FTX Victims’ Irreparable Harm: Ahead of Sam Bankman-Fried’s Sentencing

Ahead of Sam “SBF” Bankman-Fried’s upcoming sentencing hearing, victims of the defunct cryptocurrency exchange FTX have shared their statements, shedding light on the emotional and financial impact of Bankman-Fried’s actions and the collapse of the firm. The statements were released by prosecutors in the United States District Court for the Southern District of New York on March 18. In order to protect the victims’ privacy, personal information was redacted from the statements, except for the representative of BlockFi users.

One victim expressed their disappointment, stating that they had trusted FTX with their hard-earned savings, believing in the platform’s integrity. The sudden downfall of FTX not only caused a considerable financial loss but also shattered their trust in the digital asset space. The repercussions of the collapse extended beyond mere numbers, leading to emotional and psychological devastation that impacted relationships and future planning.

Other victims shared accounts of the emotional toll they experienced due to the collapse of FTX. They expressed uncertainty about their future and described the negative impacts on personal relationships. Many victims urged SBF to face justice for his role in the events leading up to the exchange’s downfall and the subsequent consequences faced by its users.

Mohsin Meghji, the plan administrator of the BlockFi Wind-Down Debtors, denounced Bankman-Fried’s felonious conduct and emphasized the irreparable harm caused to hundreds of thousands of BlockFi customers. Meghji rejected Bankman-Fried’s attempts to downplay the harm suffered by the victims as insulting.

In November 2023, Bankman-Fried was convicted of seven felony counts. During the trial, he testified in his own defense, largely deflecting blame for the exchange’s collapse. The former CEO of FTX is scheduled to be sentenced on March 28. Prosecutors have recommended a prison term of 40 to 50 years, while Bankman-Fried’s lawyers have proposed a sentence of 6.5 years. Experts believe that Judge Lewis Kaplan is unlikely to impose the maximum penalty but may take into consideration the victim impact statements during sentencing.

During his last court appearance in February, Bankman-Fried waived conflicts of interest for his defense attorneys, who also represented former Celsius CEO Alex Mashinsky. In March, Christian Everdell, Mark Cohen, and other lawyers representing Bankman-Fried withdrew from the case.