Sam “SBF” Bankman-Fried, the former CEO of FTX, has been sentenced to 25 years in prison after being convicted on seven felony charges. The sentencing hearing took place in federal court, where Judge Lewis Kaplan of the United States District Court for the Southern District of New York handed down the punishment. Bankman-Fried was the first person associated with FTX and Alameda Research to receive prison time following the collapse of the exchange in November 2022.
During the hearing, Judge Kaplan found Bankman-Fried guilty of witness tampering and perjury. He acknowledged Bankman-Fried’s social awkwardness but noted that he knew he was at fault and refused to admit it. The judge emphasized that the punishment should match the seriousness of the crime, calling it a significant offense. He criticized Bankman-Fried’s behavior during the trial, describing him as evasive and attempting to manipulate the prosecutors.
In addition to the prison sentence, Judge Kaplan suggested an $11 billion judgment. This was based on the financial losses suffered by FTX investors, lenders, and customers, which amounted to $1.7 billion, $1.3 billion, and $8 billion respectively. The courtroom was reportedly full of members of the public and officials as Bankman-Fried was brought out by the U.S. Marshals. He was wearing the uniform of the Metropolitan Detention Center in Brooklyn where he has been held since his bail was revoked.
Bankman-Fried apologized for what happened throughout the proceedings, claiming that FTX would have survived if it had not been shutdown. His attorneys portrayed him as a misunderstood genius, stating that he made decisions based on calculations rather than malice. Sunil Kavuri, a victim of the FTX collapse, testified at the hearing, representing others affected by the incident. He disputed the notion that there was no loss based on the exchange’s plans for repayment.
Assistant U.S. Attorney Nicolas Roos argued that Bankman-Fried showed no acceptance of responsibility. Judge Kaplan’s sentence fell between the recommendations from the defense attorneys and prosecutors, who suggested a maximum of 6.5 and 50 years respectively. The sentence was in line with expert predictions, taking into account the facts of the case and the amount of funds involved.
Four other individuals connected to FTX and Alameda, Gary Wang, Caroline Ellison, Nishad Singh, and Ryan Salame, who were charged in the same case as Bankman-Fried, have pleaded guilty and accepted deals. Salame, the former co-CEO of FTX Digital Markets, did not testify during Bankman-Fried’s trial and is slated for sentencing on May 1.
This is such a shocking and devastating news 😱. Sam Bankman-Fried being sentenced to 25 years in prison is truly a tough blow for him and the cryptocurrency community 💔.
It’s about time he faced the consequences of his actions.
So four others pleaded guilty and accepted deals, but he thought he could get away with it?
He should have received the maximum sentence of 50 years. This punishment is too lenient.