Former FTX founder Sam Bankman-Fried (SBF) is set to be sentenced today at 13:30 (UTC), a highly anticipated event in the crypto world. The sentencing proceedings will take place at a federal courthouse in Manhattan, the same location where SBF was previously found guilty of all seven criminal charges.
Prosecutors are seeking a prison term of up to 50 years for SBF, who played a significant role in the collapse of crypto exchange FTX. If given the maximum sentence, SBF could face over 100 years in jail. Judge Lewis Kaplan has been deliberating on the appropriate punishment since November 2023, when SBF was convicted.
In an effort to sway the judge in their favor, prosecutors recently presented a letter from one of FTX’s victims, whose identity remains undisclosed. The victim claimed to have lost $4 million, representing 30 years of savings, after FTX filed for bankruptcy in 2022. This individual argued that the collapse of FTX and its sister hedge fund Alameda Research caused not only financial losses but also a significant impact on their overall well-being and will to live.
It is worth noting that this tactic of presenting victim stories was previously used by prosecutors to convince the jury that SBF had stolen at least $8 billion.
On the other hand, the defense team is advocating for a maximum sentence of six-and-a-half years for SBF. They argue that FTX’s customers would be able to recover most, if not all, of their lost funds due to the exchange’s commitment to reimburse customers and creditors with valid claims. The defense team highlighted the recent surge in the value of crypto assets owned by FTX, such as Solana (SOL), which has seen a significant increase in price from $9 to $183.
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