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FTX founder seeks reduced sentence of under 6.5 years

source-logo  forkast.news 28 February 2024 21:51, UTC

Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, is seeking a reduced prison sentence of 63 to 78 months.

The defense argues that the US$8 billion shortfall FTX encountered upon declaring bankruptcy resulted from a spike in client withdrawals impacting liquid assets, rather than any direct financial injury to customers, creditors, or investors.

They claim that if FTX had been able to resume withdrawals after selling assets, there would have been no customer losses.

Bankman-Fried has reportedly been giving cryptocurrency investment tips to correctional officers at the Brooklyn Metropolitan Detention Center, the New York Times reported.

Bankman-Fried was convicted on multiple counts of fraud and money laundering and is scheduled for sentencing on March 28.