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A federal judge has sentenced Sam Bankman Fried, the founder of bankrupt cryptocurrency exchange FTX, to 25 years in prison after being found guilty of lying to investors and customers.
Just four months after a jury found Bankman Freed, 32, guilty of two counts of fraud and five counts of conspiracy, he faces an $11.2 billion forfeiture order.
Delivering the sentence Thursday morning, District Judge Lewis Kaplan accused Bankman-Fried of putting on a “performance” to improve his own favorability.
“When he wasn't lying, he was evasive and appalling, trying to get prosecutors to rephrase their questions,” Judge Kaplan said. Said. “I've been doing this job for almost 30 years. I've never seen a performance like that.”
Bankman Fried, once known as the “King of Cryptocurrency,” was a billionaire who appeared on magazine covers just two years ago and promoted his company by brokering lucrative deals with celebrities. Ta.
On Thursday, he sat next to his lawyer in a federal courthouse in downtown Manhattan, anxiously listening to the verdict. He appeared wearing a beige jumpsuit, which is different from your typical suit.
Bankman Fried showed little emotion throughout, including during her personal statement to Judge Kaplan. The only concern among crypto friends came after Judge Kaplan read the ruling. Bankman Freed put his hand to his face.
In this courtroom sketch, Sam Bankman Freed, second from the right, stands during a statement during sentencing in Manhattan federal court.
(AP)
The hearing marked the end of an extensive investigation and media-frenzied trial surrounding the dramatic collapse of FTX and Bankman Freed.
The lengthy hearing included testimony from the victims and some apologies from Bankman Fried.
“At the end of the day, I betrayed everyone I care about and I betrayed everything I care about,” the 32-year-old said minutes before he was sentenced. Ta.
“My useful life is probably over,” he continued. “It's been quite a while.”
Sam Bankman-Freed's parents, Barbara Freed and Alan Joseph Bankman, attended Thursday's sentencing.
(Getty Images)
Bankman Freed made his fortune through his cryptocurrency exchange FTX, which at its peak was worth $32 billion and had 1 million users. The famous tousled-haired young man was somewhat of an anomaly in the cryptocurrency world, both due to his age and his intention to use his wealth for altruistic purposes.
But that all came crashing down in November 2022. coin desk The report revealed that most of FTX's assets were held by a quantitative trading firm called Alameda Research, which Bankman Fried also ran.
The revelations sent investors and customers scrambling to withdraw their money, and it was later revealed that the company had an $8 billion hole. FTX declined as quickly as it grew, effectively going bankrupt overnight.
At sentencing, Judge Kaplan scolded Bankman Fried for showing little remorse for his victims and failing to take full responsibility for the collapse of FTX.
Last year, federal prosecutors used a trove of evidence and former FTX executives to show jurors that FTX's collapse was no fluke. It was the result of Mr. Bankman Freed's mismanagement and scheme to lie to investors, lenders, and customers and use their funds to enrich himself and his company.
“On November 15th or 16th, [Bankman-Fried] He was interviewed by a reporter who knew him well and said, “You talked a lot about good regulation, but was that just PR?” He said, “Oh, regulators are fucked up,'''' Judge Kaplan said.
“I think one of his harshest expressions was, 'I'm fucked up,'” the judge said. continuation. “Mr. Bankman Freed maintains his innocence and has the right to a trial. That's the right thing to do for everyone and I don't disagree with him. But I will be back. [Caroline Ellison’s] testimony. He knew it was wrong. ”
Caroline Ellison was the star witness in the Bankman Freed trial. Ms. Ellison is the former co-CEO of Alameda Research, a cryptocurrency trading company co-founded by Bankman Freed, and is Bankman Freed's former girlfriend. Prior to Thursday's sentencing, prosecutors asked Judge Kaplan to extend Bankman Fried's harsh sentence of at least 40 years in prison.
But Bankman Fried's lawyers took a different view, arguing that the former FTX chief had unintentionally driven the company into bankruptcy. They argued that he should not receive a maximum sentence of more than six-and-a-half years in prison.
Judge Kaplan said he would recommend to the Bureau of Prisons that Bankman-Freed serve his sentence in San Francisco, where he can be closer to his family, receive medical care and avoid the possibility of becoming a target of violence.
Damian Williams, an attorney for the Southern District of New York, praised Judge Kaplan's ruling in a statement Thursday.
Mr Williams said: “Today's sentence will prevent the defendants from committing fraud again, ensuring that justice is swiftly served and those who may be tempted to commit financial crimes. “This sends an important message that the consequences will be severe.”
