Former FTX CEO Sam Bankman-Fried arrives for a bail listening to at Manhattan Federal Court on August 11, 2023 in New York City.
Michael M. Santiago | Getty Images
Heather Ferguson’s son lost roughly $130,000 in money when crypto change FTX went bankrupt in November 2022. At the time, Ferguson traveled to the place her baby was dwelling to spend 4 days consoling him. Since touching backside, nevertheless, he has proven “resilience,” “confidence,” and a “determination to meet life’s challenges head on with renewed focus and vigor,” Ferguson wrote in a notice to U.S. District Judge Lewis Kaplan on Tuesday.
It helps that in January, her son was contacted by the entity overseeing the disbursement of FTX shopper funds and advised that he can be refunded the total quantity he was owed.
“I am writing to convey my hope that Sam Bankman-Fried will be given a sentence in the range of 70 months for his role in the collapse of FTX,” Ferguson wrote in her letter to the judge. “The hope that customer funds will be reimbursed in some measures mitigates the severity of Sam’s guilt, and it seems to me that the length of his sentence should reflect this fact.”
Ferguson’s letter is an element of an eleventh hour push by the protection to attraction to Kaplan’s sense of leniency because the judge gears up for Bankman-Fried’s sentencing hearing on Thursday.
In November, a jury of twelve discovered the previous crypto govt responsible of all seven prison counts in opposition to him, together with wire fraud and conspiracy to commit wire fraud in opposition to FTX prospects and in opposition to Alameda Research lenders; conspiracy to commit securities fraud and conspiracy to commit commodities fraud in opposition to FTX traders; and conspiracy to commit cash laundering.
That the jury was ready to attain a unanimous verdict in just some hours that FTX’s ex-CEO stole $eight billion from prospects of his now bankrupt crypto change suggests that they had been really satisfied and that there have been no holdouts that wanted to be coaxed, Yesha Yadav, legislation professor and Associate Dean at Vanderbilt University, previously told CNBC.
On Tuesday, the protection submitted three letters in assist of Bankman-Fried, whereas prosecutors filed greater than 50 letters of their very own, bringing the entire quantity of victim impression statements to 117.
The query of whether or not FTX prospects being made complete by chapter ought to affect the court docket’s choice over sentencing is a significant level of competition.
Earlier this month, federal prosecutors in Manhattan wrote in a memo to the court docket that Bankman-Fried ought to spend between 40 and 50 years in prison.
“Even now Bankman-Fried refuses to admit what he did was wrong,” the federal government wrote.
Even as the bankruptcy estate promises to pay back customers in full, many of FTX’s 1000’s of victims (reportedly up to 1,000,000) argue that their crypto stakes have been considerably undervalued by the change’s new management staff.
Parents chime in
Ferguson was one of three involved dad and mom to write Kaplan, suggesting that Bankman-Fried’s emotional and behavioral problems be taken under consideration as half of his deliberations over sentencing.
“Along the vein of mitigating factors, some mention should be made of Sam’s ASD and the afflictive emotions that stemmed from his ADHD and his medications,” Ferguson wrote. “These are relevant factors in his background which likely caused him to show poor judgment, but did not likely correlate with an intention to be malicious toward his clients.”
Bankman-Fried’s psychiatrist, George Lerner, advised Judge Lewis Kaplan in a letter in August that the previous FTX CEO has a historical past of melancholy and attention-deficit/hyperactivity dysfunction. ADHD is among the many commonest neurodevelopmental problems in youngsters.Â
“Additionally, there have been times when Mr. Bankman-Fried did not have access to the Emsam patch (typically when travelling/abroad) and exhibited symptoms of depression, including lethargy, anhedonia, low motivation, and increased ruminations,” Lerner wrote.
Without his treatment, Lerner warned the judge, “Bankman-Fried will experience a return of his depression and ADHD symptoms and will be severely negatively impacted in his ability to assist in his own defense.”
