Sam Bankman-Fried, the founder of FTX, is awaiting his sentencing this week after being convicted on two fraud charges and five conspiracy charges last year. The sentencing, to be handed down by Judge Lewis Kaplan, could potentially see Bankman-Fried facing decades in prison. The Presentence Investigation Report, compiled by a probation officer, recommends a -year sentence, while Bankman-Fried’s attorneys have suggested to months. The Department of Justice, on the other hand, has urged for a -year sentence, a proposal that the defense has called disturbing and medieval.
Bankman-Fried is unlikely to face anywhere near as long as years, let alone a century in prison. Legal experts have estimated that he might spend around two decades in prison if convicted. The defense and prosecution are at odds over the appropriate sentence, with Bankman-Fried’s team almost certain to appeal the guilty verdict handed down nearly five months ago.
The presentence report, which is not a public document, provides a summary of Bankman-Fried’s background, the case, and how the facts fit into sentencing guidelines. Factors that will be taken into consideration by Judge Kaplan include the defendant’s history, background, upbringing, education, physical and mental condition, the facts of the case, any harm to potential victims, and the message the sentence might send to others who could commit similar crimes.
The defense has argued that the presentence report’s recommended sentence is based on a mechanical calculation and is incorrect, pointing to the lack of actual losses by the victims based on FTX’s bankruptcy estate estimation that creditors may be made whole or nearly whole. However, the prosecution has pushed back against this characterization, citing FTX creditors who have suffered hardships due to not being able to access their funds for the last year and a half.
The judge will take into account character and victim statements provided by the parties, as well as impact statements and letters in support. The goal of the sentencing will be to determine a punishment that fits both the crime and the defendant, as well as to serve as a general and specific deterrent to prevent future offenses. Bankman-Fried and his team will be anxiously awaiting the outcome of the sentencing as they prepare for a potential appeal.