The FTX founder Sam Bankman-Fried was sentenced to 25 years in prison on Thursday for a $10 billion fraud.
This mind-boggling fraud became the catalyst responsible for sinking his highly profitable cryptocurrency exchange, FTX, and a linked hedge fund, Alameda Research.
Initially, the Federal prosecutors suggested that the court sentence Bankman-Fried, to anywhere between 40-50 years, which Bankman-Fried’s attorneys countered, stating that the FTX founder should be given a lighter sentence of 5-7 years.
The attorneys also added that there is a plan where all customers affected by the poor management skills of the founder will be paid back in full.
Before passing the sentence, Judge Lewis Kaplan, who was presiding on the case, remarked, “There is a risk that this man will be in a position to do something horrible in the future. And it’s not a trivial risk at all,”.
The judge continued by expressing that during the Court hearing, Bankman-Fried never showed remorse, nor did he hear any word of remorse for the crimes he committed.
During a cross-examination by the prosecutors, the ex-CEO would occasionally become evasive of some questions, while providing false answers to others.
Back in November 2023. The FTX founder stood before a jury that unfortunately didn’t buy into the CEO’s narration of events, finding him guilty of seven criminal counts, while holding him responsible for the $10 billion stolen customer funds.
The prosecutors elaborated that Bankman-Fried created a conspiracy to use the looted customer funds to make large investments in other companies, fund political donations to both the Republicans and Democrats, repay Alameda Research’s loans, and maintain his lavish lifestyle.
According to sources, Sam Bankman-Fried is planning to appeal his conviction and sentence with hopes of getting a lighter sentencing. However, three individuals testified against the FTX founder for his crimes and their involvement with the situation.
Unfortunately, the three associates of Bankman-Fried still await their sentences for their collaboration in the fraudulent act related to the FTX and Alameda Research scandal.
Their names include Gary Wang, the co-founder and chief technology officer at FTX, Caroline Ellison, Alameda Research CEO, and Nishad Singh, the FTX engineering chief.
