Former crypto tycoon Sam Bankman-Fried, founder of the FTX cryptocurrency exchange, has been sentenced to 25 years in federal prison for defrauding customers of $8bn. The 32-year-old was found guilty on seven fraud and conspiracy counts related to the collapse of FTX in 2022, which prosecutors have described as one of the largest financial frauds in US history. US District Judge Lewis Kaplan handed down the sentence at a Manhattan court hearing, dismissing Bankman-Fried’s claim that customers did not suffer any losses and accusing him of lying during his trial testimony.
During the sentencing, Judge Kaplan emphasized that Bankman-Fried was fully aware of the wrongdoing and the criminal nature of his actions. The judge stated that Bankman-Fried’s regret was primarily due to underestimating the likelihood of being caught, but he refused to admit any guilt. Kaplan justified the severity of the sentence by highlighting the risk that Bankman-Fried could pose in the future, stating that it was not a trivial concern.
Bankman-Fried, who stood silently with his hands clasped, had previously expressed that his useful life had been over for some time. The 25-year sentence, although less than the 40-50 years sought by prosecutors, reflects the gravity of the crime committed. The judge’s decision demonstrated a balance between a strong stance and some flexibility, possibly influenced by arguments made by Bankman-Fried’s lawyers and family, who claimed his intentions were always to do good.
Bankman-Fried had presented himself as a proponent of effective altruism, advocating for the best ways to help others through charitable donations. However, prosecutors revealed that his responsible image concealed years of embezzling customer funds. They accused him of victimizing tens of thousands of individuals and companies across multiple continents over an extended period.
