The cryptocurrency world’s great star Sam Bankman-Fried has been jailed for 25 years following his conviction in one of the biggest financial fraud cases ever, initially sought by US prosecutors at 40-50 years.
Bankman-Fried was found guilty on all seven charges including conspiracy to commit wire fraud and mail fraud after five weeks of trial by a jury in which he stood accused. The sentence came after it had been heard that Bankman-Fried’s actions led to FTX, his cryptocurrency exchange, suffering an $8 billion loss as a result. Despite expressing some regrets over his actions, United States District Judge Lewis Kaplan claimed that there was “no remorse” from Bankman-Fried and expressed concerns about recidivism possibilities he might represent.
In addition, Kaplan meticulously reviewed the financial crimes committed by Bankman-Fried during sentencing whilst his defense team announced their intention to appeal against this verdict contending their client acted out of philanthropy and ended up being trapped in events beyond control.
BREAKING: Sam Bankman-Fried has been sentenced to 25 years in federal prison for defrauding customers and investors.
— Collin Rugg (@CollinRugg) March 28, 2024
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
FTX Crushed: What Happened Next?
Bankman Fried rapidly rose through the ranks of crypto trading making FTX one of leading exchanges before its collapse in November 2022. Fear gripped customers after allegations were made regarding misused funds at Alameda Research which is also managed by Bankman-Fried.
Testimonies from former associates like Caroline Ellison formerly CEO Alameda have placed blame on him as he is said to be behind disappearing $8 billion from FTX. Although his lawyers depicted him as repentant and advocated for a lesser sentence, prosecutors and current FTX management discredited these assertions. They underscored ongoing efforts to retrieve stolen monies with the warning that successful recoveries do not absolve the initial theft.
This decision marked Bankman-Fried’s fall from grace as well as warned others of dire consequences arising from financial fraud in cryptocurrency industry.
