FTX’s top creditor activist talks about Sam Bankman-Fried’s 25-year ruling

FTX creditor activist Sunil Kavuri shared his court experience since the ruling of Sam Bankman-Fried on March 28, 2024, as the convicted founder’s appeal is closer to him, scheduled for November 3, 2024. Kavuri traveled from London to New York and represented FTX creditors around the world at sentencing hearings.

Judge Lewis Kaplan sentenced him to 25 years in prison after criticising Bankmanfried’s trial testimony and risk-taking behavior. The judge referenced Bankman Fried’s willingness to “coinflip for the survival of humanity,” and compared his actions to steal money for gambling in Las Vegas before returning the stolen funds.

Courtroom atmosphere restricted public access

The verdict occurred in small courtrooms that accommodate up to about 60-70 people, with most seats reserved for legal teams and participants. Only the public could observe the lawsuit, as journalists had to wait one night in line for admission.

Kavuri sat in the second row behind the prosecutor and observed firsthand that the banker had cleaned up during the hearing. He explained that the defendant appears to have physically changed from his appearance in the public interview.

Bankmanfried announced his appeal to the judge, stating that his actions “haunt me every day” and accepted responsibility as FTX CEO. However, Judge Kaplan characterized the defendant’s trial testimony as evasive and dishonest, noting his 30 years of judicial experience without seeing similar court performances.

The victim impact statement reveals catastrophic consequences

The impact statements of more than 200 victims came from creditors in China, Hong Kong, Singapore, Europe, Venezuela and Colombia. These testimonies detail the profound financial and emotional destruction caused by the collapse of FTX.

One victim wrote about her desire to continue living, explaining her loss of happiness, her ability to function every day, and her spouse’s suicide depression. Another creditor facing the birth of his first child during the FTX collapse explained the overwhelming emotional sacrifice.

Mental health effects include complex PTSD triggers, persistent depression, and suicidal thoughts among victims of fraud. Many creditors lost their homes, faced lawsuits and accumulated debts while awaiting fund recovery through bankruptcy proceedings.

The appeal process continues a legal battle

Bankman-Fried’s parents issued a statement expressing their heartbreak, vowing to continue fighting for their son. The defense attorneys have announced an immediate appeal plan following the decision on the verdict.

Kavuri, who lost $2 million in the FTX collapse, explained that the statement said it didn’t completely address the economic and emotional damage to its customers, while offering partial closure. Many creditors are waiting for their assets to recover through the ongoing bankruptcy process.

The appeal date, November 3rd, determines whether Bankman-Fried’s conviction and sentence will be raised or whether revisions are required. Kavuri emphasized that FTX creditors, not the executives involved, represent the true heroes of this financial disaster story.

Related: “I’m a Foreign Citizen”: CZ fights the $1.76 billion FTX clawback case