Parent of FTX victim who lost $130,000 asks judge to go easy on SBF, suggests six years in prison versus DOJ’s 40-50
Former FTX CEO Sam Bankman-Fried arrives for a bail hearing at Manhattan Federal Court on August 11, 2023 in New York City.
Michael M. Santiago | Getty Images
Heather Ferguson’s son lost approximately $130,000 in cash when crypto exchange FTX went bankrupt in November 2022. At the time, Ferguson traveled to where her child was living to spend four days consoling him. Since touching bottom, however, he has shown “resilience,” “confidence,” and a “determination to meet life’s challenges head on with renewed focus and vigor,” Ferguson wrote in a note to U.S. District Judge Lewis Kaplan on Tuesday.
It helps that in January, her son was contacted by the entity overseeing the disbursement of FTX client funds and told that he would be refunded the full amount he was owed.
“I am writing to convey my hope that Sam Bankman-Fried will be given a sentence in the range of 70 months for his role in the collapse of FTX,” Ferguson wrote in her letter to the judge. “The hope that customer funds will be reimbursed in some measures mitigates the severity of Sam’s guilt, and it seems to me that the length of his sentence should reflect this fact.”
Ferguson’s letter is part of an eleventh hour push by the defense to appeal to Kaplan’s sense of leniency as the judge gears up for Bankman-Fried’s sentencing hearing on Thursday.
In November, a jury of twelve found the former crypto executive guilty of all seven criminal counts against him, including wire fraud and conspiracy to commit wire fraud against FTX customers and against Alameda Research lenders; conspiracy to commit securities fraud and conspiracy to commit commodities fraud against FTX investors; and conspiracy to commit money laundering.
That the jury was able to reach a unanimous verdict in just a few hours that FTX’s ex-CEO stole $8 billion from customers of his now bankrupt crypto exchange suggests that they were truly convinced and that there were no holdouts that needed to be coaxed, Yesha Yadav, law professor and Associate Dean at Vanderbilt University, previously told CNBC.
On Tuesday, the defense submitted three letters in support of Bankman-Fried, while prosecutors filed more than 50 letters of their own, bringing the total number of victim impact statements to 117.
The question of whether FTX customers being made whole through bankruptcy should influence the court’s decision over sentencing is a major point of contention.
Earlier this month, federal prosecutors in Manhattan wrote in a memo to the court that Bankman-Fried should spend between 40 and 50 years in prison.
“Even now Bankman-Fried refuses to admit what he did was wrong,” the government wrote.
Even as the bankruptcy estate promises to pay back customers in full, many of FTX’s thousands of victims (reportedly up to a million) argue that their crypto stakes have been significantly undervalued by the exchange’s new leadership team.
Parents chime in
Ferguson was one of three concerned parents to write Kaplan, suggesting that Bankman-Fried’s emotional and behavioral disorders be taken into account as part of his deliberations over sentencing.
“Along the vein of mitigating factors, some mention should be made of Sam’s ASD and the afflictive emotions that stemmed from his ADHD and his medications,” Ferguson wrote. “These are relevant factors in his background which likely caused him to show poor judgment, but did not likely correlate with an intention to be malicious toward his clients.”
Bankman-Fried’s psychiatrist, George Lerner, told Judge Lewis Kaplan in a letter in August that the former FTX CEO has a history of depression and attention-deficit/hyperactivity disorder. ADHD is among the most common neurodevelopmental disorders in children.
“Additionally, there have been times when Mr. Bankman-Fried did not have access to the Emsam patch (typically when travelling/abroad) and exhibited symptoms of depression, including lethargy, anhedonia, low motivation, and increased ruminations,” Lerner wrote.
Without his medication, Lerner warned the judge, “Bankman-Fried will experience a return of his depression and ADHD symptoms and will be severely negatively impacted in his ability to assist in his own defense.”
At one point during Bankman-Fried’s criminal trial last year, the defense team also argued that he was not receiving adequate access to prescribed medication, including Adderall, a treatment for attention-deficit/hyperactivity disorder. And when initially remanded to custody, lawyers for Bankman-Fried argued that their client had a “limited” and “dwindling” supply of Emsam, a transdermal patch for treating depression.
Maria Centrella, the mother of a 34-year-old son with Asperger’s Syndrome, also wrote to Judge Kaplan to share her experience raising a child on the Autism spectrum.
“I have no opinion as to his guilt or innocence under the law, but do want to share with you my experiences with my son that hopefully might give you some pause to reflect on Sam’s behavior and mental state leading up to and during the trial,” wrote Centrella, who says that she was not familiar with Bankman-Fried’s story until she watched Michael Lewis’s “60 Minutes” interview, in which he shared anecdotes from shadowing Bankman-Fried as part of reporting a book about his life.
