Former CEO of cryptocurrency exchange FTX, Sam Bankman-Fried, has been sentenced to 25 years in prison for fraud and conspiracy. The sentence was issued by Judge Lewis Kaplan in a Manhattan courtroom, who described the crimes as very serious and pointed out the lack of remorse shown by Bankman-Fried during the trial.
Bankman-Fried, who appeared in court wearing a khaki prison jumpsuit with messy hair, was accused of committing perjury multiple times. The defense’s argument of “no loss” and the ability to pay back customers were rejected by Judge Kaplan, who also heard victim statements detailing the emotional and financial impact of FTX’s fraud.
Despite his defense attorney portraying him as a misunderstood figure struggling with depression and social awkwardness, Bankman-Fried awkwardly apologized for FTX’s fall, claiming he made a series of bad decisions. However, the government prosecutor rejected his apology, citing the lack of remorse and harm caused to victims.
Bankman-Fried was sentenced to 25 years in prison, with the right to appeal but not parole. He was also ordered to forfeit $11 billion in assets in addition to the prison term. His parents expressed being heartbroken and committed to continuing to fight for their son, while US federal prosecutor Damian Williams praised the sentence as sending an important message, calling Bankman-Fried a crook and liar.
Legal experts have provided assessments of the sentencing, noting its severity and deterrence factor. There is now a debate on whether the crypto industry has reformed since the collapse of FTX. Bankman-Fried apologized in court before sentencing, expressing regret for the harm caused by his actions.
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