In a bid for leniency, Sam Bankman-Fried (SBF), the founder of the collapsed cryptocurrency exchange FTX, seeks less than 7 years in jail, citing specific reasons for the financial debacle. Bankman-Fried’s defense argues that FTX’s $8 billion shortfall, leading to bankruptcy, was a consequence of a surge in client withdrawals impacting liquid assets. They assert that customers, creditors, and investors did not directly suffer financial harm. According to the defense, had FTX been able to resume withdrawals after selling assets, there would have been no customer losses. This assertion challenges the notion of a direct financial injury to those involved.
Defence Calls for 5¼ to 6½ Years, Citing “Neurodiversity” and Altruism
In a recent court filing, Sam Bankman-Fried(SBF), co-founder of the FTX Cryptocurrency Derivatives Exchange, seeks less than 7 years in jail for his involvement in a significant financial fraud at FTX and its related hedge fund. The defense team, highlighting Bankman-Fried’s “neurodiversity,” selflessness, and kindness, is pushing for a more lenient punishment than the 100 years recommended by a presentence investigation report.
Bankman-Fried’s lawyers strongly dispute the allegations, presenting a different side of the accused. They argue against the portrayal of him as a “sociopath” and emphasize his remorse for the damage caused to friends, family, partners, and causes he cared deeply about.
Family Pleads for Mercy
The filing includes a letter from Bankman-Fried’s mother, Barbara Fried, expressing her son’s deep regret for the collapse of FTX. She mentions that it haunts him daily, revealing the emotional toll it has taken on him.
The defense team attacks the recommended 100-year sentence as “grotesque” and urges the court to reject the proposal. They challenge the calculation of the $10 billion loss suffered by FTX and Alameda Research customers, claiming the most reasonable estimate of loss is zero.
The filing delves into Bankman-Fried’s personal history, describing him as a shy child who struggled socially. It discloses his diagnosis of anhedonic depression in college, detailing his experiences with negative emotions and his use of antidepressant medication.
“Neurodiversity” as a Consideration
While not explicitly stating Bankman-Fried’s position on the autism spectrum, the filing mentions his “neurodiversity” multiple times, highlighting it as a fundamental aspect of his identity. The defence argues that his condition makes him uniquely vulnerable in a prison setting, emphasizing the increased risk of harm for individuals with Autism Spectrum Disorder (ASD).
Bankman-Fried’s lawyers draw a parallel with Michael Milken, the “junk bond king,” who received a 10-year sentence for fraud in the 1980s but served only two years. They advocate for a similar second chance for Bankman-Fried, emphasizing his commitment to charitable works and effective altruism.
As Bankman-Fried awaits sentencing on March 28, the Manhattan U.S. attorney’s office, which prosecuted the case, is expected to recommend a stiffer sentence than what the defense has proposed. The case has been described as one of the biggest financial frauds in American history, with federal prosecutors accusing Bankman-Fried of lying, cheating, and stealing.
Reports suggest that Bankman-Fried has been providing cryptocurrency investment tips to correctional officers at the Brooklyn Metropolitan Detention Center, adding a unique dimension to his time in custody. Bankman-Fried, convicted on multiple counts of fraud and money laundering, is slated for sentencing on March 28. The case has captured attention due to the significant impact of FTX’s collapse and the subsequent legal proceedings.
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