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Sam Bankman-Fried deserves 40 to 50 years in prison for “historic” cryptocurrency fraud, prosecutors say
Federal prosecutors asked a New York judge on Friday to sentence FTX founder Sam Bankman-Fried to between 40 and 50 years in prison for cryptocurrency crimes they described as a “historic fraud.”
Prosecutors made the request as they submitted their presentence recommendations to a federal judge who will sentence the man who at one time dazzled the cryptocurrency world with his promotional skills, including his access to famous people willing to promote his businesses.
Bankman-Fried, 32, is scheduled to be sentenced in Manhattan federal court on March 28 following his November conviction on fraud and conspiracy charges.
Prosecutors say he cost customers and investors in FTX and its related companies at least $10 billion from 2017 through 2022.
He was extradited to the United States in December 2022 from the Bahamas after his companies collapsed a month earlier. Originally permitted to remain at home with his parents in Palo Alto, California, he was jailed last year weeks before his trial after Judge Lewis A. Kaplan concluded that he had tried to tamper with trial witnesses.
In their presentence submission, prosecutors described Bankman-Fried’s crimes as “one of the largest financial frauds in history, and what is likely the largest fraud in the last decade.”
“The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence,” they wrote.
Prosecutors invoke Bankman-Fried’s political donations, bribes
They said his “unlawful political donations to over 300 politicians and political action groups, amounting to in excess of $100 million, is believed to be the largest-ever campaign finance offense.”
And they said his $150 million in bribes to Chinese government officials was one of the single largest by an individual.
“Even following FTX’s bankruptcy and his subsequent arrest, Bankman-Fried shirked responsibility, deflected blame to market events and other individuals, attempted to tamper with witnesses, and lied repeatedly under oath,” prosecutors said, citing his testimony at trial.
FTX’s bankruptcy in November of 2022 cast a cloud over the entire crypto industry, as the sudden collapse of other major industry players vaporized billions in client wealth.
“So many people believed in him, he was a genius,” Natalie Tien, a former FTX employee, told CBS News last year.
Tien said attending the trial of her former boss was cathartic after experiencing months of confusion and depression when his empire collapsed and she too “lost a lot of money.”
Bankman-Fried’s lawyers attacked previous sentence recommendation
Two weeks ago, Bankman-Fried’s lawyers attacked a probation office recommendation that their client serve 100 years in prison, saying a sentence of that length would be “grotesque” and “barbaric.”
They urged the judge to sentence Bankman-Fried to just a few years behind bars after calculating federal sentencing guidelines to recommend a term of five to 6 1/2 years in prison.
They cited their client’s medical conditions, which include autism, as well as his goals to improve the world through his now-defunct crypto exchange, according to the Wall Street Journal.
“Sam is not the ‘evil genius’ depicted in the media or the greedy villain described at trial,” his lawyers wrote. “Sam is a 31-year-old, first-time, nonviolent offender, who was joined in the conduct at issue by at least four other culpable individuals, in a matter where victims are poised to recover —were always poised to recover— a hundred cents on the dollar.”
CBS News
Tennessee DA accused of firing multiple times at fugitive, hitting home with woman and her 3 children inside
A district attorney in Tennessee is facing a reckless endangerment charge after shooting at a fugitive several times and hitting a home that had a woman and her three children inside.
The Tennessee Bureau of Investigation announced the grand jury charge Monday against District Attorney Chris Stanford. His district covers Van Buren and Warren counties.
The indictment says that as the incident unfolded in Smithville on Nov. 21, a bullet Stanford shot from his handgun went through a front porch patio chair, through an exterior wall and into the living room wall of the home. The woman and children weren’t hurt.
Smithville is about 60 miles southeast of Nashville.
The indictment says that Stanford fired the shot “unlawfully, intentionally and recklessly.” There was no immediate threat to him or others, he wasn’t aiming the handgun, and “just held it out and shot” without using the gun’s sights, the indictment adds.
Following his indictment, Stanford surrendered at the DeKalb County Jail and was released after posting a $10,000 bond, TBI said. A message left with Stanton’s office was not immediately returned Tuesday.
The Warren County Sheriff’s Office described the circumstances leading to the incident last month. In a social media post, it said authorities were pursuing suspects after finding three dead bodies at a house and at an adjacent building.
The suspects were sighted in DeKalb County, the sheriff’s office said. One of them was taken into custody without incident. Stanford and other law enforcement officials chased the other suspect, who was a passenger in a car, the office said.
While trying to help the suspect flee, the driver struck a homeland security officer with the car, the sheriff’s office said.
In a statement last month to CBS affiliate WTVF-TV, Stanford said he fired shots in response to the homeland security agent being hit. No one was shot when Stanford fired his gun. The homeland security officer was injured and taken to the hospital, according to a social media post by District Attorney Bryant Dunaway.
“The vehicle then drove toward me and others, accelerating quickly. I fired my service weapon in defense of myself and others at the scene. Based upon my training and the circumstances that presented themselves, I believe my actions were necessary and justified,” Stanford said.
