Crypto-King Sam Bankman-Fried Gets 25 Years Imprisonment for Fraud

The co-founder of the failed crypto exchange FTX, Sam Bankman-Fried, also known as SBF, has been sentenced to 25 years in prison for defrauding customers and investors of his now-bankrupt firm.

The verdict confirms the downfall of the ex-billionaire, who initially rose to lime light as a prominent advocate for cryptocurrency before his company's abrupt collapse in 2022. 

Subsequently, it was revealed that the 32-year-old had embezzled billions from the exchange's clients prior to its collapse.

But he was convicted by a New York jury in November on charges including multiple counts of wire fraud and conspiracy to commit money laundering.

Judge Lewis Kaplan, during the sentencing hearing today provided a harsh review stating that it was obvious Bankman-Fried was driven by the desire to be politically influential.

Despite "protestations of sorrow" about customer losses, Bankman-Friend had expressed "never a word of remorse for the commission of terrible crimes" Judge Kaplan said.

Bankman-Fried did not appear to take direct responsibility for the fallout of FTX's demise as he spoke briefly in court.

"They've been failed by more people than I can count," he said, speaking of the exchange's customers. "It's been excruciating to watch."

While acknowledging that a lot of people had suffered, he added: "I don't think the reasons for that have been properly told."

As he spoke clearly and quietly, Bankman-Fried stuck to his narrative that FTX had the holdings to repay customers at the time of its collapse.

He spoke about the pain he caused former colleagues, whom he praised, including Caroline Ellison and Gary Wang, who testified against him at trial.

"I know a lot of people feel really let down. They all built something really beautiful, they threw themselves into it and then I threw it all away. It haunts me every day," he said.

While 25 years constitutes a serious prison sentence, it is far less than Bankman-Fried could have received.

The charges carried a potential prison sentence of more than 100 years under official government guidelines.

Federal prosecutors in New York this month told the judge such a long term was not necessary.

But they requested at least 40 years, arguing that Bankman-Fried had committed a massive fraud, misappropriating more than $8bn (£6.3bn) in customer money, while showing "brazen disrespect" for the law.

Bankman-Fried's team, which is expected to appeal, had argued for a lighter sentence of roughly five to 6.5 years.

They stated that he had no history of violence and was a first-time offender, highlighting his mental health challenges. They also argued that customers stood to regain substantial amounts through a plan undergoing review in bankruptcy court. 

Numerous individuals, ranging from former FTX clients to acquaintances of his family, submitted letters to Judge Kaplan, the federal judge in New York overseeing the case, in an attempt to influence his decision.

Bankman-Fried is not the First Crypto Executive to be Sentenced.

Karl Sebastian Greenwood, who worked with so-called 'Cryptoqueen' Ruja Ignatova, was sentenced to 20 years in prison last year for his role convincing millions of people to invest more than $4bn in a fraudulent currency, OneCoin.

Also, one of the lawyers involved in the scheme received a 10-year sentence.

Letters to the court also compared Bankman-Fried to other high-profile fraudsters such as Theranos founder Elizabeth Holmes, who was sentenced to more than 11 years in prison.

Bernie Madoff, who was convicted of a $64bn securities fraud Ponzi scheme, was ordered to spend 150 years behind bars. As of last year, victims in that scheme had recovered more than 90% of their money, according to prosecutors.