DOJ Recommends 40-50 Years Prison Sentence for Sam Bankman-Fried

The U.S. prosecutors have recommended a sentence of 40-50 years in prison for Sam Bankman-Fried, the founder and former CEO of FTX, following his conviction on fraud and conspiracy charges related to the collapse of the cryptocurrency exchange. The prosecutors accuse Bankman-Fried of lying to investors, sharing fake documents, and illegally donating millions of dollars to the political system. They argue that such a severe sentence is necessary to underscore the serious nature of the harm caused to thousands of victims and to prevent Bankman-Fried from committing fraud again in the future.

Additionally, the prosecutors are seeking a penalty of over $11 billion and forfeiture, which they consider to be a conservative sum given the magnitude of the offense. They have already seized more than a billion dollars, including funds from political contributions made by Bankman-Fried and other FTX executives during U.S. elections two years ago, which the prosecutors believe to be the largest-ever campaign finance offense.

The sentencing memo also includes testimony and allegations from witnesses at the trial, including claims that Bankman-Fried bribed foreign government officials and directed Alameda Research to take out a massive line of credit on FTX. Bankman-Fried was convicted on seven counts of fraud and conspiracy last November and is scheduled to be sentenced on March 28.

In response to the defense team's recommendation of a 6-year sentence, the prosecution called it "woefully inadequate" and criticized Bankman-Fried for not assisting with efforts to recover funds for FTX creditors, despite his claims that they are likely to recover a majority of their funds. The prosecution argues that Bankman-Fried's actions have been counterproductive to these efforts.

The sentencing memo also includes exhibits such as direct messages sent to Bankman-Fried by FTX customers and selected Google documents, which appear to detail options for addressing the bankruptcy situation and garnering sympathy for FTX's situation. The prosecution accuses Bankman-Fried of disregarding the law and ethical standards based on his own values and sense of superiority.