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Yesterday, a U.S. district judge sentenced disgraced crypto tycoon Sam Bankman Freed to 25 years in prison. Prosecutors had asked for a sentence of 40 to 50 years. Six lawyers from Bankman Freed argued the case.
SBF, once the CEO of FTX, a cryptocurrency fund that rose to fame and fell into disaster, was found guilty of fraud in November and held responsible for $10 billion in lost customer deposits. If Bankman Freed completes his sentence, he will be 57 years old when he is released from prison, but experts say it is unlikely he will serve the full term.
There were words. A sharp-tongued Judge Lewis Kaplan explained his reasoning for the sentence, starting with the serious charge of perjury.
- Kaplan said Bankman Freed lied to jurors during the trial and intentionally obstructed justice.
- The judge also noted the defendant's apparent lack of remorse and “extraordinary flexibility” with the truth.
Bankman Freed's lawyers argued that he is “not making decisions with malicious intent in his heart.” He thinks about mathematics in his head and makes decisions. ”
- Bankman Fried spoke about her former business partners who testified against her during the trial, saying that together they “built something beautiful.” Then he said: It bothers me every day. ”
- Still, Judge Kaplan was undeterred, saying he was at risk of committing further crimes if released.
On the scale of a notorious fraudster's prison sentence…This is somewhere in the middle. Elizabeth Holmes was sentenced to 11 years in prison for committing fraud at blood testing company Theranos. Bernie Madoff, the mastermind behind a multibillion-dollar pyramid scheme, has died in prison after serving a 150-year sentence.
Looking ahead…Bankman Freed plans to appeal the conviction and sentence. Meanwhile, a group of former FTX investors has filed a proposed class action lawsuit against the law firm that represented FTX in its bankruptcy proceedings and the celebrities who promoted the failed exchange.—CC
