50 Years Prison for This Fraudster?

(StraightShooterNews.com) – In a groundbreaking move seeking accountability for a huge white-collar crime, U.S. federal prosecutors have proposed that the mind behind FTX face a sentence ranging from 40 to 50 years in prison.

Former CEO Sam Bankman-Fried was found guilty on various charges of fraud and conspiracy linked to the downfall of FTX, previously among the world’s leading cryptocurrency exchanges.

The verdict revealed Bankman-Fried deceived investors, forged documents and funneled millions in illicit political donations, which demanded a significant prison sentence, asset forfeiture and a staggering financial penalty exceeding $11 billion, as the Southern District of New York’s Department of Justice recommended in a recent sentencing memorandum.

The prosecutors emphasized Bankman-Fried’s grave actions and urged a punishment that reflects the scale of the deception that affected countless individuals. The punishment would also serve to deter future fraudulent acts by the defendant and point to potential financial wrongdoers the severe consequences if they carry out similar schemes.

Describing the $11 billion judgment as conservative, the memo acknowledges that a billion-plus dollars have already been seized. Prosecutors also noted Bankman-Fried’s and FTX executives’ unprecedented political contributions during the U.S. elections two years before, which they labeled “the largest-ever campaign finance offense,” with over $3 million returned by 251 candidates to date.

The prosecution’s narrative underscores that Bankman-Fried was aware of his unlawful activities despite behaving as though laws did not apply to him. They drew evidence from trial testimonies and allegations, including bribery of foreign officials as testified by former CEO of Alameda Research Caroline Ellison and unauthorized financial maneuvers as outlined by former Chief Technology Officer Gary Wang.

Bankman-Fried was found guilty on seven counts of fraud and conspiracy last November and awaits sentencing on March 28. His legal representation suggested a mere 6-year term, which the prosecution deemed completely insufficient in their filing.

The memo also compares the case to other high-profile financial crimes, including Bernie Madoff’s $13 billion fraud, which resulted in a 150-year sentence, to offer a benchmark for significant financial crimes.

The forfeiture proposal outlines the sources from which the funds would be recovered: seized bank deposits, Binance accounts and proceeds from Robinhood shares sales.

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