Nikolas Sargeant
Since his conviction last year, Sam Bankman-Fried, the founder of FTX crypto firm, has taken strategic steps to navigate the legal aftermath. From a Brooklyn federal detention center, the 31-year-old entrepreneur, once celebrated in the renegade crypto industry, is determined to appeal his conviction and secure a more favorable sentence. In a recent legal memo, his lawyers advocated for a prison term between 5.25 and 6.5 years, emphasizing Bankman-Fried's remorse for the fallout of FTX's collapse.
Bankman-Fried's defense team, led by prominent lawyer Marc Mukasey, known for his courtroom flair, is part of a comprehensive strategy orchestrated by the mogul's family and friends. His parents, Stanford University law professors Joe Bankman and Barbara Fried, actively support the defense, rallying former FTX employees and law professors to vouch for their son's character.
The legal battle extends beyond the courtroom, with the defense countering a potential 100-year sentence recommendation from a probation officer. Even if the judge opts for a lesser sentence, Bankman-Fried faces the prospect of decades behind bars. The defense argues that the punishment would be excessively harsh, given the entrepreneur's age.
Bankman-Fried, convicted of misappropriating $8 billion from FTX's customers, maintains his innocence and has recently replaced his trial lawyers. Alongside Mukasey, Alexandra Shapiro from Shapiro Arato Bach is poised to handle the appeal after the sentencing. The defense presents Bankman-Fried as a hard-working, altruistic figure, highlighting potential neurodiversity to explain his behavior.
Law professors supportive of Bankman-Fried's parents, including Ian Ayres and John Donohue, have penned articles advocating for a reassessment of FTX's financial standing, echoing arguments presented in the legal memo. Meanwhile, others like Jonathan Lipson and David Skeel question Sullivan & Cromwell's role in FTX's bankruptcy, claiming potential interference with the criminal justice process.
Despite the uphill battle, Bankman-Fried's efforts persist as he awaits his fate. Housed in the Metropolitan Detention Center in Brooklyn since last summer, he continues to work on his case, sharing crypto market insights and leaving the detention center for a recent court appearance, appearing composed despite the challenging circumstances.
