FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison for stealing billions of dollars from clients, the latest in a story that has changed the cryptocurrency industry.
The ruling was made by U.S. District Judge Lewis A. Kaplan in Manhattan federal court shortly after Bankman-Fried expressed regret at every turn. Last year he was charged with seven crimes, including fraud and conspiracy.
The former billionaire became a symbol of corruption and greed in the cryptocurrency world after his popular exchange FTX collapsed, exposing long-term fraud that cost clients, investors and creditors an estimated $10 billion. Bankman-Fried, 32, denied intentional wrongdoing and argued that, like his crypto empire, he was a victim of market fluctuations in 2022.
Prosecutors had sought a sentence of 50 years in prison, while Bankman-Fried’s lawyers had asked for a minimum sentence of 6.5 years. Although there is no parole in the federal system, he can be released several years early for good behavior.
Kaplan rejected Bankman-Fried’s 20-minute statement, noting that he did not express true remorse and instead focused on the seriousness of the crime. This sentence effectively ensures that the former young talent will be behind bars well beyond his 50th birthday.
“There is a risk that this person will do something very bad in the future,” Kaplan said. “This is a serious risk, not a game at all.”
