Victims of defunct cryptocurrency exchange FTX have issued statements ahead of Sam “SBF” Bankman-Fried’s sentencing hearing, describing the emotional and financial impact of the former CEO’s actions and the collapse of the firm.
In March 18 filings in United States District Court for the Southern District of New York, prosecutors released several victim impact statements regarding Bankman-Fried and former FTX and Alameda executives Gary Wang, Caroline Ellison, Nishad Singh and Ryan Salame. With the exception of a representative for BlockFi users, many of the statements had personal information redacted as part of efforts by prosecutors to protect victims’ privacy.
“[W]e entrusted FTX with our hard-earned savings, believing in the integrity of the platform and the digital assets it facilitated,” said one unidentified victim. “However, the abrupt downfall of FTX has not only resulted in a substantial financial loss of over $19,000 at current prices but has also shaken the very foundation of our trust in the digital asset space.”
They added:
“The repercussions of this event extend beyond mere numbers [...] the emotional and psychological toll has been equally devastating, impact our relationship and future planning.”
Accounts from other victims detailed the “emotional toll” the collapse of FTX caused them, describing uncertainty about their future and impacts on personal relationships. Many called for SBF to face justice regarding his role in the events leading up to the downfall of the crypto exchange.
“Bankman-Fried’s felonious conduct has caused irreparable harm to hundreds of thousands of BlockFi customers,” said Mohsin Meghji, plan administrator of the BlockFi Wind-Down Debtors, via counsel. “Bankman-Fried’s efforts to pretend they have suffered no harm are insulting and should be rejected.”
Related: Sam Bankman-Fried’s bankruptcy narrative revealed in new court documents
A jury convicted Bankman-Fried of seven felony counts in November 2023. The former FTX CEO testified in his own defense at trial, mainly deferring blame for the downfall of the crypto exchange.
Bankman-Fried is scheduled to be sentenced on March 28. Prosecutors have recommended a judge sentence the former FTX CEO to 40 to 50 years in prison, while SBF’s lawyers have suggested 6.5 years. Experts have suggested that Judge Lewis Kaplan was unlikely to impose the maximum allowable penalty on Bankman-Fried, but he may consider victim impact statements at sentencing.
The former FTX CEO last appeared in court in February, when he waived conflicts of interest for attorneys representing him and former Celsius CEO Alex Mashinsky. Christian Everdell, Mark Cohen and other lawyers who represented SBF at his criminal trial withdrew from the case in March.
Magazine: Can you trust crypto exchanges after the collapse of FTX?