Sam Bankman-Fried, the brains behind the FTX exchange, has been handed a 25-year prison term for his role in a substantial fraud conspiracy linked to his cryptocurrency exchange and a connected hedge fund. Despite the federal prosecutors’ request for a heftier 40 to 50-year sentence, the punishment was sternly more severe than the 5 to 6.5 years advocated by Bankman-Fried’s legal team. In addition to jail time, the 32-year-old must also part with a substantial $11 billion in forfeitures.
Sam Bankman-Fried, while donning a beige jailhouse jumpsuit, appeared contrite before the sentence was passed. He acknowledged his wrongdoing but suggested that the vast sum of money lost was due to a “liquidity crisis” or “mismanagement,” not fraud. The FTX founder took responsibility for his actions and expressed remorse for the adverse effects of his unlawful conduct on his former colleagues and customers.
Sam Bankman-Fried’s actions were not seen favorably by Judge Kaplan, who described his court performance as the most deceitful he had witnessed in his 30-year tenured experience. He asserted that the verdict served to incapacitate Bankman-Fried for a significant period. The FTX founder’s claim of ensuring the refund of the customers’ investments got lost in the shuffle.
After the verdict, Manhattan’s leading prosecutor, Damian Williams, called the event one of history’s most substantial financial frauds. The prosecutor commended the sentence, stating it would shield Bankman-Fried from further criminal activities and encourage others to eschew financial crimes, noting the repercussions otherwise are severe. The verdict resulted in sorrow for Bankman-Fried’s family, both Joseph Bankman and Barbara Fried attended the sentencing hearing and remain determined to fight for their son.