FTX founder Sam Bankman-Fried sentenced to 25 years in prison

Former cryptocurrency entrepreneur and FTX founder Sam Benkman-Fried has been convicted of what prosecutors have called one of the largest financial frauds in U.S. history.  Benkman-Fried is now to be sent to prison for 25 years, UNN reports with reference to The Wall Street Journal.

Details

The founder of the bankrupt cryptocurrency platform FTX, Sam Bankman-Fried, has been found guilty of embezzling $8 billion from his cryptocurrency exchange's customers. The verdict was handed down by a court in New York.

Less than two years ago, this mop-top millennial was chatting with heads of state, enjoying the views of the Caribbean from his $30 million penthouse, and vowing to use his wealth for the good of humanity.

At the end of 2022, FTX, one of the largest platforms for trading crypto assets such as bitcoin, collapsed in a spectacular fashion. Bankman-Fried was arrested in the Bahamas and extradited to the United States. A jury found the founder of the FTX crypto exchange guilty of multibillion-dollar fraud. The prosecutor's office demanded a sentence of 40 to 50 years in prison.

Banker-Fried's lawyers demanded five to six and a half years in prison. Their client was by no means a "supervillain" as the prosecution portrayed him. They also pointed out that FTX clients had received a significant portion of their money back. Federal Judge Lewis Kaplan responded:

A thief who takes his loot to Las Vegas and successfully bets on the stolen money is not entitled to mitigation by using the winnings in Las Vegas to pay back the stolen money.

Judge Lewis Kaplan handed down the sentence on Thursday, March 28.

At a court hearing in New York, Benkman-Fried apologized to FTX's clients, investors, and employees.

Many people feel disappointed, and they were very disappointed. I apologize for that. I regret what happened at every step of the way," he said, according to the American newspaper

Recall

Earlier UNN reported that former cryptocurrency entrepreneur Sam Bankman-Fried was convicted in a fraud case. In 2023, Bankman-Fried was found guilty on seven counts in the United States, and faced more than 100 years in prison.

The US and the UK are investigating several cryptocurrency transactions worth more than $20 billion that went through a Russian virtual exchange.

The United States has imposed a new package of sanctions on 13 fintech companies and two individuals linked to Russia for allegedly developing or offering virtual asset servicesthat were used to circumvent the bans.