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

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By Stacy Connor


FTX founder Sam Bankman-Fried was sentenced to 25 years in jail by Decide Lewis A. Kaplan on Thursday. 

Prosecutors sought a 40- to 50-year sentence for the disgraced crypto king. Bankman-Fried’s protection workforce will enchantment the conviction and sentencing.

Kaplan mentioned Bankman-Fried had proven no regret.

“He knew it was flawed,” Kaplan mentioned of Bankman-Fried earlier than handing down the sentence. “He knew it was felony. He regrets that he made a really dangerous guess in regards to the chance of getting caught. However he isn’t going to confess a factor, as is his proper.”

His dad and mom, Joseph Bankman and Barbara Fried, have been current within the courtroom.

Joseph Bankman and Barbara Fried look on outside the Federal Court after the sentencing of their son, FTX founder Sam Bankman-Fried, in New York City on March 28, 2024.

Joseph Bankman and Barbara Fried look on exterior the Federal Courtroom after the sentencing of their son, FTX founder Sam Bankman-Fried, in New York Metropolis on Thursday. (Reuters/Brendan McDermid)

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Kaplan mentioned he had discovered that FTX prospects misplaced $8 billion, FTX’s fairness traders misplaced $1.7 billion, and lenders to the Alameda Analysis hedge fund Bankman-Fried based misplaced $1.3 billion.

“The defendant’s assertion that FTX prospects and collectors will likely be paid in full is deceptive, it’s logically flawed, it’s speculative,” Kaplan mentioned. “A thief who takes his loot to Las Vegas and efficiently bets the stolen cash will not be entitled to a reduction on the sentence by utilizing his Las Vegas winnings to pay again what he stole.”

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Bankman-Fried, 32, was discovered responsible in November on two counts of wire fraud and 5 counts of conspiracy following the collapse of his crypto empire FTX in November 2022, which has been in comparison with Enron. The trade had merged belongings with sister hedge fund Alameda Analysis amid money issues, main waves of consumers to withdraw funds. Bankman-Fried was indicted the subsequent month.

Referring to his FTX colleagues, Bankman-Fried instructed the choose on Thursday, “They put a whole lot of themselves into it, and I threw that every one away. It haunts me on daily basis.”

By comparability, disgraced Theranos founder Elizabeth Holmes is serving an 11-year sentence, however confronted as a lot as 80 years in jail. Bernie Madoff was sentenced to 150 years and died in jail.

Elizabeth Holmes

Elizabeth Holmes is seen taking a stroll within the jail yard at Bryon Federal Jail Camp in Texas on her second day of being an inmate there. (SplashNews.com)

Bankman-Fried, who capitalized on an increase in bitcoin and at one level accrued an estimated $26 billion fortune, can be anticipated to be ordered to pay restitution.

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Bitcoin, which accounted for a lot of Bankman-Fried’s web value, fell as little as $15,000 and has since rebounded to the $70,000-plus stage, following the approval of a bitcoin ETF by the Securities and Trade Fee earlier this yr.

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It is unclear how the rebound in crypto, if in any respect, will play out in offering restitution to his victims.

Reuters contributed to this report.



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