FTX cryptocurrency exchange founder Sam Bankman-Fried has been sentenced to 25 years in prison by a New York judge for orchestrating the theft of $8 billion from FTX customers.
🚨 BREAKING NEWS: Judge sentences Sam Bankman to 25 years in prison for multibillion-dollar FTX fraud. pic.twitter.com/M9HotmBma2
— Bitcoin Magazine (@BitcoinMagazine) March 28, 2024
The sentence, handed down by U.S. District Judge Lewis Kaplan, comes after Bankman-Fried was found guilty on seven counts of fraud and conspiracy related to the 2022 collapse of FTX. Judge Kaplan rejected Bankman-Fried’s claim that his clients had not lost money and condemned him. During his trial he lied.
At the sentencing hearing, Bankman-Fried attempted to express regret for the losses suffered by FTX customers, saying she was “sorry for what happened.” But Judge Kaplan emphasized the seriousness of the crimes, saying FTX customers lost $8 billion, stock investors lost $1.7 billion and Bankman-Fried hedge fund lenders lost $1.3 billion.
The judge also criticized Bankman-Fried’s dishonesty during the trial, particularly in relation to his knowledge of misappropriation of client funds. Federal prosecutors had called for a much longer sentence, emphasizing the scale and impact of the financial fraud.
Bankman-Fried’s rapid rise in the cryptocurrency industry came crashing down when FTX’s extensive embezzlement scheme was revealed, and his fraudulent activities resulted in significant losses for investors and customers. Many people believe this 25-year sentence is unfair. Before handing down his formal ruling today, Judge Kaplan said: I can’t go up any further. The guideline is life imprisonment, but in this case the maximum is 1,320 months.”
Edward Snowden, a well-known whistleblower and cybersecurity expert, commented on the news, saying, “Less than Chelsea Manning (35 years) for a truly worse crime.”
The FTX founder was also the Democratic Party’s second-largest individual donor in the 2021/2022 election cycle (donating over $39.8 million).