FTX founder Sam Bankman-Fried sentenced to 25 years in prison for crypto fraud; to forfeit more than $11 billion
“I’m sorry about that. I’m sorry about what happened at every stage.”
In a dramatic turn of events, Sam Bankman-Fried, the once-revered entrepreneur behind the bankrupt FTX cryptocurrency exchange, has been sentenced to 25 years in prison by Judge Lewis Kaplan. This decision marks the final chapter in the downfall of the former billionaire prodigy, known widely as SBF.
At the heart of the matter lies the accusation of Bankman-Fried siphoning a staggering $8 billion from customers of the now-defunct FTX exchange he established. Judge Kaplan’s ruling, delivered at a Manhattan court hearing, dismisses Bankman-Fried’s defense that FTX clients hadn’t incurred actual losses and establishes that he perjured himself during trial proceedings, Reuters reported.
“He knew it was wrong,” Kaplan said before the ruling. “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.”
Following a jury’s conviction on November 2 on seven counts of fraud and conspiracy relating to FTX’s 2022 collapse, Bankman-Fried, aged 32, now faces the consequences of what prosecutors dub as one of the most significant financial frauds in American history.
In addition to the hefty prison term, Bankman-Fried will forfeit over $11 billion. Judge Kaplan, in his assessment, highlighted Bankman-Fried’s lack of contrition, stating, “He knew it was wrong… 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.”
Sporting a beige short-sleeve jail T-shirt, Bankman-Fried, during his address to the judge, acknowledged the hardships suffered by FTX customers and tendered an apology to his former colleagues, yet refrained from confessing to criminal misconduct.
Judge Kaplan’s scathing remarks during sentencing underscored Bankman-Fried’s demeanor throughout the trial, remarking:
“When not lying, he was evasive, hair-splitting, trying to get the prosecutors to rephrase questions for him. I’ve been doing this job for close for 30 years. I’ve never seen a performance like that.”