What is the likelihood of a “light sentence and return to society” under full compensation circumstances in SBF’s impending sentencing? Insights from legal experts
FTX founder SBF is expected to receive a verdict on March 28th in the bankruptcy case. The restructuring team estimates that FTX is now able to compensate all creditors, leading to discussions on whether SBF will receive a lighter sentence or even make a comeback. CoinDesk interviewed lawyer Jordan Estes, who believes that the situation is not that simple.
Under the condition of full compensation, will SBF receive a lighter sentence and make a comeback?
Is there a chance for a minimum of 24 months?
SBF will not be sentenced to 115 years in prison
There will still be debates in court
SBF was convicted of fraud in November 2023 and will receive a verdict on March 28th this year. Lawyer Jordan Estes believes that the cryptocurrency bull market will have an impact on the verdict, as compensation can be considered during sentencing. According to sentencing guidelines, the recommended range for low losses is 24-30 months, while high losses can result in more than 20 years or life imprisonment.
According to the federal sentencing guidelines, SBF initially faced charges including wire fraud, wire fraud conspiracy, and money laundering conspiracy. If convicted on all charges, the maximum sentence could be 20 years in prison, while charges of commodity fraud, securities fraud, and campaign finance conspiracy could result in a maximum sentence of five years. SBF initially faced eight charges (one later withdrawn), with a maximum potential sentence of 115 years in prison.
However, lawyer Martin Auerbach believes that the sentences for these charges will be concurrent rather than consecutive, and since these charges are based on specific themes, the judge will focus on the core behavior during the trial. In conclusion, the final outcome may not be as exaggerated as the public imagines.
Lawyer Jordan Estes believes that even though FTX has fully compensated, it does not mean that SBF has a high chance of receiving a lighter sentence.
Lawyer Jordan Estes expects intense controversy during sentencing, and SBF’s defense may argue that customers and creditors have already received compensation, even zero losses.
However, according to the sentencing guidelines, restitution only applies to situations “before the discovery of the crime.” Since FTX’s restitution occurred long after the criminal behavior, it does not meet that standard.
Taking the Madoff case as an example, the bankruptcy trustee recovered a large amount of stolen funds, but it did not reduce Madoff’s 150-year prison sentence.
SBF
Sentencing
Imprisonment
