Sam Bankman-Fried, Co-Founder of failed cryptocurrency exchange FTX, was sentenced to 25 years in prison on Thursday for fraudulently misusing billions of dollars in customer funds that led to the platform’s collapse in 2022, as per a US Department of Justice release.
The sentence, which was handed down by U.S District Court Judge for the Southern District of New York Lewis Kaplan, comes in stark contrast to the once-celebrated 32-year old, who in recent years stood to champion the crypto cause.
As per a report by Reuters, the sentence emitted no admission of guilt on Bankman’s part. “He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right” the report quoted Kaplan. The Judge ordered Bankman-Fried to forfeit $11 billion in order to repay the victims. He also authorized the government to seize properties belonging to the accused, as well as those owned by FTX entities.
Prosecutors, however, pushed for a harsher 40-50 year sentence, noting that his actions had resulted in losses, for individuals as well as entities across the world, to the tune of more than $10 billion. Bankman’s lawyer, on the other hand, sought a sentence closer to 5 years, attempting to portray him as someone who “makes decisions with math in his head,” stating that he was a non-violent, first-time offender. He further noted that customers could recover a substantial part of their funds by a plan currently working through bankruptcy court.
Bankman-Fried was previously found guilty of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering. During the trial, it was also revealed that he had used customer funds worth $8 billion to purchase properties, making donations and completing other investments.
Bankman-Fried has vowed to appeal his conviction and sentence. He is expected to serve his time at a medium security federal prison near San Francisco.
Also Read:
- What Are The Charges Levelled By U.S. Against Former FTX CEO Sam Bankman-Fried?
- Ex-CEO Of FTX Sam Bankman-Fried Arrested In The Bahamas After U.S. Presses Charges
- Binance Cryptocurrency Exchange Platform Executives Detained In Nigeria Amid Economic Turmoil Over Depreciating Currency Value
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