Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has been sentenced to 25 years in prison for his involvement in a significant fraud and conspiracy case.
The sentencing, delivered in Manhattan federal court on Thursday, comes as a notable development in the downfall of his crypto exchange and related hedge fund.
Federal prosecutors had sought a longer sentence, aiming for 40 to 50 years, while Bankman-Fried’s defense team proposed a shorter term of five to six-and-a-half years.
Judge Lewis Kaplan emphasized the severity of the situation, stating that there is a genuine concern about the potential future actions of the 32-year-old.
The purpose of the sentence, according to Kaplan, is to incapacitate Bankman-Fried for a considerable period. Prior to sentencing, Bankman-Fried expressed remorse for his actions, acknowledging the impact on his colleagues at FTX and the broader community.
He lamented the loss of trust and apologized for the repercussions at every stage of the case.
FTX, once valued at $32 billion, faced significant fallout from the fraud, with Bankman-Fried assuming responsibility as its CEO. The sentencing reflects a significant setback for the cryptocurrency industry and serves as a reminder of the consequences of fraudulent practices in the financial sector.
