Sam Bankman-Fried, the founder of the now-defunct FTX cryptocurrency exchange, was sentenced to 25 years in prison for stealing $8 billion from customers. The sentence was handed down by U.S. District Judge Lewis Kaplan, who rejected Bankman-Fried's claim that FTX customers did not lose money.
Kaplan found that Bankman-Fried lied during his trial testimony and showed no remorse for his actions. He imposed an $11 billion forfeiture order and authorized the government to repay victims with seized assets. Federal prosecutors had sought a sentence of 40 to 50 years, while Bankman-Fried's defense lawyer argued for a sentence of less than 5-1/4 years.
In a statement to the judge, Bankman-Fried acknowledged that FTX customers had suffered and apologized to his former colleagues. However, he did not admit to any criminal wrongdoing and vowed to appeal his conviction and sentence.
Kaplan's sentence marks the culmination of Bankman-Fried's downfall from a wealthy entrepreneur and major political donor to a convicted fraudster. The sentence sends a strong message that there are serious consequences for defrauding customers and investors in cryptocurrency markets.