“As he described Sam I saw my son and kept wondering why Asperger’s never came up in the segment, because those of us knowledgeable about it, could see his behavior, his mannerisms … and his brilliance… as huge 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 indeed been diagnosed as on the autism spectrum and that the court had been made aware.
“I have no idea how familiar you are with Asperger’s, particularly those who are out working and supporting themselves, but I can speak from experience that the mind of those on the spectrum works differently. Though I have never met Sam, I firmly believe that while he may be an MIT grad – he did not fully understand the scope of what was going on and did not have malicious intent,” she wrote.
Matt Kelly, who also has an autistic son and has worked as a special needs teacher in the UK, wrote a three paragraph letter to share his personal and professional observations that “might be of consideration when deciding a sentence.”
“Many of Sam’s personality traits suggest some type of atypical neurological processes; whether this is a tendency to avoid eye contact, a habit of being unable to focus on one thing at a time, or a lack of emotional response in a situation where most people would show outward signs of strain and distress,” wrote Kelly.
“He has also witnessed his ex-partner and associates testify against him in court, and to a
person with unusual processing, this may have been confusing and upsetting,” Kelly added. “I hope that account is taken of Sam’s abnormal presentation in your sentencing, so that retribution is in proportion to the degree of fault, and that account is taken of which type of institution would be most appropriate in the case of someone like Sam.”
MIT roommate: He did communal laundry “on time”
Two of Bankman-Fried’s former friends and roommates at the Massachusetts Institute of Technology also submitted character references on his behalf.
Daniel Grazian, who graduated in 2013, says that he knew Bankman-Fried “well” for three years.
“Sam was a kind friend and a wonderful person to be around,” Grazian wrote in his letter to the court.
He goes on to say that Bankman-Fried “felt deeply for every living being, farm animals included” and that his portrayal as “being motivated by greed” was “completely inconsistent” with the Sam he knew.
“I believe that if Sam is given a lenient sentence, he will be an asset to society. If the fact that I still limit my meat consumption on ethical grounds is any indication, Sam will continue inspiring others to be a little bit kinder and gentler,” concludes Grazian’s letter.
Another classmate, Adam Hesterberg, who was part of the PhD class of 2018, had known Bankman-Fried before MIT, beginning at a math camp in 2007.
“In the time I knew him, Sam was responsible, was pleasant to be around, and cared about doing good for the world,” wrote Hesterberg in a letter to the judge.
One example he cited was Bankman-Fried’s role in executing house chores.
“Sam did his fair share of chores, usually by washing the pots and dishes used in cooking our meals and doing our kitchen laundry. He consistently did so well and on time; I only observed him late once, when a queue for the washing machine delayed the kitchen laundry,” the letter states.
Hesterberg went on to detail other instances of Bankman-Fried’s good nature, including wanting to “reduce farm animals’ suffering” and encourage his fellow classmates to donate to charitable causes, such as the Against Malaria Foundation.
“I don’t know to what extent a character reference from a decade ago should affect Sam’s sentencing, but to whatever extent it does, my impression of Sam was almost uniformly positive and is an argument for leniency in his sentence,” Hesterberg concludes.
Subaru is the latest Japanese automaker to announce it will “re-evaluate” its EV plans. The company is rethinking its strategy with slowing sales and a potential multi-billion-dollar hit from Trump’s auto tariffs. The tariffs might not even be Subaru’s biggest threat.
Subaru and other Japanese automakers adjust EV plans
Within the past week, Japanese automakers, including Nissan, Honda, Toyota, and now Subaru, have announced major adjustments to their EV plans.
After releasing fiscal year financial results on Wednesday, Subaru’s CEO, Atsushi Osaki, said, “We are re-evaluating our plans, including the timing of investments.” Osaki added that the move is due to “today’s rapidly changing environment” and other external factors.
Like most of the industry, Subaru is bracing for a shift under the Trump administration, which could cost it billions. With around half of its vehicles sold, the US is key for the Japanese automaker.
Subaru said Trump’s new auto tariffs could cost the company up to $2.5 billion this year. The automaker is looking at ways to boost US production, but it won’t be easy.
Tomoaki Emori, Subaru’s senior managing executive director, said (via Automotive News), “Under the current circumstances, there is probably no way not to expand in the US. We must think about how to go about that.”
Emori added that the company still has the production capacity, “so we would like to mitigate the impact of tariffs while making use of it.”
Subaru joins a growing list of automakers in pulling its earnings forecast, citing “developments in US tariff policy” make it hard to forecast.
