FTX creditors paint stark picture of despair as Sam Bankman-Fried's sentencing looms
Quick Take
- The DOJ filed dozens of victim impact statements ahead of Bankman-Fried’s sentencing scheduled on March 28.
- One victim wrote that the “emotional toll” from the FTX collapse has been “overwhelming.”
The U.S. Department of Justice on Monday filed dozens of victim impact statements in Sam Bankman-Fried’s criminal case ahead of the failed FTX exchange founder’s planned sentencing next week.
The letters, dated last week, were written by FTX creditors from around the world to express their frustration and the impact of FTX’s bankruptcy on their lives.
“The sudden collapse of the company has shattered my sense of financial security and stability,” one letter wrote. “Furthermore, the emotional toll of this ordeal has been overwhelming.”
Another victim statement said: “In 2022, at the age of 24, I lost my entire life savings, which amounted to over $20,000. I had entrusted my savings to FTX.com not to buy or sell crypto, but to take advantage of the interest-bearing savings account offered by the platform. The financial loss has been devastating, especially when coupled with high inflation and an increase in the cost of living.”
Upcoming sentencing
Bankman-Fried, set to be sentenced on March 28, was found guilty in November on two substantive crimes, wire fraud on the lenders and customers of FTX, and five conspiracy criminal counts, which include conspiracy to commit the wire fraud charges along with commodities fraud, securities fraud, and money laundering.
Prosecutors have asked the courts to imprison Bankman-Fried for 40 to 50 years, according to a memo filed last week.
"With all the advantages conferred by a comfortable upbringing, an MIT education, a prestigious start to his career in finance, and a worthy idea for a startup business, Bankman-Fried could have pursued the rewarding, productive, and altruistic life he has sketched out in his sentencing submission," prosecutors said.
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