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Bankman-Fried Gets 25-Year Term For $8 Billion Financial Fraud

Updated: Mar 29

Sam Bankman-Fried was sentenced to 25 years in prison for stealing $8 billion from customers of the now-bankrupt FTX cryptocurrency exchange he founded U.S. District Judge Lewis Kaplan handed down the sentence after rejecting Bankman-Fried's claim that FTX customers did not actually lose money and finding that he lied during his trial testimony, Reuters reports. A jury found Bankman-Fried, 32, guilty on Nov. 2 on seven fraud and conspiracy counts stemming from FTX's 2022 collapse in what prosecutors have called one of the biggest financial frauds in U.S. history. The judge said Bankman-Fried has shown no remorse. "He knew it was wrong," Kaplan said. "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."


Bankman-Fried acknowledged during 20 minutes of remarks to the judge that FTX customers had suffered and he offered an apology to his former FTX colleagues - but did not admit criminal wrongdoing. He will appeal his conviction and sentence. The sentence marked the end of Bankman-Fried's fall from an ultra-wealthy entrepreneur and major political donor to the biggest trophy in a crackdown by U.S. authorities on malfeasance in cryptocurrency markets. Prosecutors had sought a sentence of 40 to 50 years. "There are serious consequences for defrauding customers and investors," said U.S. Attorney General Merrick Garland. Prison consultants estimated that Bankman-Fried was likely to serve from 17 to 20 yearsl, due to credits for classes and good behavior that can shave time off one’s sentence. This means he will likely be close to 50 when he re-enters society, reports the Wall Street Journal.

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