U.S. Wants FTX's Ex-CEO Sam Bankman-Fried in Jail for Up to 50 Years

The U.S. Department of Justice (DOJ) proposes that Sam Bankman-Fried, FTX's former head, be imprisoned for 40-50 years. They also suggest he should pay fines and give up assets totaling $11 billion. Bankman-Fried, who led the cryptocurrency exchange FTX, was found guilty on seven charges of fraud and conspiracy last November.

Prosecutors argue that Bankman-Fried's actions, which included deceiving investors, distributing counterfeit documents, and unlawfully funding political campaigns with millions, warrant a substantial prison term. This punishment is intended to reflect the gravity of his crimes, deter him from future fraud, and serve as a warning to others against financial wrongdoings. The suggested $11 billion in fines and forfeitures is considered a modest estimate by prosecutors.

The government has already recovered over $1 billion and aims to reclaim funds Bankman-Fried used for political contributions, described as potentially the biggest campaign finance violation ever. More than 250 political candidates have returned over $3 million in donations.

Drawing parallels with other major fraud cases, such as Bernie Madoff, who received a 150-year sentence for a $13 billion fraud, the DOJ outlines the scale of Bankman-Fried's offenses. They plan to confiscate assets from various sources, including bank and Binance accounts, and the sale of Robinhood shares.

The DOJ's filing emphasizes that Bankman-Fried knowingly engaged in illegal activities but acted above the law. Testimonies from his close associates, including allegations of bribing officials and misusing FTX resources, support this claim. Bankman-Fried is slated for sentencing on March 28.

While his defense suggests a six-year sentence, prosecutors find this inadequate. They criticize Bankman-Fried's lack of cooperation in compensating FTX creditors, challenging claims that creditors will likely regain most of their funds.