The former cryptocurrency entrepreneur told ABC News that he “did everything he could from prison” to make up for the loss of billions in customer funds.
Monday 1 April 2024 14:46, United Kingdom
Sam Bankman Freed says he is “haunted” every day by what he “lost” after being jailed for stealing billions of dollars from his clients.
of Disgraced crypto entrepreneur was the chief executive of FTXit suddenly went bankrupt November 2022 – Millions of users have their accounts frozen and funds worth $10bn (£7.9bn) lost.
He was sentenced last week to 25 years in prison. After a New York jury found him guilty of fraud and money laundering, prosecutors described it as “one of the largest financial frauds in American history.”
In his first comments since being jailed, the 32-year-old said he regretted it “of course”.
“Every day I worry about what was lost,” he told ABC News in an email from Brooklyn's Metropolitan Detention Center.
“That's pretty much what I think about every day,” he added.
“I never meant to hurt anyone or take anyone's money,” he continued. “But I'm the CEO of FTX and I was responsible for what happened to the company. And when you take responsibility, it doesn't matter why it went bad.
“I would give anything if I could repair even some of the damage. I'm doing the best I can from prison, and it's very frustrating that I can't do more.”
“I've never thought that what I do is illegal,” he reiterated, adding, “But I've tried to hold myself to a high standard, and I certainly don't hold myself to that standard.” It wasn't met,” he added.
“I have seen and heard the despair, frustration and sense of betrayal of thousands of customers. They deserve to be paid in full at current prices,” he continued, adding that he “felt the pain” of his colleagues. . I threw away what I had poured my life into. ”
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“Incompetence and greed”: crypto tycoon’s prison sentence marks the end of an era
The meteoric rise and even precipitous fall of Sam Bankman Freed
Prosecutors say Mr. Bankman Freed misappropriated funds to further his quest for influence and dominance in new industries, costing customers, investors and lenders billions of dollars in losses in the Caribbean. It said it illegally used funds from FTX depositors to cover expenses, including the purchase of luxury real estate. Suspected bribery of Chinese officials and commercial aircraft.
At a sentencing hearing in Manhattan, Judge Lewis Kaplan said the businessman lied on the stand when he claimed he had no knowledge that his client's funds were being used in this way.
The judge also said Bankman Freed's claims that victims would receive full refunds were “misleading and logically flawed.”
“A thief who successfully transports his loot to Las Vegas and gambles the stolen money is not entitled to a reduced sentence by using his Las Vegas winnings to repay the stolen money,” Judge Kaplan wrote.
The judge said the sentence reflected “the risk that this man will be in a position to do something very bad in the future.”
He added that it was “with the aim of incapacitating him, to the extent reasonably possible, for a significant period of time”.
Bankman Fried also expressed remorse in a rambling statement shortly before sentencing.
“I feel like a lot of people are really disappointed, and they're very disappointed, too. And I'm sorry for that. I'm sorry for what happened every step of the way,” he told the court.
“My life may be over. It's been a long time since I was arrested.”
Enriched with billions of dollars in investors' cash, Bankman Freed has made money from Super Bowl ads and celebrities from stars such as quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David. rode on the crest of success, including endorsements.
However, after the 2022 cryptocurrency price crash, Bankman Fried, who was one of the biggest donors to Joe Biden's 2020 presidential campaign, lost control of FTX's hedge fund affiliate known as Alameda Research. They tried to plug the hole in their balance sheet.
