The founder and former CEO of fallen cryptocurrency exchange FTX, Sam Bankman-Fried, has been sentenced to 25 years in prison after being convicted on seven fraud and conspiracy charges.
Bankman-Fried and his associates were accused of running a massive fraud through FTX and Alameda Research, resulting in customers losing billions.
Bankman-Friend To Spend 25 Years In Prison
Sam Bankman-Fried and FTX were once considered to be the pillars of the crypto space. However, Judge Lewis Kaplan’s ruling brings the curtain down on his downfall, which began with his arrest in the Bahamas. Judge Kaplan stated that Bankman-Fried did not offer a single word of remorse for the commission of terrible crimes. He called Bankman-Fried’s attempt to craft a positive and altruistic persona in the eyes of the public, in part, an act.
“BREAKING: FTX founder Sam Bankman-Fried (SBF) sentenced to 20 years in prison.”
Judge Kaplan also rejected the defense’s argument that the FTX founder was not at risk of committing future crimes. Bankman-Fried was also fined $11 billion, including forfeiture agreements to sell assets such as private jets. The judge, in pointed observations, noted,
“Mr. Bankman-Fried’s name is pretty much mud right now around the world, but he is persistent and a great marketing guy.”
Bankman-Fried To Appeal
The decision was announced after a two-hour hearing held in a Manhattan courtroom. During the trial, prosecutors, a victim of the collapse, a lawyer speaking on behalf of other affected FTX users, Bankman-Fried’s attorney, and Bankman-Fried himself delivered comments. According to Bankman-Fried’s lawyer, the former FTX CEO will appeal his conviction. Speaking about the sentencing, Damian Williams, US Attorney for the Southern District of New York, stated,
“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.”
A Simple Math Nerd
Mark Mukasey, Bankman-Fried’s attorney, told Judge Kaplan that his client does not make decisions with any malice in his heart. Instead, he makes them with math in his head, adding that anyone who really knows his client will say he is not a greedy, power-hungry fiend, just an awkward math nerd. Bankman-Fried’s attorney also highlighted Bankman-Fried’s autism and social awkwardness, and his commitment to altruism, calling him a “beautiful puzzle with a tireless work ethic and mind-blowing intelligence.,” requesting the judge not to destroy the prime of Bankman-Fried’s life.
“Don’t deprive him of the opportunity to meet a partner and have a baby.”
Bankman-Fried Concerned about FTX Customers
While speaking in court, Bankman-Fried said he was more concerned about FTX customers waiting for their money to be returned rather than his emotional life or hypothetical future kids, adding that his usual life was probably over. Bankman-Fried, dressed in a tan prison jumpsuit, spoke for several minutes and repeated his claim that there were enough assets for FTX creditors to be paid back in full.
He told the court that righting the ship following FTX’s liquidity crisis would have made for an unpleasant few weeks. However, he insisted that FTX would have survived even if Alameda Research was forced to shut down. Bankman-Fried also addressed his former friends, Nishad Singh, Gary Wang, and Caroline Ellison, and expressed regret for his role in FTX’s collapse.
“I’m sorry about what happened at every stage…at the end of the day, I failed everyone I cared about. I was responsible.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
