Damage Control: Prosecutors Reveal Bankman-Fried’s Plan For Image Rehabilitation After FTX Fallout

March 18, 2024

As the countdown to Sam Bankman-Fried’s sentencing, the co-founder of the defunct FTX crypto derivatives platform approaches its final stretch of just ten days, prosecutors have unveiled a series of elaborate schemes reportedly concocted by the embattled mogul. These revelations shed light on Bankman-Fried’s desperate attempts to evade imprisonment in the aftermath of his arrest.

Attached to the U.S. government’s sentencing memorandum, a Google document exposed a startling compilation of “random and probably bad ideas” attributed to Bankman-Fried. These notions, conceived in a bid to salvage his beleaguered public image, offer insight into the desperate measures undertaken by the embattled crypto mogul in the wake of FTX’s dramatic collapse and his subsequent arrest.

The concept outlined various tasks, such as embracing the narrative of “the lawyers were in a shitty situation, and I feel really bad about that; and like most people do, they reacted poorly to difficult circumstances.” Additionally, it suggested appearing on Tucker Carlson’s show and publicly declaring affiliation with the Republican party. Subsequently, it proposed three bulleted ideas, including coming out against the “woke agenda” and highlighting how a legal cartel undermines entrepreneurs to mask lawyer incompetence.

Other intriguing ideas proposed by the once “golden boy of crypto” include emphasizing the message “I’m really glad the Chapter 11 team has stepped in, they’re great, and even better I have funding that can help make customers more whole while the Chapter 11 team does what is needed to clean things up.” Additionally, suggestions involve arranging an interview with Michael Lewis on platforms like ABC, engaging in a head-to-head debate with Matt Levine on Odd Lots, and embracing the narrative of tail risk crashes while highlighting the improbable nature of the event. Other proposals include conveying a message of “Alameda was incompetent” and adopting a strategy of radical honesty on Twitter, delving into both the “gory” details of what happened and the subsequent lawyer missteps.

The sentencing memorandum revealed that the Google document suggests a “significant likelihood” of Bankman-Fried committing another fraud if released back into society. “That is not just speculation. In the days following FTX’s bankruptcy, and even after the defendant had been indicted, he mused about launching ‘Archangel LTD,’ which would be an alternative to FTX’s bankruptcy and would result in the re-launching of an exchange,” prosecutors alleged.

Bankman-Fried is scheduled for his sentencing on March 28 after he was convicted in November 2023 on fraud and money laundering charges.

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