FTX co-founder Sam Bankman-Fried has been sentenced to 25 years in federal prison for defrauding and stealing billions of dollars from clients of the cryptocurrency platform. US District Judge Lewis A. Kaplan handed down the sentence in federal court in Manhattan, despite Bankman-Fried’s claims of regret for the collapse of FTX, which revealed a fraud of about $10 billion. The convicted man faced up to 110 years in prison after being found guilty last year of seven crimes, including fraud and conspiracy.
Bankman-Fried, 32, initially denied knowingly committing fraud and blamed the 2022 market crashes for the downfall of FTX. However, Judge Kaplan dismissed Bankman-Fried’s statement as lacking true remorse and focused on the seriousness of the crimes. He expressed concerns about the risk of Bankman-Fried committing more offenses in the future.
During the trial, prosecutors accused Bankman-Fried of diverting billions of dollars from FTX to Alameda Research, a sister hedge fund, for speculative investments, political donations, and real estate purchases. As lenders began demanding their money back in 2022, Bankman-Fried used FTX client funds to repay them. The situation escalated with customer withdrawals leading to FTX filing for bankruptcy in November 2022 and Bankman-Fried resigning as CEO.