Will SBF face a light sentence and return to the scene under full compensation? Lawyer's opinion indicates

Recently reported that the founder of the bankrupt exchange FTX, SBF, will receive a judgment result on 3/28. The current reorganized team estimates that FTX is able to compensate all creditors, leading to discussions in the public about whether SBF will receive a lenient sentence or even make a comeback. CoinDesk interviewed lawyer Jordan Estes, who believes that the situation is not that simple.

SBF's sentencing on 3/28 imminent, FTX's recovery may lighten SBF's legal liability

Under Full Repayment, Will SBF "Make a Comeback" with a Light Sentence?

Possible as Short as 24 Months?

SBF was convicted of fraud in November 2023, and the sentencing result will be announced on March 28 this year. Lawyer Jordan Estes stated that the bull market in cryptocurrency may influence the sentencing result, as the repayment situation can be considered during sentencing. According to the sentencing guidelines, for low-level losses, the recommended range is 24-30 months, while high losses could result in over 20 years or life imprisonment.

SBF Will Not Receive a 115-Year Sentence

According to federal sentencing guidelines, SBF was initially charged with wire fraud, wire fraud conspiracy, and money laundering conspiracy, with a maximum sentence of 20 years imprisonment for all convictions, and a maximum of five years for charges of commodities fraud, securities fraud, and campaign finance conspiracy. SBF faced eight charges initially, one of which was later dropped, with a maximum possible sentence of 115 years.

However, lawyer Martin Auerbach believes that these charges will be concurrent, not consecutive; and since these charges are all based on specific themes, the judge will focus on the core behaviors in the trial. In conclusion, the final outcome may not be as exaggerated as outsiders imagine.

Debate in Court Will Continue

Lawyer Jordan Estes believes that even though FTX fully repaid, it does not mean SBF has a high chance of receiving a light sentence.

Lawyer Jordan Estes expects there to be intense debate in court during sentencing, with SBF's defense possibly arguing that customers and creditors have already been compensated, even at zero losses.

However, the restitution behavior that can help defendants, as indicated in the sentencing guidelines, only applies to situations "before the crime is discovered." Since FTX's restitution behavior occurred long after the criminal acts, it does not meet this standard.

Using Bernie Madoff's case as an example, where the bankruptcy trustee recovered a large sum of illicit funds but did not reduce his 150-year prison sentence.