Home News Sam Bankman-Fried gets 25 years in jail for multi-million dollar FTX scam

Sam Bankman-Fried gets 25 years in jail for multi-million dollar FTX scam

14
0

Important facts:
  • Apart from the punishment, an order was also given to confiscate 11.2 billion US dollars.

  • Judge Lewis Kaplan would suggest a medium security prison for SBF to serve his sentence.

The former executive director of the failed FTX exchange, Sam Bankman-Fried (SBF), was sentenced to 25 years in prison this Thursday, March 28, for defrauding investors and consumers of that exchange house.

At the sentencing hearing, the judge in the case, Lewis Kaplan, ordered that SBF serve the sentence in a United States federal prison. He said before passing sentence that anyone convicted today risks doing “something very bad in the future”. “And that’s no small risk,” report CNN.

With a sentence of 25 years, this is half the sentence that United States prosecutors were seeking, who wanted SBF to spend at least half a century behind bars. To commit fraud.

In addition to the sentence, Judge Kaplan also ordered the forfeiture of $11.2 billion. Although they later admitted that no compensation would be given to users, With so many victims, this would be “impractical”.

Before the sentence was announced, Bankman-Fried spoke at the hearing and limited herself to expressing remorse for what had happened. “A lot of people feel really disappointed, and they feel really disappointed, and I’m sorry. I’m sorry for what happened on every level. And there are things I should have done and things like that Which I shouldn’t have done,” the convicted man said today.

According to Judge Kaplan, “there was never a word of remorse for the terrible crimes” he committed against the investors. Also Bankman-Fried “knew it was wrong.”

Judge Kaplan said during the sentencing hearing that I would recommend a medium security gel for SBF or in any lower security facility deemed appropriate by the United States Bureau of Prisons.

Until November 2022, Bankman-Fried led the FTX cryptocurrency exchange, which was once one of Binance’s main competitors. That platform collapsed as a result of poor practices which led to fraud among thousands of investors, Which lost several billion dollars.

Judge Kaplan himself assured that the loss of US$1.7 billion for FTX investors and US$1.3 billion for lenders to Alameda Research, the financial arm of the exchange, was a fundamental part of the collapse.

Kaplan also indicated that the loss to FTX customers is approximately $8 billion.

LEAVE A REPLY

Please enter your comment!
Please enter your name here