FTX founder Sam Bankman-Fried was sentenced to twenty-four and one-quarter years on Thursday, ending his trial for fraud. The sentence was handed down by US Judge Lewis Kaplan in New York who also ordered the payment of $11 billion to be made up by Bankman-Fried to investors and lenders he affected.
The court’s ruling happened after FTX collapsed leading to an eight billion dollar losses for individual investors. According to allegations, Sam Bankman-Fried, formerly a billionaire, did not tell the truth and showed no signs of remorse. Although prosecutors sought more time, the sentence of 24.25 years reflects the gravity of his offenses.
During the trial, he has accepted that selfish choices he made were responsible for company’s downfall. He cited bad management decisions that led to liquidity crisis as being behind FTX’s failure. His final words while acknowledging his colleagues indicated how their negative actions resulted in chaos too.
BREAKING: Sam Bankman-Fried has been sentenced to 25 years in federal prison for defrauding customers and investors.
Bankman-Fried stole $8 billion from customers of his FTX cryptocurrency exchange.
“He knew it was wrong. He knew it was criminal. He regrets that he made a very… pic.twitter.com/NatRGb4MLr
— Collin Rugg (@CollinRugg) March 28, 2024
Court’s Suggestions and Future Life of Bankman-Fried
Judge Kaplan has suggested that Bankman-Fried serve his time in a medium or low-security prison near the California Bay Area, noting his lack of social skills and previous wealthy status could make him a target in prison.
That judgment puts a lid on the saga that shook up cryptocurrencies where Sam Bankman-Fried was found guilty over multiple counts which include wire fraud and conspiracy to commit securities and commodities frauds. This case has highlighted issues about lack of adequate control within cryptocurrency sector thereby serves as a warning bell for otherwise executives.