At one point throughout Bankman-Fried’s prison trial final 12 months, the protection staff additionally argued that he was not receiving satisfactory entry to prescribed treatment, including Adderall, a remedy for attention-deficit/hyperactivity dysfunction. And when initially remanded to custody, lawyers for Bankman-Fried argued that their shopper had a “limited” and “dwindling” provide of Emsam, a transdermal patch for treating melancholy.Â
Maria Centrella, the mom of a 34-year-old son with Asperger’s Syndrome, additionally wrote to Judge Kaplan to share her expertise elevating a baby on the Autism spectrum.
“I have no opinion as to his guilt or innocence under the law, but do want to share with you my experiences with my son that hopefully might give you some pause to reflect on Sam’s behavior and mental state leading up to and during the trial,” wrote Centrella, who says that she was not conversant in Bankman-Fried’s story till she watched Michael Lewis’s “60 Minutes” interview, in which he shared anecdotes from shadowing Bankman-Fried as half of reporting a ebook about his life.
“As he described Sam I saw my son and kept wondering why Asperger’s never came up in the segment, because those of us knowledgeable about it, could see his behavior, his mannerisms … and his brilliance… as huge indicators of him being on the spectrum,” Centrella wrote.
She went on to say that she reached out to Bankman-Fried’s father, Joe, who confirmed that Sam had certainly been identified as on the autism spectrum and that the court docket had been made conscious.
“I have no idea how familiar you are with Asperger’s, particularly those who are out working and supporting themselves, but I can speak from experience that the mind of those on the spectrum works differently. Though I have never met Sam, I firmly believe that while he may be an MIT grad – he did not fully understand the scope of what was going on and did not have malicious intent,” she wrote.
Matt Kelly, who additionally has an autistic son and has labored as a particular wants trainer in the UK, wrote a 3 paragraph letter to share his private {and professional} observations that “might be of consideration when deciding a sentence.”
“Many of Sam’s personality traits suggest some type of atypical neurological processes; whether this is a tendency to avoid eye contact, a habit of being unable to focus on one thing at a time, or a lack of emotional response in a situation where most people would show outward signs of strain and distress,” wrote Kelly.
“He has also witnessed his ex-partner and associates testify against him in court, and to a
person with unusual processing, this may have been confusing and upsetting,” Kelly added. “I hope that account is taken of Sam’s abnormal presentation in your sentencing, so that retribution is in proportion to the degree of fault, and that account is taken of which type of institution would be most appropriate in the case of someone like Sam.”
MIT roommate: He did communal laundry “on time”
Two of Bankman-Fried’s former associates and roommates on the Massachusetts Institute of Technology additionally submitted character references on his behalf.
Daniel Grazian, who graduated in 2013, says that he knew Bankman-Fried “well” for 3 years.
“Sam was a kind friend and a wonderful person to be around,” Grazian wrote in his letter to the court docket.
He goes on to say that Bankman-Fried “felt deeply for every living being, farm animals included” and that his portrayal as “being motivated by greed” was “completely inconsistent” with the Sam he knew.
“I believe that if Sam is given a lenient sentence, he will be an asset to society. If the fact that I still limit my meat consumption on ethical grounds is any indication, Sam will continue inspiring others to be a little bit kinder and gentler,” concludes Grazian’s letter.
Another classmate, Adam Hesterberg, who was half of the PhD class of 2018, had identified Bankman-Fried earlier than MIT, starting at a math camp in 2007.
“In the time I knew him, Sam was responsible, was pleasant to be around, and cared about doing good for the world,” wrote Hesterberg in a letter to the judge.
One instance he cited was Bankman-Fried’s function in executing home chores.
“Sam did his fair share of chores, usually by washing the pots and dishes used in cooking our meals and doing our kitchen laundry. He consistently did so well and on time; I only observed him late once, when a queue for the washing machine delayed the kitchen laundry,” the letter states.
Hesterberg went on to element different cases of Bankman-Fried’s good nature, together with wanting to “reduce farm animals’ suffering” and encourage his fellow classmates to donate to charitable causes, such because the Against Malaria Foundation.
“I don’t know to what extent a character reference from a decade ago should affect Sam’s sentencing, but to whatever extent it does, my impression of Sam was almost uniformly positive and is an argument for leniency in his sentence,” Hesterberg concludes.