Disgraced crypto mogul Sam Bankman-Fried has been sentenced to 25 years in prison for his involvement in a massive fraud scheme that saw him steal over $8 billion from FTX customers. However, there is a possibility that Bankman-Fried could be released earlier, potentially serving as little as 12.5 years.
Bankman-Fried, 32, was convicted of federal crimes and is not eligible for parole. Nevertheless, his sentence could be reduced through good behavior and completion of prison rehabilitation programs, according to defense lawyer Mark Bini from Reed Smith. The federal First Step Act, signed into law by President Trump in 2018, allows for sentence reductions for non-violent offenders like Bankman-Fried, who is a first-time convict.
However, any misconduct or violation of the terms of his release, as Bankman-Fried previously demonstrated by leaking personal writings of his former lover and business associate Caroline Ellison, could result in him serving the full 25-year sentence, warned Bini.
Another potential avenue for sentence reduction is through extraordinary reasons, such as medical issues, as suggested by former prosecutor Jordan Estes. Since the pandemic, courts have been more inclined to grant early release if a substantial portion of the sentence has been served.
US District Judge Lewis Kaplan recommended that Bankman-Fried be incarcerated in a medium-security prison near his family’s residence in Northern California. The judge also indicated that the Bureau of Prisons could consider a lower-security facility, given the non-violent nature of Bankman-Fried’s crimes. The final decision on his placement will be made by the Bureau of Prisons in the coming months.
Bankman-Fried was also ordered to pay $11 billion in restitution and forfeit assets to cover the hefty fine. Prior to his sentencing, he expressed remorse for his actions, acknowledging his “bad decisions” and the disappointment he caused to those he cared about.
