FTX founder Sam Bankman-Fried sentenced to 25 years for crypto fraud

FTX founder Sam Bankman-Fried was sentenced to 25 years in jail on Thursday for the huge fraud and conspiracy that doomed his cryptocurrency trade and a associated hedge fund.

The sentence in Manhattan federal court docket was considerably lower than the 40 to 50 years in jail that federal prosecutors wished for Bankman-Fried, and way more than the 5 to six-and-a-half years that his attorneys had urged.

“There’s a threat that this man can be in place to do one thing very unhealthy sooner or later,” Decide Lewis Kaplan earlier than he sentenced the 32-year-old. “And it is not a trivial threat in any respect.”

Kaplan mentioned the sentence has “the aim of disabling him to the extent that may appropriately be executed for a major time frame.”

Earlier than he was sentenced, Bankman-Fried spoke contritely concerning the actions that landed him in court docket.

“They constructed one thing actually stunning and I threw all of that away,” he mentioned of his co-workers at FTX, an organization as soon as valued at $32 billion. “It haunts me daily.”

“Lots of people really feel actually let down. They usually have been very let down,” he mentioned. “And
I am sorry about that. I am sorry about what occurred at each stage.”

“It has been excruciating to observe this all unfold,” he informed Kaplan. “Prospects do not deserve this stage of ache.

“I used to be the CEO of FTX and I used to be accountable.”

Manhattan U.S. Legal professional Damian Williams, in a press release after the sentencing, mentioned, “Samuel Bankman-Fried orchestrated one of many largest monetary frauds in historical past, stealing over $8 billion of his prospects’ cash.”

“His deliberate and ongoing lies demonstrated a brazen disregard for his prospects’ expectations and disrespect for the rule of legislation, all in order that he may secretly use his prospects’ cash to increase his personal energy and affect,” Williams mentioned.

The highest prosecutor mentioned that the sentence not solely will forestall Bankman-Fried from committing fraud once more, but in addition is “an essential message to others who could be tempted to interact in monetary crimes that justice can be swift, and the results can be extreme.”

Bankman-Fried’s household, in a press release, mentioned, “We’re heartbroken and can proceed to struggle for our son.” Each Joseph Bankman and Barbara Fried, who’re Stanford Regulation professors, have been in court docket for the sentencing listening to.

Earlier than he sentenced SBF, Kaplan mentioned he rejected “everything of defendant’s argument there was no loss” at FTX, calling that declare “deceptive, logically flawed and speculative.”

After Kaplan dominated on the rule of thumb enhancement, a number of victims of Bankman-Fried talked concerning the harm to their lives from his crimes.

Bankman-Fried, who was sporting a beige jailhouse jumpsuit, appeared on the victims as they talked to the choose.

A jury in November convicted Bankman-Fried of seven counts and held him accountable for the roughly $10 billion of buyer deposits that went lacking in 2022.

The costs included wire fraud and conspiracy to commit wire fraud towards FTX prospects and towards lenders to sister hedge fund Alameda Analysis; conspiracy to commit securities fraud and conspiracy to commit commodities fraud towards FTX traders; and conspiracy to commit cash laundering.

Jurors reached their verdict after solely about three hours of deliberations. For a high-profile monthlong trial that concerned practically 20 witnesses and lots of of displays, consultants informed CNBC they’d by no means seen such a speedy resolution.

Bankman-Fried plans to enchantment his conviction and sentence.

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