Sam Bankman-Fried's (SBF) legal team has launched a vigorous defense against the U.S. Department of Justice's (DOJ) recommendation for a 40 to 50-year prison sentence for the FTX founder, arguing that such a punishment is excessively harsh and does not accurately reflect the severity of his alleged crimes. The defense described the proposed sentence as "medieval" and more suited for a "super villain," highlighting their request for a downward variance from the suggested 63 months. In a recent filing, they listed potential outreach efforts to save FTX, involving entities like Justin Sun, despite his own legal challenges with the SEC, and companies such as Silverlake and Mubadala. Meanwhile, the FTX bankruptcy proceedings have revealed significant financial turmoil, with the exchange's coffers found nearly empty, holding only 105 bitcoins against the nearly 100,000 bitcoins owed to customers. Current CEO John J. Ray III criticized the management under SBF, indicating that victims of the FTX collapse would "never" be fully compensated for their losses. Additionally, the FTX estate is facing an estimated $3 to $5 billion in U.S. government claims amid the bankruptcy, with a court filing indicating no funds left for shareholders. Allegations have also emerged against the bankruptcy law firm Sullivan & Cromwell LLP for potential conflicts of interest and ethical breaches.
Victims Will "Never" Be Whole Thanks To SBF's "Dumpster Fire" - FTX Caretaker CEO Rages https://t.co/9aIqN31MEy
FTX expects US to reduce bankruptcy claim to $3 billion to $5 billion https://t.co/e8h8BIZjP4 https://t.co/aCtsuNauV0
OPINION: None of the post-collapse actions of FTX's team change the reckless management of funds that led to insolvency https://t.co/xPlw7mkyDm
ETHICS UNDER SCRUTINY: FTX'S BANKRUPTCY LAW FIRM FACES ALLEGATIONS - Sullivan and Cromwell LLP, the bankruptcy law firm for FTX, faces allegations of potential conflicts of interest and ethical breaches. - Professors Jonathan Lipson and David Skeel raised concerns in their… https://t.co/bNFvq4NnyO https://t.co/0ysJsGcZ6b
JUST IN: RESEARCH PAPER ALLEGES FTX BANKRUPTCY LAWYERS USED "DECEPTIVE TACTICS" TO GET CONTROL FROM SBF
New FTX CEO says creditors wouldn’t be repaid if not for the “thousands of hours” of work by his team https://t.co/74vEkCsnuW
⚠️ FTX EXPECTS US TO REDUCE BANKRUPTCY CLAIM TO $3 BILLION TO $5 BILLION Full Story → https://t.co/LdAskX2sxb Crypto exchange FTX said it expects to negotiate U.S. government claims in its bankruptcy down to $3 billion to $5 billion, leaving no money for shareholders and…
Research paper makes further allegations regarding FTX's bankruptcy lawyers conflicts of interest https://t.co/9p0RQFo8tp
FTX said it expects to negotiate US government claims in its bankruptcy down to $3 billion to $5 billion, leaving no money for shareholders and contradicting a 'reckless and false' claim by founder Sam Bankman-Fried that FTX's collapse caused no harm https://t.co/st0zcq0eqA https://t.co/9dvwNG7Cd2
A bankruptcy judge ordered the appointment of former federal prosecutor Robert J. Cleary as examiner to lead the investigation of FTX’s operations that ultimately led to its collapse https://t.co/o6woNSR6II
FTX chief lays out all the ways SBF sucks in detailed court filing https://t.co/XCjEhctVhV
A venture led by a former FTX executive has effectively secured $60 million in bankruptcy claims from affected users https://t.co/WjHXfACiIt
uh did anyone else notice that FTX is now preparing to potentially pay for increase in value of holdings since bankruptcy date? (it's bottom of the rung but still) https://t.co/hYjHDtWeFo
A former FTX executive and a user of the bankrupt crypto exchange are among a group who built a platform that has bought $60 million in creditors' claims https://t.co/Zyaux4pIkB
S&C is facing a class action lawsuit alleging it was involved in FTX's fraud Now a paper has alleged further "undisclosed potential conflicts of interest" looks like this is going to get real messy for the bankruptcy lawyers https://t.co/nQ844EL20M
A judge's approval of an investigation into Sullivan & Cromwell's relationship with FTX will test the firm's assertion that its pre-bankruptcy connections with the crypto exchange were limited. https://t.co/ez7T4Gha7I
FTX Was Down to Last 105 Bitcoins When Bankruptcy Rescue Crew Arrived: John Ray https://t.co/imFMbeZFcw via @coindesk @cheyenneligon
🚨JUST IN: US GOVERNMENT TO CLAIM $3-5 BILLION AGAINST FTX ESTATE PER COURT FILING
FTX estate faces estimated $3 to $5 billion in US government claims amid bankruptcy proceedings, court filing shows https://t.co/49NBCW7pGw
John Ray, the bankruptcy administrator for FTX (et al), took time out of his quite busy schedule to succinctly eviscerate SBF’s lawyers’ sentencing brief: https://t.co/QNOwb2x4hq
Bankman-Fried “continues to live a life of delusion” and that “there are plenty of things we did not get back, like the bribes to Chinese officials or the hundreds of millions of dollars he spent to buy access to or time with celebrities or politicians or investments for which he… https://t.co/eVqycyx5Xs
📣 Latest News: FTX victims will ‘never' be whole thanks to SBF's ‘dumpster fire' — John Ray #news #cryptonews #crypto
Current @FTX_Official CEO John J. Ray III told the court that, when he took over, the exchange’s coffers were nearly empty – a mere 105 bitcoins remained on the platform, compared with the nearly 100,000 bitcoins customers were entitled to. @SBF_FTX and his legal team have… https://t.co/lhIusjTeaV
'Why Were the Bitcoins Missing?': FTX Bankruptcy Lead Slams SBF's 'Delusional Defense ► https://t.co/3CxW8BS6Pm https://t.co/3CxW8BS6Pm
Nearly 300 pages of letters from all over the world, detailing what victims actually lost in the collapse of the crypto exchange FTX, was sent Monday to the federal judge handling the criminal case against its founder. https://t.co/GQkbSum9dB
If nothing else that’s some opener from Bankman-Fried’s new lawyer https://t.co/wm6R929QDN
US prosecutor’s sentencing recommendation for SBF https://t.co/HMHPvECfUW
Sam Bankman-Fried's defense team pushed back against the DOJ's 40 to 50 year prison sentence recommendation in a new letter Tuesday, calling it "disturbing." https://t.co/zEnJHBx4tD
SBF's lawyers say the government's proposed 40-50 year sentence is "hostile" and suitable only for a “super villain" https://t.co/pmTU47kVfr
UPDATE: SBF LAWYERS OPPOSE THE PROPOSED MAXIMUM PRISON SENTENCE OF 50 YEARS FOR THE FTX FOUNDER, CALLING IT A "MEDIEVAL" PUNISHMENT THAT DOES NOT ACCURATELY REFLECT THE SEVERITY OF HIS CRIMES
Bankman-Fried docket: SBF's lawyers this evening filed a reply asking for a downward variance from 63 months and including this list of last-gasp FTX outreach ideas, from Justin Sun (with his own civil case by the SEC here @SDNYLIVE) through Silverlake to Mubadala https://t.co/jFdwFkZUDQ https://t.co/txhEhR3lhw