Trial lawyers in the Bankman-Fried case are pushing for leniency for their client, being responsible for nearly $9 billion in consumer funds that vanished away. The latest pleas are his lawyers’ calls for judges to be light with Sam who awaits a 100-year sentence.
This cry for leniency is a debate the public is also taking a part in.
When the FTX scandal first hit in 2022, the crypto market lost $3.8 billion worth of value. This crypto exchange is now involved in one of the biggest fraud cases of U.S. history. Its owner was prematurely jailed before the company’s trial date, being guilty of tampering with witnesses.
What Is Sam Bankman-Fried’s Crime?
After two weeks of delegation, Sam Bankman-Fried was sentenced for life with his appeal now pending. The seven counts against him include conspiracy, fraud and money laundering.
“Grotesque and barbaric!”—pleaded Sam’s lawyers …
Bankman authorized the personal use of his consumers’ investment funds, depleting user accounts by sending money to “Alameda Research” that was forged to fudged the balances. At the end, a bank run after the scandal showed the FTX exchange being short over -$8 billion.
Investors lost all of their assets if they were held within the exchange.
Now the Felon’s Sentencing Emerges
As a listed felon, Sam is pleading for a shorter sentence and works a show of remorse. His lawyers argue that the crypto CEO has a plan to payout 90% of his exchange’s recovered assets. The pay out, if the court rules in favor, will be paid to those who lost funds. How much or how little is dependent on how much can be recovered before Sam’s sentence begins.
With bitcoin pushing higher, the value of FTX’s collectable assets could bail Bankman-Fried out of a longer sentence. As of late, reports suggest that FTX could recover $6.9 billion of the $8.7 billion lost. The assets to be collected are from diverse holdings, including real estate. One portfolio being liquidated includes Samuel’s properties in the Bahamas.
If he and his people liquidate enough recoverable assets, it might qualify for his legal team’s push for a 68-month max sentence. The five to six years he would serve in the case of an appeal is a far cry from the 100 he’s expected to start.
His Current Life In the “Pen”
We’ve picked up on Sam behind bars—at the Metropolitan Detention Center. The holding area is a Brooklyn, New York, landmark equipped for all security levels, giving it both the rudest and extremist criminals at large. Since it’s engineered for brief stays, it’s ideal for prisoners awaiting their ultimate sentencing. The conditions are like any other prison.
The 32-year-old is now a cited target, being a first-time offender with no criminal record among seasoned thieves. Bankman’s fate is unknown, but he might make some light of it still.
A few reports cover conversations with prison guards that Sam held in an attempt to gain favor, offering crypto advice to others. Only time will tell if the tactics fend him from inmate extortion. He’ll be back in court soon …
