FTX's Sam Bankman-Fried sentenced to 25 years

Thu, 28 Mar 2024 12:23:09 GMT
BBC News - Technology

The crypto exchange co-founder was convicted last year of stealing $8bn from investors

Sam Bankman-Fried, co-founder of the failed crypto exchange FTX, has been sentenced to 25 years in prison for defrauding customers and investors of his now-bankrupt firm.

Before reading the sentence on Thursday, Judge Lewis Kaplan provided a harsh assessment of Bankman-Fried's behaviour, saying he had lied during his testimony at trial when he claimed he was unaware until the last minute that his companies were taking money entrusted to them for safe-keeping by customers and using it for other purposes.

Though Bankman-Fried had made "Protestations of sorrow" about customer losses, he had uttered "Never a word of remorse for the commission of terrible crimes", he added.

While 25 years constitutes a serious prison sentence, it is far less than the more than 100 years Bankman-Fried could have received under official government guidelines.

Bankman-Fried's team, which is expected to appeal, had argued for a lighter sentence of roughly five to 6.5 years.

Former federal prosecutor Mitchell Epner, now a lawyer at Rottenberg Lipman Rich, said he was "Very surprised" by the ruling, noting that Bankman-Fried could potentially be released from prison in about 13 years.

In his sentencing remarks, Judge Kaplan said what could amount to a life sentence was unnecessary but that Bankman-Fried must receive a punishment sufficient to prevent him from committing future crimes.

Judge Kaplan said he would not recommend Bankman-Fried serve his sentence in a maximum security prison because the court had no reason to believe he posed a threat of violence.

Bankman-Fried's case has been closely watched by other crypto executives and firms facing charges.

Everyone got duped by Sam Bankman-Fried's big gamble.

Summarized by 79%, original article size 1700 characters