Former FTX CEO Sam Bankman-Fried has been sentenced to 25 years in prison by New York’s Southern District Court. Judge Lewis A. Kaplan delivered the ruling this morning.
In a statement, Bankman-Fried expressed remorse for his actions and the harm caused to people. He acknowledged the pain inflicted on customers and accepted the likelihood of spending a significant time in prison. Judge Kaplan justified the harsh sentence by suggesting that Bankman-Fried posed a potential risk for future wrongdoings and the need to incapacitate him for an extended period.
Bankman-Fried plans to appeal the decision. His defense team had requested a sentence of five to 6.5 years, citing his charitable acts and dedication to others. They also mentioned a bankruptcy court hearing where customers and creditors were promised repayment. Prosecutors, however, sought a much longer sentence of 40 to 50 years to reflect the seriousness of the crimes.
Nicknamed SBF, Bankman-Fried was arrested in the Bahamas in December 2022 and found guilty on seven charges, including wire fraud and money laundering. The trial revealed that he used FTX funds to support Alameda Research, and his girlfriend at the time verified this claim.
Alameda had borrowed over $8 billion from FTX customers’ accounts, leading to FTX’s collapse and subsequent bankruptcy in 2022. Bankman-Fried admitted to not safeguarding the funds adequately and expressed regret for not investigating the companies more thoroughly. He acknowledged making mistakes and expressed a desire to rectify them if possible.
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