Scamming FTX Founder Sam Bankman-Fried Hit With 25 Years in Prison
Former billionaire and tech wunderkind Sam Bankman-Fried was sentenced to 25 years on Thursday for defrauding clients around the world out of billions of dollars via his crypto exchange, FTX.
Once a poster boy for the emerging virtual market, Bankman-Fried was found guilty on all charges in November, including seven federal counts of fraud and conspiracy for stealing as much as $10 billion in customer funds, transferring them to another one of his companies, Alameda Research.
The sentencing was significantly less than the one recommended by federal prosecutors, who suggested the 32-year-old be put away for upward of 40 years, or by the Probation Department, which recommended a maximum sentence of 105 years.
“I know a lot of people felt very let down, and they were very let down. I’m sorry about that. I’m sorry about what happened at every stage—things I should have done and said and things I shouldn’t have,” Bankman-Fried told the court moments before his sentencing. “I failed everyone I care about and everything I cared about too.”
In his closing words, Judge Lewis Kaplan noted that Bankman-Fried “knew it was wrong.”
“A man willing to flip a coin as to the continued existence of life on earth. Mr. Bankman-Fried knew that Alameda was spending customer funds on risky investments, political contributions, and Bahamas real estate,” said Kaplan. “The funds were not his to use.”
“People need to feel it’s fair, or we’re back to trial by combat, folks, or something like it,” Kaplan continued. “So punishment must fit the seriousness of the crime. And this … was a serious crime.”