Former FTX CEO Bankman-Fried sentenced to 25 years in prison

Sam Bankman-Fried, the founder and former CEO of cryptocurrency exchange FTX, has been sentenced to 25 years in prison in a criminal case charged with fraud and money laundering. The sentencing hearing was held in the case, which alleged that more than $8 billion of FTX customers' money went missing and that Bankman-Fried covered it up and defrauded FTX investors. Prosecutors were seeking a sentence of 40 to 50 years for Bankman-Fried, while defense attorneys were requesting a sentence of 5 to 6.5 years, arguing that it was a "first-time, non-violent offense" and that "FTX customers will be repaid." Judge Lewis Kaplan sentenced Bankman-Fried to 25 years in prison. It was reported that Bankman-Fried plans to appeal his sentence. FTX went bankrupt in November 2022 Cryptocurrency exchange FTX went bankrupt in November 2022, and it was announced that the company's CEO Sam Bankman-Fried had resigned. Bankman-Fried was detained in the Bahamas in December following a criminal complaint by the US. Bankman-Fried, who was extradited to the US on December 21, 2022, was ordered to be released on $250 million bail until the hearing. Bankman-Fried, who denied the "fraud" charges against him, claimed that he made mistakes but never intended to steal funds. Bankman-Fried's bail was revoked in August on the grounds that he tried to influence witnesses, and the former CEO was sent to a Brooklyn prison. Jury selection began on October 3 as part of the first of the criminal cases against the former CEO. In the case, Caroline Ellison, former CEO of Alameda Research, a subsidiary of FTX, Nishad Singh, a former FTX executive, and Gary Wang, the co-founder of the crypto exchange, all pleaded guilty to fraud charges. The witnesses who cooperated with prosecutors pointed to Bankman-Fried as the person who made the decisions regarding the “misuse of client funds.” Defense attorneys said that three of Bankman-Fried’s former colleagues, who admitted their guilt and agreed to cooperate with prosecutors, tailored their testimonies to incriminate Bankman-Fried in the hope of receiving lenient sentences. The jury found Bankman-Fried guilty. In her testimony in court, Bankman-Fried also argued that she acted in good faith and believed that her actions were in accordance with FTX’s policies prepared by lawyers. Bankman-Fried, who explained that lawyers were involved in important decisions at FTX, noted that the loans were also structured by lawyers. Bankman-Fried’s lawyers also stated that “poor risk management” was not a crime. In closing arguments, prosecutors asked the jury not to believe that Bankman-Fried, an MIT graduate who founded two multibillion-dollar companies, “was completely clueless.” After deliberating for more than four hours on Nov. 2, the jury found the former CEO “guilty” of seven counts, including wire fraud, securities fraud and money laundering. New York Southern District Attorney Damian Williams said Bankman-Fried “perpetrated one of the largest financial frauds in American history.” Bankman-Fried faced up to 110 years in prison under federal sentencing guidelines.