NEW YORK, NY – Judge Kaplan determined substantial losses to victims in the case involving Bankman-Fried’s criminal activities, exceeding $550 million according to federal sentencing guidelines. The judge highlighted losses of $1.7 billion to investors, $1.3 billion to Alameda lenders, and $8 billion to FTX customers.

During the pre-sentencing phase, SBF’s legal team argued that no victims incurred losses, stating that all parties would be compensated through the bankruptcy proceedings. However, Judge Kaplan disputed this claim, asserting that there was indeed an actual loss sustained.

Although it has been suggested that FTX customers and creditors will be fully reimbursed, Judge Kaplan criticized this notion as misleading, logically flawed, and speculative. Despite these remarks, the judge expressed intentions to impose a prison term on Bankman-Fried that falls below the maximum sentencing guidelines.

It is important to note that judges are not obligated to strictly adhere to sentencing guidelines, allowing for discretion in determining appropriate punishments. Andrew Dietderich, a lawyer managing the bankruptcy estate of FTX, expressed optimism regarding the repayment of customers in full, emphasizing that it is an objective rather than a guarantee.

Acknowledging the work and risks involved in achieving this goal, Dietderich outlined a strategic approach to potentially realizing the objective. The road to financial recovery for FTX customers remains uncertain, but efforts are being made to navigate the challenges and work towards a favorable outcome.