Disgraced ‘crypto king’ Sam Bankman-Fried is sentenced to 25 years over FTX fraud scheme
A federal judge has sentenced Sam Bankman-Fried, the founder of the bankrupt cryptocurrency exchange FTX who was found guilty of lying to investors and customers, to 25 years in prison.
Just four months after a jury found Bankman-Fried, 32, guilty of two counts of fraud and five counts of conspiracy, District Judge Lewis Kaplan said this case was a first in his 30-year career.
“When not lying, he was evasive, hair-splitting, trying to get the prosecutors to rephrase questions for him,” Mr Kaplan said. “I’ve been doing this job for close for 30 years. I’ve never seen a performance like that.”
Bankman-Fried, once known as the “King of Crypto”, was a billionaire who appeared on the covers of magazines and brokered lucrative deals with celebrities to promote his company just two years ago. But on Thursday he stood beside his attorneys in a federal courthouse in downtown Manhattan, anxiously hearing his sentencing. His parents, Barbara Fried and Allan Joseph Bankman, also attended.
It marked the end of an extensive investigation and media-frenzied trial in the case of the dramatic fall of FTX and Bankman-Fried.
“At the end of the day, I failed everyone that I care about and everything that I care about, too,” the 32-year-old said, just minutes before he was sentenced.
“My useful life is probably over,” he continued. “It’s been over for a while now.”
Bankman-Fried had acquired mass wealth through his crypto exchange FTX, which at its height was worth $32bn and had a million users. The famously touseled-haired youngster was somewhat of an anomaly in the world of crypto both for his age and his intention to use his wealth for altruistic purposes.
But that all came crashing down in November 2022 when a CoinDesk report revealed that most of FTX’s assets were held by a quantitive trading company that Bankman-Fried also ran called Alameda Research.
The revelation sent investors and customers scrambling to withdraw their funds which later exposed an $8bn hole in the company.
As quickly as FTX grew, it fell – becoming essentially bankrupt overnight.
At the sentencing, Mr Kaplan scolded Bankman-Fried for having little to no remorse for the victims, and failing to take full responsibility.
Last year, federal prosecutors used a trove of evidence and former executives from FTX to show a jury that the fall of FTX was no accident, in fact it was the result of Bankman-Fried’s mismanagement and plan to lie to investors, lenders and customers and use their money to grow his wealth and the company’s.
“On November 15 or 16, [Bankman-Fried] was interviewed by a reporter he knew well who said, ‘You said a lot of stuff about good regulations — was that just PR too?’ He said: ‘Yeah, f*** regulators,’” Mr Kaplan said.
