FTX founder SBF’s sentencing is imminent on 3/28, and the restructuring team estimates that FTX will be able to compensate all creditors. This has led to discussions on whether SBF will receive a lenient sentence or even make a comeback. CoinDesk interviewed lawyer Jordan Estes, who believes that the situation is not so simple.
Under the condition of full compensation, will SBF “make a comeback with a light sentence”?
Is there a chance for a minimum of 24 months?
SBF will not be sentenced to 115 years
There will still be debates in court
SBF was convicted of fraud in November 2023, and the sentencing result will be announced on 3/28 this year. Lawyer Jordan Estes believes that the bull market in cryptocurrencies will have an impact on the sentencing result, as the compensation situation can be considered during sentencing. According to the sentencing guidelines, for low losses, the recommended range is 24-30 months, while high losses may result in more than 20 years or life imprisonment.
According to the federal sentencing guidelines, SBF was initially charged with wire fraud, conspiracy to commit wire fraud, and money laundering. If convicted on all charges, the maximum sentence could be 20 years imprisonment, while charges of commodity fraud, securities fraud, and conspiracy to defraud campaign funds could result in a maximum sentence of five years. SBF initially faced eight charges (one of which was later dropped), and the maximum possible sentence could be 115 years imprisonment.
However, lawyer Martin Auerbach believes that the punishment for these charges will be concurrent, rather than consecutive, and since these charges are all based on specific themes, the judge will focus on the core behavior during the trial. In summary, the final result may not be the exaggerated figure imagined by the public.
Lawyer Jordan Estes believes that even though FTX has fully compensated, it does not mean that SBF has a high chance of receiving a lenient sentence.
Lawyer Jordan Estes expects there to be fierce controversy during the sentencing, and SBF’s defense may argue that customers and creditors have already received compensation, even at zero losses.
However, according to the sentencing guidelines, restitution acts that can help the defendant only apply to situations “prior to the discovery of the crime.” Since FTX’s restitution occurred long after the occurrence of the criminal acts, it does not meet this standard.
Using the case of Bernie Madoff as an example, the bankruptcy trustee also recovered a large amount of stolen funds but it did not reduce his 150-year prison sentence.
SBF, sentencing, imprisonment