NEW YORK: Sam Bankman-Fried, the former chief executive of the now-bankrupt cryptocurrency exchange FTX, has been sentenced to 25 years in prison by Judge Lewis Kaplan in a Manhattan courtroom. Bankman-Fried, 32, was convicted of fraud and conspiracy to launder money late last year, marking one of the largest financial fraud cases in history.
Prosecutors had pushed for a harsher sentence of 40 to 50 years, citing Bankman-Fried’s alleged lack of remorse and a lifestyle characterized by “unmatched greed and hubris.” Despite arguments from Bankman-Fried’s defense team seeking a more lenient sentence of approximately seven years, Judge Kaplan handed down the substantial penalty.
Just two years ago, Bankman-Fried was on the brink of becoming a prominent figure in the US, with FTX valued at $32 billion and his influence extending into politics and finance. However, revelations of financial instability within his companies triggered a rapid downfall. FTX declared bankruptcy shortly after reports emerged, and Bankman-Fried’s personal wealth plummeted.
During the highly publicized trial, prosecutors alleged that Bankman-Fried misappropriated customer funds for personal gain, leading to the collapse of FTX. Despite maintaining his innocence, Bankman-Fried’s defense faltered when he took the stand and faced a challenging cross-examination.
The trial also saw damning testimony from Bankman-Fried’s associates, including his former girlfriend Caroline Ellison, who accused him of directing fraudulent activities at FTX. The jury unanimously found Bankman-Fried guilty on all seven counts of fraud and conspiracy.
