(UnitedHeadlines.com) – On March 28, Judge Lewis A. Kaplan sentenced the founder and former CEO of FTX, Sam Bankman-Fried, 32, to serve 25 years in prison.
In November, Bankman-Fried was found guilty of wire fraud and conspiracy related to the November 2022 collapse of what was, at the time, the second-largest cryptocurrency exchange, FTX. During the trial, prosecutors said that Bankman-Fried misappropriated customer funds, using billions of dollars he stole from the now-bankrupt FTX to fund losses at his hedge fund Alameda Research. Prosecutors alleged he continued to enrich himself, purchasing real estate and donating $100 million to political campaigns across the United States to help promote crypto-friendly legislation. At one point, Bankman-Fried, who capitalized on a rise in Bitcoin, had an estimated wealth of $26 billion. Prosecutors had sought a 40- to 50-year sentence.
Before sentencing began, Bankman-Fried apologized for the collapse of FTX, stating that he “made a series of bad decisions,” but also blamed the collapse on mismanagement.
Kaplan, before he handed down the sentence, said that while on the stand Bankman-Fried was “evasive. He said Bankman-Fried showed no remorse for his actions, stating that while Bankman-Fried knew his actions were “wrong” and “criminal,” that “he is not going to admit a thing.”
Kaplan also ordered Bankman-Fried to pay $11 billion in restitution due to FTX customers losing an estimated $8 billion, FTX’s equity investors losing about $1.7 billion, and the Alameda Research hedge fund leaders losing around $1.3 billion when FTX collapsed.
Three of those closest to Bankman-Fried, his former girlfriend, Caroline Ellison, FTX co-founder Gary Wang, and his friend Nishad Singh, all pleaded guilty to charges related to the collapse of FTX and testified during Bankman-Fried’s trial.
Bankman-Fried was sentenced to a prison near San Francisco, California.
He continues to claim he is innocent, and his defense team stated that they intend to appeal his conviction and sentencing.
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