FTX founder Sam Bankman-Fried ordered to forfeit $11bn

Family of Sam Bankman-Fried expresses heartbreak as sentencing unfolds.

• Sam Bankman-Fried, FTX founder, sentenced to 25 years for cryptocurrency fraud.

• Bankman-Fried ordered to forfeit $11 billion after collapse of FTX exchange and Alameda Research hedge fund.

• Judge expresses concern over lack of remorse, sentences Bankman-Fried despite defense arguments, setting a significant precedent.

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  Former cryptocurrency billionaire Sam Bankman-Fried was sentenced to 25 years for his role in perpetrating one of the largest financial crimes in U.S. history. The 32-year-old was found guilty in November of seven counts, including conspiracy, fraud and money laundering. pic.twitter.com/IseD1OCUYN

  — CBS Evening News (@CBSEveningNews) March 28, 2024

Sam Bankman-Fried, the founder of FTX, has been sentenced to 25 years in prison for orchestrating a massive fraud scheme that led to the collapse of his cryptocurrency exchange and a related hedge fund, Alameda Research.

The sentencing, handed down in Manhattan federal court, represents a significant legal blow to Bankman-Fried, who had once been heralded as a rising star in the cryptocurrency industry.

Sam Bankman-Fried: key moments leading up to FTX founder’s trial …

Despite the prosecution’s push for a lengthier sentence of 40 to 50 years, Judge Lewis Kaplan settled on a 25-year term, citing concerns over Bankman-Fried’s potential to commit further harm.

“There is a risk that this man will be in position to do something very bad in the future,” remarked Judge Kaplan, underscoring the severity of the charges against the 32-year-old.

As part of the sentencing, Bankman-Fried has been ordered to forfeit a staggering $11 billion to the U.S. government.

Lack or remorse

Throughout the proceedings, Judge Kaplan expressed dismay over Bankman-Fried’s lack of remorse and evasive testimony.

“I have never seen a performance like Bankman-Fried’s trial testimony in my 30 years on the federal bench,” Kaplan remarked, noting the absence of any acknowledgment of wrongdoing from the defendant.

Bankman-Fried, once regarded as a prominent figure in the cryptocurrency community, faced a barrage of accusations related to securities fraud and conspiracy.

Despite his attempts to portray the losses incurred by customers as a result of a “liquidity crisis” or mismanagement, jurors remained unconvinced, convicting him on seven criminal counts.

Assistant U.S. Attorney Nicolas Roos, arguing for a harsher sentence, dismissed Bankman-Fried’s defense, asserting that FTX’s collapse stemmed from the “theft” of billions of dollars of customer money, rather than external factors.

Roos said the profound impact of the loss on individuals worldwide, describing it as a betrayal of trust with far-reaching consequences.