FTX Founder Sam Bankman-Fried Sentenced to 25 Years in Prison

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A US federal a judge in the Southern District of New York has ruled Sam Bankman-Friedthe founder of Cryptocurrency exchange FTX, up to 25 years in prison. In addition, Bankman-Fried was ordered to pay $11 billion in damages.

Last November, at the end of a one month trialBankman-Fried—better known as SBF—was found guilty of seven counts of corruption and conspiracy related to the fall of FTX.

The exchange was he has fallen to pieces in November 2022 after running out of money to work on removing customers. The money disappeared, the jury concluded, because Bankman-Fried committed a massive fraud in which billions of dollars flowed into his brothers’ company and were used to pay off high-risk trades, bets, mortgages, and personal loans. , political contributions, and a happy life in the Bahamas.

In a court reservation, the United States government called the case “one of the largest financial frauds in history.” Bankman-Fried showed “unprecedented greed and greed” and “disrespect for the law,” it said.

“This sentence should fully reflect the seriousness of the crime. This was a very serious case,” said Judge Lewis Kaplan, who presided over the case, before handing down the verdict. He referred to the “gross harm” done by Bankman-Fried, the “shamelessness of his actions,” and his “amazing flexibility with the truth.”

Kaplan also criticized Bankman-Fried for her behavior on the witness stand during the trial. Bankman-Fried not only perjured herself, the judge said, she was also “evasive” and “hairy” in answering the prosecution’s questions. “I’ve been doing this for about 30 years, and I’ve never seen a job like this,” Kaplan said.

When Bankman-Fried received the verdict, he stood with his head down and his hands together, his face looking impassive.

The punishment ends a a dramatic fall from grace. Between 2019 and 2022, Bankman-Fried controlled FTX at a cost of $32 billion, becoming for a time the youngest billionaire in the world. The 32-year-old has interacted with directors, politicians, sports professionals, and top artists. He won the adoration of venture capitalists, who looked at himand the media, who refer to him as “then Warren Buffett” and “The Michael Jordan of crypto.” Privately, Bankman-Fried says he told others that he wants to be the President of the United States.

In his sentencing remarks, Judge Kaplan cited political ambitions as one of the reasons for Bankman-Fried’s crimes, referring to his large donations to candidates on the left and right as “the biggest political crime in history.”

“He wanted to be a powerful political figure in this country,” Kaplan said. “The goal was power and influence.”

Instead of having a political future, for years to come, Bankman-Fried will be given a life without honor in prison.

In considering the appropriate sentence for Bankman-Fried, the judge had to consider a combination of factors beyond the specifics of the capital charges. This includes the amount of money lost to the victims, the character of the accused and his reputation, if obstruction of justice occurred, the possibility of retribution, and so on.

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