|
|
Sam Bankman-Fried has requested a sentence of no more than 6.5 years for what has been dubbed the crime of the century, which is clearly absurd. Equally ludicrous is the defense strategy of his newly hired attorney, who cites SBF's autism and vegetarianism in advocating for leniency, and exploits the possibility of full restitution for the victims. One's dietary choices are not grounds for leniency, especially when the legacy of FTX could reclaim only a portion (but not all) of the billions of dollars' worth of missing assets, not due to SBF's efforts.
"There are many things we haven't recovered, such as bribing officials in the Celestial Empire, or his spending hundreds of millions of dollars on access to celebrities or politicians, or his grossly overpaying for these investments in cases of zero due diligence," wrote FTX CEO John J. Ray III, who oversees the exchange's bankruptcy proceedings, in a memo dated March 20. "The harm is massive. Remorse is nonexistent."
However, a sentence equivalent to life imprisonment for SBF is also insane. According to the U.S. Sentencing Guidelines, SBF faces a maximum of 110 years in prison. The prosecutors in this case sought 40 to 50 years of imprisonment for SBF on two counts of fraud and five counts of conspiracy. As Judge Lewis Kaplan remarked when sentencing him to 25 years, "That would be excessive."
Public opinion on the matter (indeed) seems divided, with many feeling the sentence is too lenient. SBF will need to serve at least 85% of the 25-year term, meaning the 32-year-old player could be free in his early 50s. SBF betrayed the trust of investors, clients, and employees. Testimonies from dozens of victims recounted the shock and financial distress he caused, as well as the disruption of countless lives. Judge Kaplan also ruled that SBF attempted to obstruct justice and perjured himself three times.
Yet, with today's judgment, the cryptocurrency industry might wish SBF well. Setting aside the terrifying statistics and realities of federal prisons— including the fact that the average incarceration rate in the United States is five times that of most other countries, and the racial disparities in the criminal justice system—SBF has lost a lifetime for nonviolent crimes. Considering the harm SBF caused to many cryptocurrency holders and the entire industry, this may be an unpopular viewpoint.
Arguing whether SBF is guilty is meaningless. Whether he intended to deceive the world is meaningless. There is also no reason to believe SBF's argument that he could better help clients than high-paid bankruptcy lawyers currently in the field. Clearly, SBF did not attempt to protect or recover clients' funds before his fraudulent activities came to light. Similarly, attempting to answer whether SBF turned bad for the sake of utilitarian goals of doing the greatest good in the world is meaningless.
There are almost no preventive measures for the SBF case. Dozens of character witnesses favorable to him depicted a smart kid. SBF's mother, Barbara Fried, wrote that Sam was a "kind angel" who carried the world's pain in his depressed mind, without mentioning his victims. His charity work was worthless; giving away other people's money is easy.
But hoping for someone to be locked up for decades—with no chance of redemption or attempting to do right—is strange. Imprisonment serves several purposes: retaliating against harm done to society, deterring others from committing similar crimes, and for public safety reasons. Prosecutors argued that SBF is "highly likely" to commit further crimes if released, hence requesting his detention until his 80s.
Prison serves another purpose: rehabilitation. Although SBF's lawyer, Marc Mukasey, told the judge that the FTX founder isn't a "ruthless financial serial killer" intent on robbing clients, only a mind reader could say exactly what his intentions were. Clearly, SBF began withdrawing from client accounts within a year of founding the FTX futures exchange and has shown almost no remorse for his crimes. However, as human rights lawyer Clive Stafford Smith said, "Never judge a person solely by their worst actions."
Demonizing SBF, sometimes referred to as the "face of cryptocurrency," is actually demonizing the entire cryptocurrency. Crypto enthusiasts should hope that SBF can reform in due time and feel remorse, just as the industry itself should strive to rid itself of fraud. I can't comment on whether SBF's effective altruism is sincere, but I'd like to believe in the possibility of his goodness, just as cryptocurrency supporters believe in the potential benefits of cryptocurrency to influence the world, despite critics.
In short: SBF deserves to continue living after his release. |
|
Post time 9-4-2024 09:44:54