Disgraced FTX founder and convicted fraudster Sam Bankman-Fried has appealed his federal conviction and jail sentence, per a notice of appeal filed in the Southern District of New York (SDNY) court.
Bankman-Fried’s appeal comes after he was sentenced to 25 years in prison by U.S. District Court Judge Lewis Kaplan. The FTX founder was also ordered to repay $11 billion in forfeiture, after the Department of Justice successfully argued in court that he had siphoned more than $8 billion from the defunct crypto exchange to fund venture investments, celebrity sponsorships and his own lifestyle in the Bahamas.
In November, a jury found Bankman-Fried guilty of seven counts of fraud, money laundering, and conspiracy. While the charges could have seen him jailed for 110 years, the government argued for a sentence of between 40 and 50 years. Bankman-Fried’s own lawyers argued for a sentence of 6.5 years.
Between the trial and the sentencing, the former FTX CEO hired a new legal team.
Out of the gate, Bankman-Fried’s lawyers called the 100-year recommendation from the jury “grotesque.” During the sentencing, the disgraced crypto founder’s team argued that “a sentence of decades-long duration would end Sam’s ability to lead a meaningful life and contribute to the neediest in society.”
In the end, Judge Kaplan decided that the government’s sentencing request was “substantially greater than is necessary,” and recommended that Bankman-Fried serve out his sentence in a medium- or low-security prison, close to San Francisco so as to facilitate family visitation.
Legal experts told Decrypt that Bankman-Fried is likely to serve out at least 21.25 years in federal custody, after an automatic 15% sentence reduction was applied.
Kaplan said that the final sentencing reflected the fact that, “there is a risk that this man will be in position to do something very bad in the future. And it’s not a trivial risk at all.”
“There are serious consequences for defrauding customers and investors,” U.S. Attorney General Merrick Garland said in a statement following the sentencing. “Anyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice.”
Edited by Stacy Elliott.
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