(MENAFN) Former crypto mogul Sam Bankman-Fried faces the grim possibility of spending decades behind bars as he awaits sentencing on Thursday for his involvement in the 2022 collapse of FTX, once revered as one of the world's leading platforms for trading digital currencies.
At 32 years old, Bankman-Fried's trajectory has taken a stark downturn since his conviction in November on charges of fraud and conspiracy. This stands in stark contrast to just a year prior when he and his companies appeared to be riding a wave of success, marked by a Super Bowl advertisement and endorsements from prominent figures such as quarterback Tom Brady and comedian Larry David.
A jury found Bankman-Fried guilty of unlawfully diverting funds from FTX depositors to fund his personal expenses, which reportedly included acquiring luxury properties in the Caribbean, purported bribes to Chinese officials, and the use of private planes.
Prosecutors have recommended a harsh prison sentence ranging from 40 to 50 years, underscoring the severity of the charges against him.
“The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence,” prosecutors informed Judge Lewis A. Kaplan in a court filing.
Bankman-Fried's legal team, as well as his friends and family, have appealed for leniency in sentencing, asserting that he poses a low risk of reoffending. They emphasize that FTX's investors have largely recouped their losses, disputing claims to the contrary made by bankruptcy lawyers, FTX, and its creditors.
“Mr. Bankman-Fried continues to live a life of delusion,” John Ray, the CEO of FTX who has been overseeing the restructuring efforts of the bankrupt company, penned the statement. “The ‘business’ he left on November 11, 2022 was neither solvent nor safe.”
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