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FTX Bankruptcy: How Sam Bankman Fried’s Lawyers Want to Avoid Him from Life Imprisonment

Sam Bankman Fried, the former CEO of the collapsed FTX empire, may face a life sentence. His defense strategy revolves around investors’ potential recovery, but an exemplary sentence is anticipated. Since the FTX empire collapsed, it was the end of 2022, Sam Bankman Fried has always declared himself sorry for the pain he caused and not guilty.



Sam Bankman

The former CEO of the bankrupt exchange faces up to 115 years in prison. Does Sam Bankman legal team have a strategy for seeking clemency?

Sam Bankman Fried ‘s new lawyer, Marc Mukasey (former lawyer of former US president Trump), has asked for a lenient sentence for his client , which does not go beyond six and a half years in prison. We are talking about the former CEO of FTX , an exchange that ended up at the center of one of the biggest crypto scams of recent years.

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Why is Sam Bankman Fried in prison?

Found guilty by a jury on all charges (including fraud and conspiracy) at the end of 2023, the former star of the American and global fintech scene faces up to 115 years in prison . That is, life imprisonment .

A few months ago he was found guilty of stealing $8 billion from people who had deposited their money on the platform of FTX , a company that ended up bankrupt. The sentence should arrive at the end of March, but Sam Bankman Fried ‘s lawyer has asked the judge that the prison years be reduced, and by a lot.

What is the risk?

As we read on Reuters, Fried’s defense strategy would be based on the fact that most investors would have recovered a good part of the lost sums. As we read in the New York Times , the sentence, expected in the next few weeks, is likely to be exemplary, with a life sentence for the 31-year-old, currently detained in a penitentiary in Brooklyn .

Since the FTX empire collapsed, it was the end of 2022, Sam Bankman Fried has always declared himself sorry for the pain he caused and not guilty. The FTX crisis has long been defined as one of the most sensational scams of recent years. In recent days, the photo of the former CEO in the penitentiary has circulated on X, an image immediately devoured by the web to produce memes.


(Featured image by Sajad Nori via Unsplash)

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First published in StartupItalia. A third-party contributor translated and adapted the articles from the originals. In case of discrepancy, the originals will prevail.

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Sharon Harris is a feminist and a part-time nomad. She reports about businesses primarily involved in tech, CBD, and crypto. She started her career as a product manager at a Silicon Valley startup but now enjoys a new life as a personal finance geek and writer. Her primary aim is to provide readers with a new perspective on the overlapping world of finance and technology.