Sam Bankman-Fried Sentenced to 25 Years in Prison for FTX Fraud

Disgraced former CEO of cryptocurrency exchange FTX was in federal court for sentencing on seven criminal counts Thursday

NEW YORK, NEW YORK – AUGUST 11: Former FTX CEO Sam Bankman-Fried arrives for a bail hearing at Manhattan Federal Court on August 11, 2023 in New York City. Federal prosecutors are asking U.S. District Court Judge Lewis Kaplan to revoke Bankman-Fried's bail and to be jailed until his October criminal trial. Bankman-Fried who has pleaded not guilty to multiple conspiracy and fraud charges was accused of witness tampering after the New York Times published a story featuring personal documents of Caroline Ellison, former Alameda Research CEO. Judge Kaplan will also hear arguments on the gag order placed on Bankman-Fried that was placed as part of his bail agreement for the alleged witness tampering. (Photo by Michael M. Santiago/Getty Images)

A federal judge on Thursday sentenced disgraced crypto CEO Sam Bankman-Fried to 25 years in prison.

Bankman-Fried — the once high-flying “crypto king” who hobnobbed with the rich and powerful — was convicted in November of stealing billions from customers of the FTX cryptocurrency exchange and defrauding investors and lenders in his investment firm, Alameda Research.

Now 32, the one-time billionaire and big political donor returned to court to on Thursday to learn his fate.

Bankman-Fried, standing with his hands clasped, told the judge before sentencing Thursday that he was haunted every day by what he had thrown away. “I was responsible for FTX, and its collapse is on me,” he said during a 20-minute statement, The Wall Street Journal reported. A lot of people were let down, he said, adding, “I’m sorry about that.”

Prior to the hearing, prosecutors pointed to SBF’s age in asking U.S. District Judge Lewis Kaplan to throw the book at Bankman-Fried by giving him a sentence of 40-to-50 years in prison.

“There is a significant likelihood that if the defendant is released back into society at a young enough age he will have the opportunity to engage in another fraud,” prosecutors said in a court filing.

U.S. Attorney Damian Williams accused SBF of masterminding “one of the biggest financial frauds in American history,” CNBC reported.

The seven criminal counts Bankman-Fried was convicted of carry a maximum sentence of 110 years.

SBF’s sentence puts him behind master swindler Bernie Madoff in the annals of white collar fraud sentences. Madoff died in prison in 2021 while serving a 150-year sentence.

But it places him with other financial scoundrels, like former WorldCom CEO Bernard Ebbers and former Tyco International CEO Dennis Koslowski, who were both also hit with 25-year sentences after their convictions, The Journal noted.

Bankman-Fried’s lawyers sought a sentence of between five and a half and six and a half years, also pointing to his youth. They argued that he is young enough to offer something positive to society on the other side of his time behind bars, pointing to his autism, his deep remorse and his charitable works as reasons for a lenient sentence, The Journal reported.

They also argued that customers, lenders and investors would get back the money they lost, a claim that many who lost out since FTX imploded say has not yet happened.

Marc Mukasey, his lawyer, told the judge that Bankman-Fried wasn’t a “ruthless financial serial killer” who sought to hurt people.

“Sam Bankman-Fried does not make decisions with malice in his heart,” Mukasey said in court, according to the Journal. “He makes decisions with math in his head.”

Bankman-Fried has said he plans to appeal his his conviction.

Comments

One response to “Sam Bankman-Fried Sentenced to 25 Years in Prison for FTX Fraud”

  1. mary jackson Avatar
    mary jackson

    After loosing $60k to this binary crypto investment in 2022 I don’t think I’d ever trust any form of crypto investment platform again, luckily for me I was able to recover my stolen crypto assets through this incredible hacker who understands everything about the blockchain network. It was an emotional moment for me but this hacker literally saved my life, like he was able to pull back all my transactions in a matter of some few hours and I got the exact amount I lost. I would advise anyone in the same situation to not panic cuz digital assets can be recovered, contact him on Contacthackadviser at G mail C0m.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.