New York: Former billionaire and FTX cryptocurrency exchange founder Sam Bankman-Fried has been sentenced to 25 years in prison for orchestrating a multi-billion dollar fraud scheme. U.S. District Judge Lewis Kaplan handed down the sentence on Thursday after rejecting Bankman-Fried’s claims and accusing him of lying during his trial testimony.
The sentencing marks the culmination of Bankman-Fried’s dramatic downfall, following FTX’s collapse in 2022, which prosecutors dubbed as one of the largest financial frauds in U.S. history. Bankman-Fried, 32, was found guilty on seven fraud and conspiracy counts by a jury on November 2.
During the sentencing hearing, Kaplan criticized Bankman-Fried for showing no remorse and reiterated that he had knowingly committed criminal acts. The judge emphasized that FTX customers had suffered substantial losses, totaling $8 billion, along with significant losses to equity investors and lenders.
Prosecutors sought a much harsher sentence of 40 to 50 years, while Bankman-Fried’s defense argued for a shorter term. In his statement to the judge, Bankman-Fried expressed regret for the harm caused to customers and acknowledged the consequences of his actions.
Bankman-Fried’s defense portrayed him as a hardworking individual who made mistakes but did not act with malicious intent. However, prosecutors painted a different picture, describing the scale of criminality involved in the case as massive and pervasive.
Throughout the trial, Bankman-Fried maintained his innocence, stating that he did not intend to defraud anyone. Nevertheless, the judge found him guilty of lying during his testimony and implicated him in using customer funds to cover losses at Alameda Research, a hedge fund he founded.
Bankman-Fried’s affluent background, coupled with his meteoric rise in the cryptocurrency industry, has drawn significant attention. Despite his philanthropic endeavors and political contributions, prosecutors accused him of embezzling customer funds for years.
Bankman-Fried has been detained at the Metropolitan Detention Center in Brooklyn since August 2023, following allegations of witness tampering. His sentencing concludes a high-profile case that has underscored the risks and consequences associated with financial fraud in the cryptocurrency sector.