Stanford also told the news station he has a state law enforcement certification to carry his weapon at all times.
The two suspects in the three deaths were taken into custody and charged with criminal homicide, while the driver, also taken into custody, faces felony evading arrest and aggravated assault charged, according to the sheriff’s office.
Stanford will make an appearance in court on Jan. 7, WTVF reported. Since he showed up at the scene and fired his weapon, he is now a witness and cannot prosecute the triple murder in his own county, the station reported.
CBS News
Accused mastermind of journalist’s murder wanted by Mexico — but U.S. has called him a “protected witness”
Mexico has asked the United States to extradite the suspected mastermind behind the murder of journalist Javier Valdez after he was arrested on drug charges, the attorney general said.
Damaso Lopez Serrano — who the Justice Department says is known as “Mini Lic” — is accused of ordering the 2017 killing of Valdez, an award-winning journalist and AFP contributor who covered the narcotics trade.
The alleged former high-ranking member of the Sinaloa Cartel was arrested on Friday in Virginia on charges of trafficking fentanyl. Lopez Serrano is the son of Damaso Lopez Nunez, who launched a struggle for control of the cartel following the arrest of its leader, Joaquin “El Chapo” Guzman.
Mexico’s Attorney General Alejandro Gertz described Lopez Serrano as the “mastermind” behind Valdez’s murder.
“We have already prosecuted the rest of the perpetrators and they are in jail,” he told a news conference.
Valdez was shot and killed in his car on May 15, 2017 in the Sinaloa state capital of Culiacan near the offices of his weekly newspaper Riodoce.
Investigators believe Lopez Serrano ordered the hit because he was angry about information published by Valdez about the Sinaloa Cartel’s internal power struggles.
Mexico has made several extradition requests for Lopez Serrano, who surrendered to U.S. authorities in July 2017 for drug trafficking and cooperated in exchange for a reduced sentence. At the time, the U.S. Drug Enforcement Administration said Lopez Serrano was “believed to be the highest-ranking Mexican cartel leader ever to self-surrender in the United States.”
He was released from prison on parole in 2022.
Gertz said that Mexico had asked “on countless occasions” for Lopez Serrano to be handed over, but Washington declined because he had become a “protected witness” and “was giving them a lot of information.”
He voiced hope that with Lopez Serrano’s latest arrest “there are more than enough reasons” for the United States to finally grant Mexico’s request.
Wracked by violence related to drug trafficking, Mexico is one of the world’s most dangerous countries for journalists, news advocacy groups say.
Reporters Without Borders says more than 150 newspeople have been killed in Mexico since 1994 — and 2022 was one of the deadliest years ever for journalists in Mexico, with at least 15 killed.
Media workers are regularly targeted in Mexico, often in direct reprisal for their work covering topics like corruption and the country’s notoriously violent drug traffickers.
Most recently, in October, gunmen killed a journalist whose Facebook news page covered the violent western Mexico state of Michoacan. Then less than 24 hours later, an entertainment reporter in the western city of Colima was killed inside a restaurant she owned.
CBS News
2 sisters, 7 years apart in age, also receive heart transplants 7 years apart in Chicago
CHICAGO (CBS) — Two sisters have grateful hearts after they both received heart transplants at the same age—seven years apart.
Younger sister Meredith Everhart and older sister Abbey Cannon are now bonded by a genetic condition and a second chance at life.
“What’s ironic is that when she needed a heart transplant, was exactly the same age I needed a heart transplant,” said Cannon. “Seven years apart in age, seven years apart within 30 days of transplant, and our birthdays are within 30 days.”
The sisters share a special bond of getting a second chance at life, which they both received at the age of 38 years old.
Both sisters suffer from hypertrophic cardiomyopathy—otherwise known as HCM.
The genetic condition is a form of heart disease that causes the heart muscle to thicken.
In 2012, Cannon had chest pain. She was misdiagnosed in Nashville, Tennessee, and got a second opinion at Northwestern Medicine in 2016.
“Within six months, I was inpatient on an aortic balloon pump waiting for a heart,” Cannon said. “I ended up getting my heart 32 days later, So my date is February 27, 2017.”
Just months after Cannon’s transplant, Everhart was diagnosed with HCM too. She tried medication and participated in clinical trials, but her condition kept getting worse.”
“For me, it was, she’s right—I was in denial for a long time,” said Everhart, “and I didn’t want to be sick. I was in my 20s. I was in my early 30’s. I was like, this is not happening. I saw how bad she suffered.”
In May 2022, Everhart got COVID-19, and it sent her into heart failure.
She was added to the transplant list one year later.
“I got the call on January 29 of this year, 2024, and it’s been a journey,” Everhart said. “It’s been fantastic though. Northwestern has been great.”
Cannon said she can’t stress enough how important it is to become an organ donor.
“Had we not had someone that gave that most selfless gift, neither of us would be here,” she said.