Apr 12, 2024

Former FTX CEO Sam Bankman-Fried Sentenced to 25 Years in Jail

  • Sam Bankman-Fried, the former CEO and founder of FTX, received a twenty-five-year prison sentence for committing financial crime. So, he was guilty of stealing investors’ and creditors’ funds, reaching up to $8 billion in damages.
  • Bankman-Fried, in his statement, claimed responsibility for the unfortunate event while also admitting that his “useful” life was over.

FTX founder and former CEO Sam Bankman-Fried received a 25-year prison sentence, according to a federal judge’s ruling on Thursday. He was found guilty of fraud and conspiracy scheme charges.

The now-collapsed crypto exchange was once one of the biggest in the industry, rivaling those of Binance and Coinbase. However, everything went down the drain, mainly with the misappropriation of customer funds. His legal troubles started with his arrest in December 2022 in the Bahamas. Moreover, the sentencing was held in Manhattan, with Judge Lewis Kaplan presiding over the case as he had always done.

Sam Bankman-Fried Receives 25 Years Sentence

The fall of the FTX crypto exchange oversaw one of the biggest financial crimes in the United States. Following many controversies, Sam Bankman-Fried, also known as SBF, became the face of the legal battles that soon ensued. Apparently, the sentencing came after more than 450 days of being apprehended since his arrest in the Bahamas.

The prosecutors had initially requested that SBF spend between 40 and 50 years in prison. On the other hand, SBF’s legal council requested between 64 and 78 months in jail for the embattled crypto founder. Sam Bankman-Fried was initially convicted on seven charges in 2023, including deceit of creditors and investors and stealing customers’ assets. This resulted in more than $8 billion of assets being stolen from the crypto exchange’s coffers.

Judge Lewis Kaplan said Bankman-Fried never said “a word of remorse for the commission of terrible crimes.” Despite complimenting SBF as ”a great marketing guy,” Judge Lewis Kaplan said, “Mr. Bankman-Fried’s name is pretty much mud right now around the world.”

Many other legal personalities have reacted to the outcome of the case, including Damian Williams, U.S. Attorney for the Southern District of New York. According to Willams, the sentence against SBF was deserved and will prevent him from committing future crimes.

“Today’s sentence will prevent the defendant from ever again committing fraud and is an important message to others who might be tempted to engage in financial crimes that justice will be swift, and the consequences will be severe. The scale of his crimes is measured not just by the amount of money that was stolen, but by the extraordinary harm caused to victims, who in some cases had their life savings wiped out overnight,” he said.

Sam Bankman-Fried Reaction to His Sentence

Immediately after receiving his sentence, Bankman-Fried reacted, emphasizing that his “useful” life was already over. Furthermore, he stated that he was more concerned about FTX customers, creditors, and investors getting their money back than his “hypothetical future kids” or emotional life.

Although he accepted responsibility for what happened to FTX, he argued that the crypto exchange would have survived. “I’m sorry about what happened at every stage…at the end of the day, I failed everyone I cared about… I was responsible,” he added.

Adam Moskowitz, the attorney who represents the class action lawsuit, said Bankman-Fried and his team had been helpful. “I would ask on behalf of the victims that you honorably and respectfully consider [that],” he said.

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