In a stunning conclusion to one of the biggest financial fraud cases in U.S. history, Sam Bankman-Freed, the once-celebrated founder of the now-defunct cryptocurrency exchange FTX, was sentenced to 25 years in prison on Thursday. U.S. District Judge Lewis Kaplan handed down the sentence in a Lower Manhattan federal courtroom, rejecting Bankman-Freed's claims that FTX customers did not suffer substantial losses and accusing him of obstruction of justice and witness tampering during his defense.
Bankman-Freed, 32, was convicted on seven criminal counts in November for his role in defrauding FTX users of $8 billion. In a statement before the court, the former billionaire wunderkind struck an apologetic tone, admitting to making a series of "selfish" decisions while leading FTX. "It haunts me every day," he said, wearing a beige jailhouse jumpsuit.
Prosecutors had sought a sentence of up to 50 years, while Bankman-Freed's legal team argued for no more than 6½ years. The defense cited mental health struggles and Bankman-Fried's alleged generosity in his personal life as reasons for leniency. However, Judge Kaplan found the defense's arguments misleading, logically flawed, and speculative.
The impact of Bankman-Freed's actions on FTX users was made clear in victim statements submitted to the court. One man, whose name was redacted, wrote, "My whole life has been destroyed. I have 2 young children, one born right before the collapse. I still remember the weeks following where I would stare blankly into their eyes, completely empty inside knowing their futures have been stolen through no fault of our own." Another victim described how the loss of funds had affected numerous life plans, including a wedding, and led to thoughts of suicide.
The sentencing marks the final chapter in the dramatic downfall of Sam Bankman-Fried, once hailed as a crypto prodigy. As he begins his 25-year prison sentence, the victims of his massive fraud are left to grapple with the devastating consequences of his actions.
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Sep 26 20242 mins