Sam Bankman-Fried, the former CEO of collapsed crypto exchange FTX, has been sentenced to 25 years in federal prison for his role in defrauding customers and investors.
In his statement, the disgraced crypto king expressed remorse for his actions and acknowledged the pain inflicted upon FTX's customers.
The prosecution had sought a harsher sentence of 40-50 years due to the magnitude of the financial losses incurred by FTX customers
Bankman-Fried's defense team, however, pushed for a shorter sentence, citing his status as a non-violent first-time offender. However, U.S. District Judge Lewis A. Kaplan handed down the 25-year prison term, arguing that there is not a trivial risk that Bankman-Fried would "be in position to do something very bad in the future."
Tomiwabold OlajideThe sentencing also included an order for Bankman-Fried to forfeit more than $11 billion in assets.
As reported by U.Today, the former FTX boss was convicted of fraud and money laundering last year. He was facing more than 100 years in prison.
It is worth noting that Bankman-Fried was worth a whopping $26 billion at its peak, which made him one of the wealthiest people on the planet. However, his fortune evaporated in virtually no time after it was revealed that FTX was operating as an elaborate scam that was stealing billions of dollars from customers. Right on the cusp of his sentencing, Bankman-Fried insisted that the exchange had a sufficient amount of assets to repay "all customers."
The conviction will be appealed following the sentencing, according to Bankman-Fried's lawyer.
Arman Shirinyan
Vladislav Sopov
Dan Burgin
U.Today Editorial Team