Dad or mum of FTX sufferer who misplaced $130,000 asks decide to go straightforward on SBF

Heather Ferguson’s son misplaced roughly $130,000 in money when crypto change FTX went bankrupt in November 2022. On the time, Ferguson traveled to the place her baby was dwelling to spend 4 days consoling him. Since touching backside, nevertheless, he has proven “resilience,” “confidence,” and a “willpower to fulfill life’s challenges head on with renewed focus and vigor,” Ferguson wrote in a observe to U.S. District Decide Lewis Kaplan on Tuesday.

It helps that in January, her son was contacted by the entity overseeing the disbursement of FTX shopper funds and instructed that he could be refunded the complete quantity he was owed.

“I’m writing to convey my hope that Sam Bankman-Fried will probably be given a sentence within the vary of 70 months for his function within the collapse of FTX,” Ferguson wrote in her letter to the decide. “The hope that buyer funds will probably be reimbursed in some measures mitigates the severity of Sam’s guilt, and it appears to me that the size of his sentence ought to mirror this reality.”

Ferguson’s letter is a part of an eleventh hour push by the protection to attraction to Kaplan’s sense of leniency because the decide gears up for Bankman-Fried’s sentencing listening to on Thursday.

In November, a jury of twelve discovered the previous crypto govt responsible of all seven felony counts towards him, together with wire fraud and conspiracy to commit wire fraud towards FTX prospects and towards Alameda Analysis lenders; conspiracy to commit securities fraud and conspiracy to commit commodities fraud towards FTX traders; and conspiracy to commit cash laundering.

That the jury was in a position to attain a unanimous verdict in only a few hours that FTX’s ex-CEO stole $8 billion from prospects of his now bankrupt crypto change means that they have been really satisfied and that there have been no holdouts that wanted to be coaxed, Yesha Yadav, legislation professor and Affiliate Dean at Vanderbilt College, beforehand instructed CNBC.

On Tuesday, the protection submitted three letters in assist of Bankman-Fried, whereas prosecutors filed greater than 50 letters of their very own, bringing the entire variety of sufferer influence statements to 117.

The query of whether or not FTX prospects being made complete via chapter ought to affect the courtroom’s determination over sentencing is a serious level of competition.

Earlier this month, federal prosecutors in Manhattan wrote in a memo to the courtroom that Bankman-Fried ought to spend between 40 and 50 years in jail.

“Even now Bankman-Fried refuses to confess what he did was unsuitable,” the federal government wrote.

Even because the chapter property guarantees to pay again prospects in full, lots of FTX’s hundreds of victims (reportedly as much as 1,000,000) argue that their crypto stakes have been considerably undervalued by the change’s new management group.

Ferguson was considered one of three involved mother and father to jot down Kaplan, suggesting that Bankman-Fried’s emotional and behavioral problems be taken under consideration as a part of his deliberations over sentencing.

“Alongside the vein of mitigating components, some point out must be product of Sam’s ASD and the afflictive feelings that stemmed from his ADHD and his drugs,” Ferguson wrote. “These are related components in his background which seemingly brought on him to indicate poor judgment, however didn’t seemingly correlate with an intention to be malicious towards his purchasers.”

Bankman-Fried’s psychiatrist, George Lerner, instructed Decide Lewis Kaplan in a letter in August that the previous FTX CEO has a historical past of despair and attention-deficit/hyperactivity dysfunction. ADHD is among the many most typical neurodevelopmental problems in youngsters. 

“Moreover, there have been instances when Mr. Bankman-Fried didn’t have entry to the Emsam patch (usually when travelling/overseas) and exhibited signs of despair, together with lethargy, anhedonia, low motivation, and elevated ruminations,” Lerner wrote.

With out his medicine, Lerner warned the decide, “Bankman-Fried will expertise a return of his despair and ADHD signs and will probably be severely negatively impacted in his means to help in his personal protection.”

At one level throughout Bankman-Fried’s felony trial final 12 months, the protection group additionally argued that he was not receiving enough entry to prescribed medicine, together with Adderall, a therapy for attention-deficit/hyperactivity dysfunction. And when initially remanded to custody, legal professionals for Bankman-Fried argued that their shopper had a “restricted” and “dwindling” provide of Emsam, a transdermal patch for treating despair. 

