The Department of Justice submitted 52 victim statements ahead of Sam Bankman-Fried’s sentencing.
The US DOJ has submitted 52 victim statements to the Prosecutor’s Office as Sam Bankman-Fried is scheduled to be sentenced on Thursday.
The statement revealed the emotional and financial distress of many victims. A former member of the Unsecured Creditors Committee (UCC) has disclosed a personal claim for $4 million.
The downfall of FTX cost the victims all their life savings and forced them to resign as they could not sustain a period of no income. A former UCC member described the incident as causing him severe depression and said it had cost him more than just finances.
Victims detail how the collapse of FTX disrupted their family lives and had a negative impact on their marital bonds and lifestyle. He argues that FTX should value its assets based on their current value, not just what they were worth at the time the bankruptcy was filed.
A Spanish investor expressed the sense of betrayal he felt after investing his savings with the dream of starting a business. FTX’s high-profile advertising attracted this victim, but its eventual collapse derailed his plans for future business.
One victim in Italy experienced her ‘worst nightmare’ while previously holding funds in Celsius. She moved her funds to FTX as she thought her exchange was a safer choice. Following her breakdown, she suffered severe psychological trauma, which eventually affected her marriage. She calls for compensation based on current market value and criticizes legal procedures that insufficiently address victims’ needs.
Victim statements reveal the depth of the emotional and psychological impact on Sam Bankman-Fried, with each statement reflecting how the incident left them depressed and affected their family life.
But victims may find some relief, as the exchange recently sold $884 million in shares of AI company Anthropic. Now the victims are hoping Judge Lewis Kaplan will consider their stories when he sentences Sam Bankman-Fried and that the federal court will reconsider its approach to reimbursement.