Sam Bankman-Fried’s Attorney Vows to Appeal Conviction

TFD – Dive into the legal saga of Sam Bankman-Fried, as his attorney vows to appeal his conviction. Discover the implications of his federal prison sentence and the ongoing legal battles in the realm of white-collar fraud.

A Manhattan judge decided on Thursday that Sam Bankman-Fried must serve 25 years in federal prison for scamming investors and consumers in his defunct cryptocurrency exchange, FTX.

Judge Lewis Kaplan warned that there was a chance “that this man will be in a position to do something very bad in the future, and it’s not a trivial risk” prior to pronouncing the punishment.

Kaplan concurred with the prosecution’s assertion that Bankman-Fried’s financial offenses were motivated by his “desire to be a hugely, hugely politically influential person in this country.”

Even though Bankman-Fried’s 25-year sentence was almost half of what the prosecution had requested, it nonetheless places him at the top of the range for sentence lengths in well-known cases of white-collar fraud. Bernard Madoff, who oversaw a $20 billion Ponzi fraud, faces a 150-year prison term ahead of him. About 12 years into his sentence, he passed away. Elizabeth Holmes, the CEO and founder of Theranos, was given a sentence of slightly more than 11 years after being found guilty on four counts of cheating investors while she was in charge of the bankrupt blood-testing firm.

For what length of time will he serve?

In federal proceedings, there is no parole; nevertheless, Bankman-Fried might still be able to reduce his sentence by a number of years.

According to Mitchell Epner, a former federal prosecutor, “SBF may serve as little as 12.5 years, if he gets all of the jailhouse credit available to him,” CNN reported.

For good behavior, federal inmates can often receive up to 54 days of time credit year, which could lead to a 15% decrease. But since 2018, under the First Step Act, a prison reform law, nonviolent federal offenders can have their sentences reduced by up to 50%.

As a civil rights legislation, the First Step Act was designed to assist minority offenders who had committed nonviolent drug-trafficking felonies, according to Epner.

Epner continued, “It has proven to be a huge benefit for white-collar criminal defendants, who are already given much lower sentences… than drug-traffickers.”

Moreover, Jordan Estes, a partner at Kramer Levin and a former federal prosecutor, says that a court may decrease a person’s sentence for extraordinary and compelling grounds, most of which are medical.

“If the defendant has served a significant portion of their sentence, courts have been more willing to grant early release under this provision since the pandemic,” Estes stated.

Apart from the jail term, Kaplan also mandated the forfeiture of $11.02 billion.

The goal of the forfeiture is to be paid off gradually, and Bankman-Fried will probably have to give up all of his assets in addition to a small amount each month.

Epner stated, “The forfeiture will follow him for the rest of his life.” “It would require the great majority of his earnings upon his release from prison.”

But he noted that since there would be so many victims in this case, it would be “impractical” to make reparations.

Judge Lewis Kaplan stated that he would advise the Bureau of Prisons to place Bankman-Fried in a medium-security institution or any other facility with a lesser level of security that the bureau deems suitable. In order for Bankman-Fried’s family to visit him, he also mentioned that it should be as close to the San Francisco region as feasible.

Following their departure from the Manhattan courtroom on Thursday, Bankman-Fried’s parents, Joe Bankman and Barbara Fried, released the following statement: “We are heartbroken and will continue to fight for our son.”

The attorney for Bankman-Fried declared that they would keep appealing his conviction.