In a highly anticipated court verdict, Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was condemned to 25 years in prison for defrauding users. U.S. District Judge Lewis Kaplan handed down the sentence during a hearing in Lower Manhattan federal court.
FTX Founder Sam Bankman-Fried Sentenced
Judge Kaplan severely criticized the defense argument, labeling it “misleading, logically flawed and speculative.” As reported On our sister site, Bitcoinist, Kaplan highlighted Bankman-Fried’s obstruction of justice and witness tampering during his defense, which were significant factors considered in the sentencing decision.
Bankman-Fried expressed remorse in a statement, acknowledging that his series of “selfish” decisions as leader of FTX led to the stock market crash. He admitted to having “thrown it all away” and expressed regret that continues to haunt him daily.
Prosecutors initially sought a maximum sentence of 50 years, while Bankman-Fried’s legal team argued for a maximum sentence of 6 years. In November, Bankman-Fried was found guilty of seven felony charges and has since been detained at the Metropolitan Detention Center in Brooklyn.
Destroyed life plans
On Tuesday night, prosecutors presented documents containing victim statements, clarifying the impact of Bankman-Fried’s actions. One victim, whose name has been withheld, wrote a letter dated March 15, describing the destruction of her entire life and the emotional toll it took on her family.
They emphasized that they entrusted their funds to FTX as custodian, not consenting to the risks that Bankman-Fried took with their money. The victim shared the suffering that led her to depression and even suicidal thoughts.
During the trial, prosecutors revealed that Bankman-Fried had embezzled FTX client funds worth up to $8 billion. These funds were allegedly used to finance a wide range of outside interests, including political initiatives, speculative investments and financing the lifestyles of FTX executives.
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