FTX's Bankman-Fried is 'deeply sorry' for $8b fraud, pushes for shorter sentence

FTX’s Bankman-Fried seeks mercy, apologizes for $8 billion fraud, and implores the judge to reject the recommended 100-year jail term.

Sam Bankman-Fried, the disgraced founder of the FTX crypto exchange, is trying to get a shorter prison sentence after he was convicted of fraud and is now facing more than 100 years in prison.

On Feb. 27, Bankman-Fried’s lawyers filed a legal memo in U.S. District Court in Manhattan, requesting a prison term between 5.25 to 6.5 years, emphasizing that despite the collapse of FTX, the exchange’s clients were made whole, as reported by The New York Times. As per the memo, Bankman-Fried is “deeply, deeply sorry” for “the pain he caused over the last two years.” However, federal prosecutors are yet to outline their sentencing recommendation on Mar. 15, while the sentencing itself is due Mar. 28 at 9:30 a.m. ET.

Despite the $8 billion fraud, Bankman-Fried’s family and friends, including law professors, are rallying support, arguing that FTX had enough resources to compensate clients, questioning the law firm Sullivan & Cromwell’s role as it “may have distorted the criminal justice process,” the report says.

In November 2023, a jury unanimously convicted the FTX founder on all seven criminal charges. He is facing potential imprisonment of up to 120 years for seven counts of wire fraud, embezzlement, and criminal conspiracy.

FTX and Alameda Research declared bankruptcy in November 2022 as the crisis unfolded. As crypto.news reported, the bankruptcy filings revealed a chaotic and financially unsound environment within FTX, with court documents suggesting that the company owed over $3 billion to its top 50 creditors.