New York, NY – A former crypto exchange co-founder, Sam Bankman-Fried, has been sentenced to 25 years in prison after defrauding customers and investors of his now-defunct firm. This marks a significant downfall for the once high-profile figure in the crypto world, whose company FTX collapsed in 2022 amidst allegations of stealing billions from customers.
Bankman-Fried’s legal team plans to appeal the conviction, as his parents express heartbreak over the situation and vow to fight for their son. Prior to sentencing, the 32-year-old apologized for letting down many people and acknowledged the mistakes that led to the demise of FTX, once one of the world’s largest crypto exchanges.
The judge’s ruling comes after a New York jury found Bankman-Fried guilty of wire fraud and conspiracy to commit money laundering last year. He was accused of misusing more than $8 billion from customers for personal gains, such as buying property and making political donations, leading to the firm’s collapse.
In a statement, Judge Lewis Kaplan criticized Bankman-Fried for lying about his involvement in the financial misconduct, stating that he knew his actions were criminal. The judge emphasized the need for a punishment that deters him from committing future crimes, ordering Bankman-Fried to forfeit $11 billion to compensate victims.
While some prosecutors argued for a longer sentence, Bankman-Fried’s team advocated for a lighter punishment citing his non-violent, first-time offender status and mental health struggles. The ruling was met with mixed reactions from former customers, with some feeling the sentence was fair while others believed it did little to compensate for their losses.
Bankman-Fried’s case has drawn comparisons to other high-profile fraudsters in the crypto world, such as Karl Sebastian Greenwood and Bernie Madoff. Despite the challenges ahead, Bankman-Fried remains apologetic for his actions, expressing regret for the impact on his customers and former employees. As the case unfolds, industry executives and firms closely monitor the outcomes in the ever-evolving landscape of crypto-related crimes.