YEREVAN (CoinChapter.com) — Sam Bankman-Fried, co-founder of FTX, has been sentenced to 25 years in prison after being found guilty of embezzling billions of dollars from customers. This concludes a saga that gripped and cast a shadow over the cryptocurrency sector.
Sam Bankman-Fried Could Have Got 110 Years, But…
U.S. District Judge Lewis A. Kaplan handed down the sentence in a Manhattan federal court. Bankman-Fried, who could have faced up to 110 years for seven counts including fraud and conspiracy, apologized for his actions before receiving his sentence.
Once celebrated as a billionaire pioneer in the crypto industry, Bankman-Fried’s fall from grace began with the implosion of his FTX exchange. This event unveiled a protracted fraud that defrauded customers of around $10 billion. Despite Bankman-Fried’s denial of intentional wrongdoing, attributing his and his company’s downfall to market crashes in 2022, the case against him was strong.
Prosecutors had recommended a sentence of up to 50 years, while Bankman-Fried’s defense argued for a mere 6.5 years. Notably, the federal system does not allow parole, though early release for good behavior is possible.
Judge Kaplan was unswayed by Bankman-Fried’s attempt at an apology, questioning the sincerity of his remorse and emphasizing the gravity of his crimes. Kaplan also expressed concern over the potential future risks posed by Bankman-Fried, sentencing him not only to prison but also ordering him to forfeit more than $11 billion. Kaplan suggested Bankman-Fried serve his time in a facility close to his family in California.
SBF Will Try To Appeal Against The Verdict
Bankman-Fried plans to appeal both his conviction and sentence. The trial revealed that he diverted billions from FTX to its affiliate, Alameda Research, for risky investments, political donations, and lavish real estate. This led to the company’s bankruptcy in November 2022 following a liquidity crisis.
In a courtroom appeal, Bankman-Fried’s attorney, Marc Mukasey, highlighted his client’s philanthropy and support for fellow inmates. However, this portrayal of Bankman-Fried as a benevolent, albeit socially awkward, figure was not convincing to the judge or prosecutors, who underscored the pervasive criminality within his business operations.
Bankman-Fried attempted to shift some blame onto the company’s administrators post-bankruptcy, arguing that customer funds could have been returned more expediently. Still, his remarks did little to sway the court’s decision.
