Key takeaways:
- Sam Bankman-Fried, the founder of FTX, was found guilty in November and was formally sentenced to 25 years in jail on Thursday.
- One of the most contentious episodes in the history of the digital asset market will probably always be the fall of FTX.
Sam Bankman-Fried (SBF), the founder of FTX, was found guilty in November and formally sentenced to 25 years in jail on Thursday. The former crypto superstar was found guilty of seven fraud charges related to the demise of the exchange he built for digital assets.
Both FTX and Bankman-Fried were once major players in the crypto space. But today’s news is the ultimate decision that led to his collapse, which started with his arrest in the Bahamas in December 2022. Judge Lewis Kaplan conducted the sentencing hearing in Manhattan, continuing to oversee the case.
One of the most contentious episodes in the history of the digital asset market will probably always be the fall of FTX. Furthermore, the company’s illicit activities constituted some of the biggest financial crimes in US history. Naturally, the CEO and creator of the company have come to represent those unlawful activities.
FTX founder Sam Bankman-Fried was sentenced to 25 years in prison, more than 450 days after his apprehension. The same judge who oversaw Bankman-criminal Fried’s case presided over today’s session. Before the hearing, the result had been a point of contention for both parties.
The judge recommended an additional $11 billion in damages to SBF in addition to his prison sentence. According to him, lenders lost $1.3 billion, consumers lost $8 billion, and FTX investors lost $1.7 billion.
The prosecution had asked for a 40–50 year prison sentence for Bankman-Fried. Alternatively, SBF’s legal council asked the 32-year-old former CEO to serve a prison term ranging from 64 to 78 months. As you can see, in light of Kaplan’s judgment today, the latter is now down one.
In 2023, a jury found Bankman-Fried guilty of seven charges of fraud. These accusations specifically center on his theft of client property while managing the crypto exchange and his dishonesty towards the company’s creditors and investors. In all, Bankman-Fried was responsible for stealing about $8 billion in customer assets.
