Sam Bankman-Fried, founder of the FTX cryptocurrency exchange, has been sentenced to 25 years in prison by a judge in New York for orchestrating an $8 billion theft from FTX customers.
🚨 BREAKING: JUDGE SENTENCES SAM BANKMAN-FRIED TO 25 YEARS IN PRISON FOR MULTI-BILLION DOLLAR FTX FRAUD pic.twitter.com/M9HotmBma2
— Bitcoin Magazine (@BitcoinMagazine) March 28, 2024
The sentencing, handed down by U.S. District Judge Lewis Kaplan, comes after Bankman-Fried was found guilty on seven fraud and conspiracy counts related to FTX’s collapse in 2022. Judge Kaplan rejected Bankman-Fried’s claims that customers did not lose money and accused him of lying during the trial.
During the sentencing hearing, Bankman-Fried tried to express regret for the losses suffered by FTX customers, saying he’s “sorry about what happened.” However, Judge Kaplan emphasized the severity of the crime, stating that FTX customers lost $8 billion, equity investors lost $1.7 billion, and lenders to Bankman-Fried’s hedge fund lost $1.3 billion.
The judge also criticized Bankman-Fried’s dishonesty during the trial, particularly regarding his knowledge of the misappropriation of customer funds. Federal prosecutors had sought a much longer sentence, highlighting the scale and impact of the financial fraud.
Bankman-Fried’s rapid rise in the cryptocurrency industry, came crashing down as the extensive embezzlement scheme of FTX was uncovered, in which his fraudulent actions led to significant losses for investors and customers. Many believe this 25 year sentence is injustice, as Judge Kaplan said today before the official ruling, “I have limited my findings on obstruction to support the finding – there may be more. The total offense level is 60 – once you cross 43, it cannot go higher. The guideline is life in prison. But the maximum is 1320 months in this case.”
Renowed whistle blower and cybersecurity expert Edward Snowden commented on the news, stating “holy shit he gave him less than Chelsea Manning (35 years) for a waaaaay worse crime.”
The FTX founder was also the Democrat party’s second-biggest individual donor in the 2021/2022 election cycle (donating over $39,800,000).