BANKMAN-FRIED JAILED FOR 25 YEARS FOR $8 BILLION THEFT FROM FTX CUSTOMERS

Thu 28 March 2024:

On Thursday, March 28, Sam Bankman-Fried, a well-known figure in the cryptocurrency industry and the creator and CEO of FTX, an exchange for bitcoin derivatives, was sentenced to 25 years in prison.

Known in the cryptocurrency world for his trading prowess, Bankman-Fried found himself embroiled in a scandal and was recently sentenced to prison for embezzling $8 billion from FTX’s clientele.

In November 2022, the Bahamas-based cryptocurrency exchange began to falter. A rise in consumer withdrawals revealed a $8 billion deficit in FTX customers’ accounts.

Later, depositors were unable to recoup monies held within the exchange. Prior to its collapse and the disclosure of massive fraud, FTX was the world’s third-largest cryptocurrency exchange. It also had a user base of over one million.

US District Judge Lewis Kaplan issued the decision at a Manhattan court hearing.

The ruling by the court came after the 32-year-old Bankman-Fried was found guilty on November 2 on two counts of of fraud and five counts of conspiracy related to the collapse of FTX in 2022.

Judge Kaplan ahead of delivering the verdict said that Bankman-Fried “knew it was wrong.”

“He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right,” Kaplan added.

The judge also backed his verdict of sentencing the “Crypto King” to 25 years in prison by pointing out the potential danger posed by him in the future.

“There is a risk that this man will be in a position to do something very bad in the future. And it’s not a trivial risk at all,” Kaplan added.

The judge also rebuffed Bankman-Fried’s assertion that FTX clients hadn’t genuinely suffered losses. He also said that the founder of now bankrupt FTX was dishonest during his trial testimony.

Moreover, prosecutors in a court filing stated, “The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him.”

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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