The company’s global sales fell 4.1% to 936,000 units over the past year. In North America, deliveries also fell 4.1% to 732,000 vehicles. Subaru anticipates global sales will continue dropping to around 900,000 this year, or another 4% drop. A part of the forecast is due to downtime at its Yajima plant as Subaru prepares to produce EV batteries.
Osaki said Subaru is “making various preparations for a BEV-dedicated plant,” but added it may add a mix of gas-powered vehicles.
Subaru unveiled its second EV for the US at last month’s NY Auto Show, the 2026 Trailseeker. The Outback-sized electric SUV will go on sale in 2026, joining the smaller Solterra in Subaru’s EV lineup in the US.
Since “It is becoming more difficult to decide how to incorporate electrification into our production mix,” Emori said, Subaru is “thinking about how to incorporate hybrids and plug-in hybrids.”
Electrek’s Take
Subaru and other Japanese automakers are quickly falling behind Chinese EV leaders like BYD in some of their most important sales regions, like Southeast Asia.
Delaying new EV models and other projects will only set them further behind in the long run. Nissan is in crisis mode after scrapping plans to build a new battery plant in Japan. The facility was expected to produce lower-cost LFP batteries, which could have helped Nissan compete on costs with BYD and others.
Last week, Toyota’s President, Koji Sato, said the company will be “reviewing” its goal of selling 1.5 million electric vehicles by 2026. And just yesterday, Honda announced plans to pause around $15 billion in planned EV investments in Canada.
BYD and other EV leaders are expanding overseas to drive growth after squeezing foreign brands, especially Japanese automakers, out of China.
Next year, BYD is launching its first kei car, or mini EV, that’s expected to be a big threat to Japanese automakers. A Suzuki dealer (via Nikkei) warned, “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”
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Porsche Cars North America has integrated over 97,000 more charging stations into its app, streamlining its Porsche Charging Service.
That brings the total number of EV charging stations available to Porsche Charging Service customers in the US to 102,000, with more scheduled to be added in 2025. That means Porsche drivers can now use the My Porsche app as a one-stop shop to easily find, use, and pay at most J1772 and CCS charging stations.
“This is a significant milestone for Porsche and the electric vehicle journey,” said Timo Resch, president and CEO of Porsche Cars North America. “We know flexibility and choice are important.”
Customers in the Porsche Charging Service inclusive period – that’s the year after you buy your EV – or who sign up for Porsche Charging Service Premium can now access the ChargePoint, EV Connect, EVgo, Flo, EvGateway, and Ionna networks, in addition to chargers in the Electrify America network.
Customers in the Porsche Charging Service Base plan will receive access later this summer.
Read more: ChargePoint unveils ‘revolutionary’ V2X EV charger tech that can double Level 2 speeds
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Tesla’s (TSLA) board is reportedly exploring a new CEO pay deal for Elon Musk, who might not get back his $55 billion 2018 compensation package.
According to a new Financial Times report, Tesla’s board created a new “special committee” to explore a new CEO pay package for Musk.
The report points to the committee looking at new stock options and “alternative ways” to compensate Musk if Tesla fails to reinstate his 2018 compensation package, which was rescinded by a judge who found that Musk negotiated the deal with a board under his control and then misrepresented it to shareholders.
Musk is Tesla’s largest shareholder and therefore, he stands to benefit the most when the company does well. However, he doesn’t take a salary for his role as CEO.
Historically, He has received stock compensation packages, with the one secured in 2018 being the controversial one currently under contention.
Since then, no new CEO compensation package has been approved, and Tesla has not suggested another one as it tried to appeal the judge’s decision on the 2018 package.
The company is currently attacking the decision on two fronts with an appeal to the Delaware Supreme Court and a new legislation in Delaware to try to circumvent the decision altogether.
FT reporting that the board is working on a new compensation package with backpay could point to Tesla anticipating not being able to reinstate the original compensation package.
Robyn Denholm and Kathleen Wilson-Thompson are the board members reportedly on the new committee.
Denholm took over from Musk as Tesla’s chair, and she has recently made headlines for selling her Tesla stock options for more than $530 million over the last few years.
Electrek’s Take
It increasingly looks like Tesla won’t be able to distance itself from Musk and separate its fate from his.
Musk has masterfully convinced Tesla shareholders that the destruction of its core business, selling electric vehicles, doesn’t matter because the company is on the verge of solving self-driving – something he has claimed every year for the last 6 years and has been wrong every time.
Now that they don’t care about EVs, there’s no point in blaming Musk for killing demand and delivering a single new vehicle in 5 years, the Cybertruck, a commercial flop.
Therefore, the only thing that will make Tesla shareholders stop wanting Musk as CEO is if they stop believing his self-driving and humanoid robot claims.
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