the crypto world, with many questioning the validity of the accusations and the severity of the recommended sentence.
Bankman-Fried’s lawyer argues that the recommended sentence is excessive and disproportionate to the alleged crimes. They point out that Bankman-Fried has been cooperative with authorities and has not been involved in any other criminal activity. They also highlight his contributions to the cryptocurrency industry, including his efforts to promote transparency and compliance within the space.
The lawyer’s request to dismiss the recommended sentence is based on several legal arguments, including the lack of evidence supporting the charges against Bankman-Fried and the potential for a more lenient punishment. They are also seeking to have the case dismissed on procedural grounds, citing errors in the investigation and prosecution of the case.
The outcome of this request will have significant implications for both Bankman-Fried and the broader cryptocurrency industry. If the judge agrees to dismiss the recommended sentence, it could set a precedent for how similar cases are handled in the future. On the other hand, if the judge upholds the sentence, it could have a chilling effect on innovation and entrepreneurship in the crypto space.
Regardless of the outcome, this case serves as a reminder of the legal challenges facing individuals and companies operating in the cryptocurrency industry. As the industry continues to grow and evolve, it is crucial for all stakeholders to stay informed about regulatory requirements and to seek legal counsel when necessary. Only time will tell how this case will ultimately be resolved, but one thing is certain: it will have a lasting impact on the future of cryptocurrency regulation.