Maria Centrella, the mom of a 34-year-old son with Asperger’s Syndrome, additionally wrote to Decide Kaplan to share her expertise elevating a toddler on the Autism spectrum.

“I’ve no opinion as to his guilt or innocence beneath the legislation, however do need to share with you my experiences with my son that hopefully may offer you some pause to mirror on Sam’s conduct and psychological state main as much as and throughout the trial,” wrote Centrella, who says that she was not acquainted with Bankman-Fried’s story till she watched Michael Lewis’s “60 Minutes” interview, by which he shared anecdotes from shadowing Bankman-Fried as a part of reporting a ebook about his life.

“As he described Sam I noticed my son and saved questioning why Asperger’s by no means got here up within the section, as a result of these of us educated about it, might see his conduct, his mannerisms … and his brilliance… as enormous indicators of him being on the spectrum,” Centrella wrote.

She went on to say that she reached out to Bankman-Fried’s father, Joe, who confirmed that Sam had certainly been recognized as on the autism spectrum and that the courtroom had been made conscious.

“I don’t know how acquainted you’re with Asperger’s, significantly those that are out working and supporting themselves, however I can converse from expertise that the thoughts of these on the spectrum works otherwise. Although I’ve by no means met Sam, I firmly imagine that whereas he could also be an MIT grad – he didn’t absolutely perceive the scope of what was occurring and didn’t have malicious intent,” she wrote.

Matt Kelly, who additionally has an autistic son and has labored as a particular wants instructor within the UK, wrote a 3 paragraph letter to share his private {and professional} observations that “may be of consideration when deciding a sentence.”

“A lot of Sam’s persona traits counsel some kind of atypical neurological processes; whether or not it is a tendency to keep away from eye contact, a behavior of being unable to give attention to one factor at a time, or an absence of emotional response in a scenario the place most individuals would present outward indicators of pressure and misery,” wrote Kelly.

“He has additionally witnessed his ex-partner and associates testify towards him in courtroom, and to a
individual with uncommon processing, this will likely have been complicated and upsetting,” Kelly added. “I hope that account is taken of Sam’s irregular presentation in your sentencing, in order that retribution is in proportion to the diploma of fault, and that account is taken of which kind of establishment could be most acceptable within the case of somebody like Sam.”

Two of Bankman-Fried’s former buddies and roommates on the Massachusetts Institute of Know-how additionally submitted character references on his behalf.

Daniel Grazian, who graduated in 2013, says that he knew Bankman-Fried “nicely” for 3 years.

“Sam was a sort good friend and a beautiful individual to be round,” Grazian wrote in his letter to the courtroom.

He goes on to say that Bankman-Fried “felt deeply for each dwelling being, livestock included” and that his portrayal as “being motivated by greed” was “utterly inconsistent” with the Sam he knew.

“I imagine that if Sam is given a lenient sentence, he will probably be an asset to society. If the truth that I nonetheless restrict my meat consumption on moral grounds is any indication, Sam will proceed inspiring others to be a little bit bit kinder and gentler,” concludes Grazian’s letter.

One other classmate, Adam Hesterberg, who was a part of the PhD class of 2018, had identified Bankman-Fried earlier than MIT, starting at a math camp in 2007.

“Within the time I knew him, Sam was accountable, was nice to be round, and cared about doing good for the world,” wrote Hesterberg in a letter to the decide.

One instance he cited was Bankman-Fried’s function in executing home chores.

“Sam did his fair proportion of chores, often by washing the pots and dishes utilized in cooking our meals and doing our kitchen laundry. He constantly did so nicely and on time; I solely noticed him late as soon as, when a queue for the washer delayed the kitchen laundry,” the letter states.

Hesterberg went on to element different cases of Bankman-Fried’s good nature, together with desirous to “cut back livestock’ struggling” and encourage his fellow classmates to donate to charitable causes, such because the In opposition to Malaria Basis.

“I do not know to what extent a personality reference from a decade in the past ought to have an effect on Sam’s sentencing, however to no matter extent it does, my impression of Sam was nearly uniformly constructive and is an argument for leniency in his sentence,” Hesterberg concludes.