Former FTX CEO Sam Bankman-Fried arrives for a bail hearing at Manhattan Federal Court on August 11, 2023 in New York City.
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Heather Ferguson’s son lost about $130,000 in cash after the cryptocurrency exchange FTX went bankrupt in November 2022. At that time, Ferguson went to the place where the child lived and spent four days comforting him. Since hitting rock bottom, however, he has shown “resilience,” “confidence” and “a determination to meet life’s challenges with renewed focus and vigor,” Ferguson wrote in a note to U.S. District Judge Lewis Kaplan on Tuesday. road.
Helpfully, in January of this year, the entity overseeing the disbursement of FTX customer funds contacted her son and informed him that he would receive a full refund of what he was owed.
“I am writing this letter to express my hope that Sam Bankman-Fried will be sentenced to 70 months in prison for his role in the FTX debacle,” Ferguson wrote to the judge. “Hope Client The fact that the funds were able to be repaid in some way lessens the seriousness of Sam’s crimes and in my view his sentence should reflect that fact.”
Ferguson’s letter was part of a last-minute plea by the defense for Kaplan’s leniency as the judge prepared for Bankman-Fried’s sentencing hearing on Thursday.
In November, a 12-person jury found the former cryptocurrency executive guilty of all seven criminal counts against him, including wire fraud and conspiracy to commit wire fraud against FTX customers and Alameda Research lender; conspiracy to commit wire fraud against FTX clients and Alameda Research lender; Investors committed securities fraud and conspired to commit commodities fraud; and conspired to commit money laundering.
The jury’s unanimous verdict in just a few hours that the former FTX executive stole $8 billion from customers of his now-bankrupt cryptocurrency exchange shows they actually believed it and had nothing to coax. Diehard, Yesha Yadav, professor of law and associate dean at Vanderbilt University, previously told CNBC.
On Tuesday, the defense submitted three letters of support for Bankman-Fried, and prosecutors submitted more than 50 letters, bringing the total number of victim impact statements to 117.
Whether FTX clients becoming whole through bankruptcy will affect court sentencing decisions is a major point of contention.
Earlier this month, federal prosecutors in Manhattan wrote in a memo to the court that Bankman-Fried should spend 40 to 50 years in prison.
“Even now, Bankman-Fried refuses to admit that what he did was wrong,” the government wrote.
Despite the bankruptcy estate’s promise to fully repay customers, many of FTX’s thousands of victims (reportedly as many as 1 million) believe their cryptocurrency holdings were significantly undervalued by the exchange’s new leadership team.
Parents chimed in
Ferguson was one of three concerned parents who wrote to Kaplan, recommending that Bankman-Fried’s emotional and behavioral disorders be taken into account when considering sentencing.
“In terms of mitigating factors, mention should be made of Sam’s autism spectrum disorder as well as his ADHD and medication-induced distressing emotions,” Ferguson wrote. “These are relevant factors in his background that may have contributed to his display of erroneous judgment, but is unlikely to be associated with the intent to treat customers maliciously.”
Bankman-Fried’s psychiatrist, George Lerner, told Judge Lewis Kaplan in an August letter that the former FTX executive had a history of depression and attention-deficit/hyperactivity disorder. ADHD is one of the most common neurodevelopmental disorders in children.
“In addition, Mr. Bankman-Fried has been unable to use the Emsam patch at times (usually while traveling/out of the country) and has exhibited symptoms of depression, including lethargy, anhedonia, lack of motivation, and increased rumination,” Lerner wrote .
Lerner warned the judge that without medication, “Bankman-Fried’s symptoms of depression and ADHD will relapse, and his ability to assist in his own defense will be severely adversely affected.”
Maria Centrella, the mother of a 34-year-old son with Asperger’s syndrome, also wrote to Judge Kaplan to share her experience raising a child with autism spectrum disorder .
“I have no opinion on whether he is guilty or not under the law, but I do want to share with you my experience with my son in the hope that it will give you pause to reflect on Sam’s behavior and mental state before and during the trial,” Sen. Trela wrote that she said she wasn’t familiar with Bankman-Fried’s story until she watched Michael Lewis’s “60 Minutes” interview, in which he shared about stalking Bankman-Fried anecdote as part of reporting for a book about his life.
“When he was describing Sam, I saw my son and always wondered why Asperger’s never came up in this clip, because those of us who understand it can see his behavior, his mannerisms… …and his talent…as important indicators that he belongs on that spectrum,” Centrella wrote.
She went on to say she contacted Bankman-Fried’s father Joe, who confirmed Sam had indeed been diagnosed with autism spectrum disorder, the court heard.
“I don’t know how familiar you are with Asperger’s, especially those who work outside the home and support themselves, but I can see from experience that people with it think differently. Although I have never met Sam, but I firmly believe that while he may be an MIT graduate, he does not fully understand the scope of what is going on and does not mean any harm,” she wrote.
Matt Kelly, who also has an autistic son and worked as a special needs teacher in the UK, wrote a three-paragraph letter sharing his personal and professional observations that “may be taken into consideration when deciding on the sentence.” these observations”.
“Many of Sam’s personality traits demonstrate some type of atypical neural processing; whether it’s a tendency to avoid eye contact, a habit of not being able to focus on one thing at a time, or a lack of emotional responsiveness in situations that are typical of most people. Will show outward signs of stress and distress,” Kelly wrote.
“He also watched his former partner and colleagues testify against him in court, and
Kelly added, “I hope that Sam’s unusual behavior is taken into account in your sentencing, so that retribution is proportional to the degree of fault and takes into account the degree of Sam’s wrongdoing.” For someone like Sam, what kind of type of institution is most suitable. “
MIT roommate: He does public laundry “on time”
Two of Bankman-Fried’s former friends and roommates at MIT also submitted letters of recommendation on his behalf.
Daniel Grazian, who graduated in 2013, said he got to know Bankman-Fried “very well” over the past three years.
“Sam was a kind friend and a great person to get along with,” Grazian wrote in a letter to the court.
He went on to say that Bankman-Fried had “a deep affection for every living thing, including farm animals” and that his description of being “driven by greed” was “totally inconsistent” with the Sam he knew.
“I believe that if Sam gets a lenient sentence, he will be an asset to society. If the fact that I still limit my meat consumption for ethical reasons is any indication, Sam will continue to inspire others to be kinder and kinder.” Be gentle,” Grazian’s letter concluded.
Another classmate, Adam Hesterberg, a 2018 PhD student, had known Bankman-Fried before attending the MIT Math Camp in 2007.
“When I knew him, Sam was responsible, a joy to be around, and concerned about doing good in the world,” Hesterberg wrote in a letter to the judge.
One example he gave was Bankman-Fried’s role in Doing Housework.
“Sam did his fair share of housework, usually washing the pots and pans for cooking and doing the kitchen laundry. He always did a good job and was punctual; I only observed him being late once, when people were waiting in line Washing machine. Delayed laundry in the kitchen,” the letter read.
Hesterberg went on to detail other examples of Bankman-Fried’s kind nature, including a desire to “reduce the suffering of farm animals” and encouraging his classmates to donate to charitable causes, such as the Foundation to Fight Malaria.
Hesterberg concluded: “I don’t know to what extent the character reference from ten years ago will affect Sam’s sentencing, but regardless of the impact, my impression of Sam is almost always positive, which is also the case for Sam. Reasons for his lighter punishment.”
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