According to moneywatch, Sam Bankman-Fried was given a sentence of 25 years in prison for his role in the collapse of the FTX cryptocurrency exchange.
This is Megan Cerullo.

This was edited by Alain Sherter.

As on the 28th of March, 2024, at 7:39 PM Eastern Daylight Time, CBS News

On Thursday, former bitcoin billionaire Sam Bankman-Fried was given a sentence of 25 years in prison for his role in the commission of one of the most significant financial crimes in the history of the United States federal government.

During the month of November, Bankman-Fried, who was 32 years old at the time, was found guilty on seven counts of fraud, conspiracy, and money laundering, in addition to those charges of conspiracy to commit commodities and securities fraud.

According to the federal sentencing guidelines, Bankman-Fried could have been sentenced to up to 110 years in prison; however, the prosecution had requested that Judge Lewis Kaplan sentence Bankman-Fried to between 40 and 50 years in jail for what they referred to as a “historic fraud.” The legal team for Bankman-Fried had advocated for a sentence of no more than six and a half years, stating that it was highly unlikely that he would commit another crime.

Kaplan stated that the 25-year sentence reflected “that there is a risk that this man will be in position to do something very bad in the future.” This statement was made at the hearing that took place on Thursday. And it is not a risk that is negligible in any way.” The judge stated that the procedure was carried out “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time.”

The United States Attorney for the Southern District of New York, Damian Williams, stated that the sentence conveys “an important message to others who might be tempted to engage in financial crimes that justice will be swift, and the consequences will be severe.” Williams made this statement in reference to the punishment.

The legal representatives for Bankman-Fried contended that their client had never intended to deceive customers, and that as a result, Judge Kaplan ought to be more lenient.

The defense attorney Marc Mukasey was quoted as saying, “Sam was not a ruthless financial serial killer who set out every morning to hurt people,” according to Reuters. According to the report, Mukasey referred to his client as a “awkward math nerd” who attempted to return the money that customers had paid to FTX after the company went bankrupt.

Although it is anticipated that Bankman-Fried would file an appeal against his conviction, Andrey Spektor, a former federal prosecutor, stated that there is a little probability that the verdict will be overturned against him. Spektor stated, “There is nothing anyone can do about that,” and went on to say that although Bankman-Fried could have received a sentence that was even longer, “I don’t think SBF and his family are celebrating a 25-year term.”

Although there were legal experts who believed that Bankman-Fried’s education and professional contacts would result in a greater degree of leniency, there were also those who anticipated a more severe punishment.

I guess you could say that I was somewhere in the middle. I immediately came to the realization that this time — and this crime — was different, and that the judge was genuinely going to hold him accountable for his acts,” said Anat Alon-Beck, a professor of business law at Case Western Reserve University.

Bankman-Fried’s sentence was likened to that of Elizabeth Holmes, a disgraced entrepreneur from Silicon Valley who is currently serving a sentence of 11.5 years in jail for scamming investors. Alon-Beck made this comparison for clarification. Alon-Beck stated that the sentence for SBF was more than twice as long as the average penalty.

Reports from Reuters indicate that Bankman-Fried expressed his regret to his former coworkers at FTX at the sentence hearing. “They invested a significant amount of themselves in it, and I threw away all of that effort.” Bankman-Fried expressed her regret to the judge, saying, “I’m sorry about that.” “It haunts me every day,” she said. I am sorry for all that unfolded at each and every level. What I ought to have done and said, as well as what I ought not to have done and said.

The conviction of Bankman-Fried occurred in the fall of 2022, following the shocking collapse of FTX, the cryptocurrency trading platform that he had co-founded and previously headed as CEO. The collapse occurred in the midst of a $8 billion shortage in money. He was accused of using the money from his depositors to prop up his struggling hedge fund, as well as using the money to acquire luxury properties in the Caribbean and to make gifts to a variety of causes. The trial was held and he was found guilty of all of these charges.
FTX was previously the second-largest cryptocurrency exchange in the world, enabling users to buy and sell dozens of different virtual currencies. At the same time, Bankman-Fried’s wealth was reported to be more than $30 billion. Bankman-Fried, who was awash in billions of dollars of cash from investors, purchased the naming rights to an arena that is used by the Miami Heat of the National Basketball Association (NBA) and ran an advertising during the Super Bowl to promote FTX.
Nevertheless, the decline in the value of cryptocurrencies in 2022 was a crippling event for FTX, which finally led to its demise. In the past, Alameda Research, which is a subsidiary of FTX, had made billions of dollars in cryptocurrency investments that had experienced a significant decline in value. It was alleged by the prosecution that Bankman-Fried attempted to strengthen Alameda’s financial sheet by using monies from FTX customers.
Bankman-Fried was the subject of testimony from three former FTX associates who had already pleaded guilty to offenses linked to the case. Caroline Ellison, who had previously been in a romantic relationship with Bankman-Fried, was one of the individuals who claimed that he had put her under pressure to commit fraud.