The officials from the US Department of Justice (DOJ) boldly filed for the sentencing memorandum of the embattled crypto investor Sam Bankman Fried. The memorandum was presented before Judge Lewis Kaplan of the Southern District Court on March 16. 

A review of the filing demonstrated that the ex-official of the collapsed FTX will be behind bars for 40 to 50 years. Citing the financial losses caused by the crashing down of FTX, the prosecutor claimed that along with the jail sentence, SBF might be required to settle $11 billion in court fines. 

DOJ Files SBF Sentencing Report

In November 2022, SBF was charged with seven fraud and conspiracy charges linked to the collapse of FTX. At that time the law enforcers alleged that SBF made unlawful political donations and attempted to bribe the Chinese authority. 

The probing team blamed Bankman for misusing company money and violating the banking rules. Also, the court document indicated that SBF used the company funds to finance his lavish lifestyle. 

A statement from the US attorney Damian Williams demonstrated it was important for the court to impose criminal charges corresponding to crimes committed by SBF. The executive expressed pessimism that Bankman-Fried would ever work in the finance department.

However, if SBF happens to work under the finance department, Williams expects the disgraced crypto investor will lose all the returns generated from unlawful activities. Based on the complexity of the matter, Williams argued that the SBF should serve 40 to 50 years imprisonment.

DOJ Calls for Life Sentencing of Former FTX Boss

The executive complained that SBF’s conduct was willful. Williams revisited the performance of the now defunct crypto exchange FTX and noted that SBF occasionally violated the rule of law. Despite deeply comprehending the existing law, Williams complained that Bankman-Fried disrespected the rule of law. 

The official regretted that despite the damages caused by the collapse of FTX, Bankman has not shown any remorsefulness in his recent arraigment. He noted that SBF has not admitted that whatever he did to the crypto community was wrong.

After reviewing the SBF career and his early childhood, the prosecutors noted that his comfortable upbringing and thriving career in finance enabled Bankman Fried to steer his life in a direction that brought prosperity. The prosecutors observed that in his previous role, Bankman Fried engaged in risky tasks such as gambling customers’ funds to maximize company profits. 

The official assumed that SBF understood what was illegal and unethical while running FTX. He noted that SBF led the FTX based on his values and superiority. In his statement, Williams argued that SBF criminal accounts call for a life sentence for a period not exceeding 100 years. 

Analyzing the Severity of SBF Case

On the contrary, the DOJ argued that SBF sentencing should be based on the crime’s nature and the case’s severity. Williams described SBF crime as serious and long-running, resulting in the loss of billions of dollars. 

He condemned Bankman-Fried’s unlawful action that exposed tens of thousands of customers to financial losses. The official emphasized the emotional trauma caused by the crashing down of FTX subjects Bankman-Fried to sentencing exceeding 40 years. 

The prosecutors argued that 40 to 50 years imprisonment would allow SBF to return to liberty. Depending on the seriousness of the case, the DOJ expects Bankman Fried to reform and shun his deceitful ways. 

However, the DOJ underlined that the SBF sentencing will require several enhancements based on the seriousness of the crime. Having ranked the collapse of FTX among the world’s largest financial crimes, the DOJ compared SBF sentencing to the Bernie Madoff criminal charges. 

In 2009, the US law charged Madoff for committing 11 criminal accounts while running one of the largest Ponzi schemes. Reflecting on the charges facing SBF, the DOJ regretted that the disgraced investors led the FTX and the affiliate company Alameda’s research to misuse customer fund equating to multi-billion dollars.

The DOJ analysis mirrors a similar observation made by the bankruptcy lawyers in recent court proceedings. The lawyers argued that FTX contemplated refunding the customers using the remaining crypto assets.

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