Cryptocurrency exchange founder and billionaire, Sam Bankman-Fried, apologized to users and former colleagues – Photo: Reuters
Manhattan: The American court sentenced cryptocurrency exchange FTX’s founder and billionaire, Sam Bankman-Fried, to 25 years in prison for embezzling $8 billion from users.
According to Reuters, after a hearing in Manhattan, US District Judge Leos Kaplan rejected Sam Bankman-Fried’s claims of fraud and conspiracy, sentencing him to 25 years in prison, stating that users had not been deprived of their money.
On November 2, 2023, the American court declared 32-year-old Sam Bankman-Fried guilty of fraud and conspiracy in the 2022 collapse of FTX, making him a convicted felon in one of the biggest financial fraud cases in US history.
Before issuing the verdict, Judge Leos Kaplan stated that Bankman-Fried did not show any remorse for his crimes, acknowledging that they were wrong but not admitting his guilt.
During the sentencing, Bankman-Fried stood with his hands bound and was escorted by US Marshals out of the courtroom at the end of the hearing.
Sam Bankman-Fried admitted during the judge’s 20-minute remarks that FTX users had faced difficulties and asked for forgiveness from his former colleagues.
The verdict stated that Bankman-Fried had been convicted of embezzling $8 billion from FTX users, causing equity capital of $1.7 billion for FTX equity investors and $1.3 billion in losses for Alameda Research.
The judgment emphasized that the claim of full repayment to FTX users and equity investors was completely misleading, logically false, and delusional – likening Bankman-Fried’s case to being sentenced for theft from a successful thief who had shifted his loot to Las Vegas.
Judge Kaplan highlighted that Bankman-Fried had lied during the trial by claiming that his fund had been used by FTX for users’ deposits.
Federal prosecutors had sought a 40 to 50-year sentence for Bankman-Fried, while his lawyer, Mark Moxley, argued that a sentence of 1 to 5 years or 4 years would be appropriate.
Addressing the judge, Bankman-Fried said that users were facing difficulties, clarifying that he did not mean to cause harm, expressing regret for what he had said.
Referring to the former employees of FTX, Bankman-Fried told the judge that he had worked hard with them but had ultimately let them down, which always weighed heavily on him.