Sam Bankman-Fried, founding father of the FTX cryptocurrency alternate, has been sentenced to 25 years in jail by a decide in New York for orchestrating an $8 billion theft from FTX clients.
🚨 BREAKING: JUDGE SENTENCES SAM BANKMAN-FRIED TO 25 YEARS IN PRISON FOR MULTI-BILLION DOLLAR FTX FRAUD pic.twitter.com/M9HotmBma2
— Bitcoin Journal (@BitcoinMagazine) March 28, 2024
The sentencing, handed down by U.S. District Choose Lewis Kaplan, comes after Bankman-Fried was discovered responsible on seven fraud and conspiracy counts associated to FTX’s collapse in 2022. Choose Kaplan rejected Bankman-Fried’s claims that clients didn’t lose cash and accused him of mendacity in the course of the trial.
Throughout the sentencing listening to, Bankman-Fried tried to specific remorse for the losses suffered by FTX clients, saying he is “sorry about what occurred.” Nevertheless, Choose Kaplan emphasised the severity of the crime, stating that FTX clients misplaced $8 billion, fairness traders misplaced $1.7 billion, and lenders to Bankman-Fried’s hedge fund misplaced $1.3 billion.Â
The decide additionally criticized Bankman-Fried’s dishonesty in the course of the trial, significantly concerning his information of the misappropriation of buyer funds. Federal prosecutors had sought a for much longer sentence, highlighting the size and impression of the monetary fraud.
Bankman-Fried’s fast rise within the cryptocurrency business, got here crashing down because the in depth embezzlement scheme of FTX was uncovered, by which his fraudulent actions led to important losses for traders and clients. Many imagine this 25 yr sentence is injustice, as Choose Kaplan mentioned at the moment earlier than the official ruling, “I’ve restricted my findings on obstruction to help the discovering – there could also be extra. The full offense stage is 60 – when you cross 43, it can’t go increased. The rule of thumb is life in jail. However the most is 1320 months on this case.”Â
Renowed whistle blower and cybersecurity skilled Edward Snowden commented on the information, stating “holy shit he gave him lower than Chelsea Manning (35 years) for a waaaaay worse crime.”
The FTX founder was additionally the Democrat get together’s second-biggest particular person donor within the 2021/2022 election cycle (donating over $39,800,000).
