Sam Bankman-Fried, the founder of the FTX cryptocurrency exchange, was sentenced to 25 years in federal prison for defrauding customers and investors. The sentencing took place at the Manhattan Federal Court, where Judge Lewis Kaplan presided over the hearing. Bankman-Fried was convicted of stealing $8 billion from customers of the now-bankrupt FTX exchange.
During the trial, Judge Kaplan stated that Bankman-Fried had committed perjury by falsely testifying that he had no knowledge of Alameda, the company associated with FTX, spending customer deposits. The judge also noted that Bankman-Fried engaged in witness tampering by communicating with the former FTX general counsel.
In a remorseful statement, Bankman-Fried expressed regret over the collapse of FTX, saying, “The collapse of FTX haunts me every day.” He acknowledged that he should have taken different actions and expressed sorrow for letting down customers and employees. Bankman-Fried also acknowledged the pain inflicted on FTX’s customers and accepted responsibility as CEO.
With his prison sentence looming, Bankman-Fried acknowledged that his “useful life is probably over,” recognizing the severity of the situation. The judge emphasized that the losses incurred by FTX customers, equity investors, and hedge fund lenders amounted to billions of dollars, ruling out the possibility of restitution through ill-gotten gains.
