Corrupt crypto magnate Sam Bankman-Fried has been sentenced to spend a quarter of a century in prison after being convicted of embezzling $12 billion from customers.
The downfall of Bankman-Fried’s FTX cryptocurrency exchange is now regarded as one of the largest financial fraud cases in history.
During a court session in New York, Judge Lewis Kaplan denounced the 32-year-old, stating that his outward persona as a “good guy” was merely a facade.
The truth, according to the judge, is that while Bankman-Fried has expressed regret for the losses suffered by customers, he has shown no remorse for his egregious crime.
Federal prosecutors had sought a sentence of 40 to 50 years. Although that request was not granted, Bankman-Fried will remain incarcerated until his late fifties.
However, Bankman-Fried’s legal team has indicated they will appeal the conviction.
Clad in light brown prison attire during the proceedings, Bankman-Fried described his actions as “bad decisions” rather than selfish ones.
At its peak, FTX boasted one million users and was valued at nearly $50 billion, with daily trading volumes reaching up to $18 billion.
Bankman-Fried, often referred to as “SBF,” was seen as the quirky but approachable face of cryptocurrency, enjoying endorsements from celebrities like NFL star Tom Brady.
However, late last year, Bankman-Fried was found guilty following a five-week trial and was ordered to repay $12.3 billion to customers, $2.61 billion to investors, and $2 billion to lenders.
During his sentencing, Bankman-Fried expressed remorse for his actions, acknowledging that he had squandered the opportunity to build something meaningful.
His defense team portrayed him as a well-intentioned individual who had made mistakes and argued for a more lenient sentence.
Despite this, Judge Kaplan was unsympathetic, highlighting the lack of remorse from Bankman-Fried and the risk of him reoffending.
The collapse of FTX was attributed to massive withdrawal requests from customers, who discovered that funds held by the company had been used for risky ventures at Bankman-Fried’s personal hedge fund.
Bankman-Fried’s associates testified that he was instrumental in the decisions leading to the disappearance of billions of dollars from FTX.
While Bankman-Fried’s attorneys claimed that ongoing efforts were underway to recover lost funds, FTX’s current leaders emphasized that the harm caused by the fraud was undeniable, regardless of any subsequent recoveries.
