DStv Channel 403 Friday, 08 November 2024

Prosecutors urge 40-50 years for crypto fraudster Bankman-Fried

NEW YORK - US prosecutors have requested that a court sentence disgraced crypto mogul Sam Bankman-Fried to between 40 and 50 years imprisonment for massive fraud that cost customers $8-billion, court documents showed.

The founder and CEO of the FTX cryptocurrency exchange platform will face sentencing on March 28 after being found guilty in early November of seven counts including fraud, conspiracy and money laundering.

"A sentence of 40 to 50 years' imprisonment... is necessary to reflect the seriousness of the defendant's crimes," the prosecution's sentencing memorandum said. 

Bankman-Fried's defense team had reportedly called for a sentence of around six years.

Prosecutor Damian Williams said following the verdict that Bankman-Fried "perpetrated one of the biggest financial frauds in American history, a multibillion-dollar scheme designed to make him the king of crypto."

A graduate of the Massachusetts Institute of Technology (MIT) and a billionaire before the age of 30, Bankman-Fried conquered the crypto world at breakneck speed, turning FTX, a small start-up he co-founded in 2019, into the world's second-largest exchange platform.

But in November 2022, the FTX empire imploded, unable to cope with massive withdrawal requests from customers panicked to learn that some of the funds stored at the company had been committed to risky operations at Bankman-Fried's personal hedge fund, Alameda Research.

Some of his closest associates testified during the trial that he was key to all the decisions that saw $8-billion vanish from his FTX trading platform.

Bankman-Fried admitted during his trial he had made "mistakes" but denied ever trying to defraud anyone.

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