The co-founder of cryptocurrency platform FTX, Sam Bankman-Fried, has been sentenced to 25 years in federal prison for defrauding and stealing billions of dollars from clients. Judge Lewis A. Kaplan handed down the sentence in federal court in Manhattan. Despite Bankman-Fried’s claims of regret and innocence, he faced up to 110 years behind bars after being found guilty last year of seven crimes, including fraud and conspiracy.
During the trial, prosecutors accused Bankman-Fried of diverting billions of dollars from FTX to its sister hedge fund, Alameda Research, for speculative investments and political donations. As lenders began requesting their money in 2022 due to market volatility, Bankman-Fried used FTX client funds to repay them. However, an avalanche of customer withdrawals led to FTX filing for bankruptcy in November 2022 and Bankman-Fried resigning as CEO.
Judge Kaplan dismissed Bankman-Fried’s statement that he was not remorseful for his actions, stating that the seriousness of the crime required a severe punishment. “There is a risk that this man will be in a position to do something very bad in the future,” Judge Kaplan said during the sentencing hearing. With this sentence, it seems like Sam Bankman-Fried will be spending a significant amount of time behind bars for his actions.
