Sam Bankman-Fried was sentenced to 25 years in prison for a cryptocurrency fraud that unraveled with the collapse of FTX, once one of the world’s most popular digital currency exchange platforms. pic.twitter.com/EmwnT0ouPO
— The Associated Press (@AP) March 28, 2024
Here's a peek into the sentencing hearing that ended with Sam Bankman-Fried receiving 25 years in prison. I also discuss some of the shock at what is being perceived as a light sentence, and the amount of time SBF is likely to actually serve.https://t.co/QuVzkRtZbB
— Molly White (@molly0xFFF) March 29, 2024
Yeah, I too would’ve been happy to see him thrown under the jail, but twenty-something years is not nothing. By the time SBF is a free man, whole new realms of grift — I mean, exciting alternative financial ventures — will have been developed, and hopefully he will never again be able to cheat so many people with such impunity.
Just like the jury deliberations, Sam Bankman-Fried’s sentencing was brief. Commencing at 9:30, the sentence was delivered before noon.
The judge began the sentencing hearing by ruling on a few points of contention from the sentencing memorandums, after which he established Bankman-Fried’s numeric offense level.
The most substantial disagreement was on the topic of the loss amount. The government contended that the total loss to FTX’s customers and investors and to Alameda’s lenders was $10 billion, on the low end. The defense argued that the loss was zero. Many pages in each side’s sentencing memorandums were devoted to arguing over this.
The judge was quick to rule: “I reject entirely the defendant’s argument that there was no actual loss.” The claims that customers and creditors will be repaid is at this point purely speculative, as the bankruptcy proceedings are still underway. He added that while the success of some of Alameda’s investments, and the recent rise in cryptocurrency prices, is fortuitous for creditors, it does not make Bankman-Fried’s crimes any less severe…
When discussing the government’s proposed sentencing enhancement for obstruction of justice, Kaplan first referenced Bankman-Fried’s attempt at witness tampering in January 2023. Although that alone was enough to justify the enhancement, Kaplan also described three specific instances in which he determined Bankman-Fried had committed perjury while testifying:
1) Claiming that he did not know Alameda Research had spent FTX customer deposits until fall 2022
2) Claiming that he first learned of Alameda’s $8 billion liability to FTX in October 2022
3) Claiming that he did not know repaying Alameda’s loans in mid June 2022 would require Alameda to borrow from FTX…
Late Night Moderate Justice Open Thread: Sam Bankman-Fried Sentenced to 25 YearsPost + Comments (5)