Press "Enter" to skip to content

Sam Bankman-Fried Jailed For 25 Years For FTX Fraud

LIC

<!–

–>

Sam Bankman-Fried Jailed For 25 Years For FTX Fraud

Sam Bankman-Fried is expected to appeal his conviction. (File)

Disgraced cryptocurrency wunderkind Sam Bankman-Fried was sentenced to 25 years in jail on Thursday following his conviction in one of the biggest financial fraud cases in history.

US prosecutors were seeking a prison term of 40-50 years after a New York jury found Sam Bankman-Fried, known by his initials SBF, guilty in November following a five-week trial that probed the one-time high roller’s spectacular fall.

During the hearing Sam Bankman-Fried told the courtroom that he was “sorry about what happened at every stage. And there are things I should’ve done and things I shouldn’t have.”

The final sentence was meted out by US District Judge Lewis Kaplan who used the hearing to carefully walk through the financial crimes committed by Sam Bankman-Fried.

With the sentencing now done, Sam Bankman-Fried is expected to appeal his conviction.

A New York jury found Sam Bankman-Fried guilty in November following the lengthy trial that probed his stunning downfall.

Calling Sam Bankman-Fried’s seven-count conviction reflective of the defendant’s “unmatched greed and hubris,” the government’s sentencing request argued for significant jail time in light of fraud it estimates at more than $10 billion.

Moreover, a lengthy sentence is necessary to “protect the public,” argued US Attorney Damian Williams, who characterized Sam Bankman-Fried as an “adept” spin doctor capable of additional malfeasance.

Calling the government’s proposed sentence “barbaric,” Sam Bankman-Fried’s attorneys depicted their client as a diligent young man motivated by philanthropy who got in over his head.

Their portrayal is similar to the one SBF’s defense presented at trial — which was quickly rejected by jurors after just five hours of deliberation.

Sam Bankman-Fried’s attorney’s had asked for six years in prison, a sentence “that returns Sam promptly to a productive role in society,” said attorneys led by Marc Mukasey.

FTX Implosion

A graduate of the Massachusetts Institute of Technology and a billionaire before the age of 30, Sam Bankman-Fried conquered the crypto world at breakneck speed, turning FTX, a small start-up he cofounded in 2019, into the world’s second largest exchange platform.

But in November 2022, the FTX empire imploded, unable to cope with massive withdrawal requests from customers panicked to learn that some of the funds stored at the company had been committed to risky operations at Sam Bankman-Fried’s personal hedge fund, Alameda Research.

During the trial, some of Sam Bankman-Fried’s closest associates said that he was key to all the decisions that saw $8 billion vanish from FTX.

This group included Caroline Ellison, the former Alameda CEO and Sam Bankman-Fried’s on-and-off-again girlfriend, who testified that Alameda had stolen “around $14 billion” from FTX clients and that Bankman-Fried “directed me to commit those crimes.”

Filings from the prosecution and defense offered starkly different takes on Sam Bankman-Fried, the son of two well regarded law professors at tony Stanford University.

“The lack of contrition is galling,” said Williams, who took issue with the image of Sam Bankman-Fried as “selfless” and “altruistic,” as championed by the defense, noting he used funds for “luxury” real estate, donations to rub shoulders with political leaders, a Super Bowl television ad and “access to celebrities.”

The defense’s statement describes Sam Bankman-Fried as “wracked” with remorse over the implosion of FTX.

Recovered funds

Sam Bankman-Fried’s attorneys also pointed to statements from FTX’s current leaders expressing confidence that FTX customers and creditors would get back their money, saying in the brief, that “the harm to customers, lenders and investors is zero.”

That argument drew a scathing response from FTX Trading Chief Executive John Ray, who said ongoing recoveries of ill-gotten gains do not make up for fraud.

“That things he stole… were successfully recovered through the efforts of a dedicated group” of professionals “does not mean the things were not stolen,” Ray said in a letter to the court.

“What it means is that we got some of them back.”
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Mission News Theme by Compete Themes.