NEW YORK (AP) — Crypto Entrepreneur Sam Bankman Freed He was sentenced to 25 years in prison on Thursday for the massive fraud against hundreds of thousands of customers uncovered in the collapse of FTX, once one of the world's most popular digital currency exchange platforms.
After conducting a rigorous analysis of Bankman Fried and his crimes, U.S. District Judge Louis A. Kaplan sentenced him to half the sentence sought by prosecutors and a quarter of the 105-year sentence recommended by the court's probation officer. The court ruled that it was less than 1.
“Currently, Bankman Fried's name has become quite popular around the world,” Kaplan said of the 32-year-old man who once appeared to be at the top of the cryptocurrency world until his business collapsed in November 2022. There is absolutely no doubt about that.” Customers, investors and lenders were left with more than $11 billion, which a judge ordered forfeited.
he was there Convicted in November A dramatic fall from the pinnacle of success that included Super Bowl ads and celebrity endorsements from stars such as quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.
Kaplan, who was sentenced in the same Manhattan courtroom, testified four months earlier that Bankman Fried intended to revolutionize the emerging crypto market with an innovative and altruistic idea, not theft. did. The judge said Bankman Fried committed repeated perjury when she lied on the witness stand.
Kaplan said the sentence “reflects the risk that this man will be in a position to do something very bad in the future.” And it is by no means a trivial risk. He added that this was “with the aim of incapacitating him, to the extent reasonably possible, for a significant period of time”.
Mr. Kaplan told the Federal Bureau of Prisons that Mr. Bankman-Fried's notoriety, association with great wealth, autism, and social awkwardness would likely make him particularly vulnerable to high concentrations. He said he would recommend sending Bankman-Fried to a medium-security prison near San Francisco. Security facility.
Recommended by Assistant U.S. Attorney Nicholas Luce prison sentence He said it was the only way to “prevent the defendant from doing this again.”
“The defendant victimized tens of thousands of people and businesses over multiple years and on multiple continents. He stole money from customers who entrusted them with money. He lied to investors. He sent forged documents to lenders. He funneled millions of dollars in illegal contributions into our political system. And he bribed foreign officials. Each of these crimes merits long prison sentences.” prosecutors said in a court filing.
Prosecutors said Bankman Fried misappropriated billions of dollars to further his pursuit of influence and dominance in new industries. money spent illegally He received funds from FTX depositors to cover his expenses, including buying luxury real estate in the Caribbean and bribing Chinese officials and private planes.
Mr. Kaplan agreed Thursday with prosecutors that Bankman Fried should not be given leniency because some investors and customers may recoup some of their losses. He noted that customers lost about $8 billion, investors lost $1.7 billion and lenders were shorted by $1.3 billion.
When given the opportunity to speak, Bankman Fried stood and apologized in a rambling statement: “I feel like a lot of people are really disappointed. And they were very disappointed. I'm sorry for that. I'm sorry for what happened every step of the way.”
He further added: “My useful life is probably over. It's been a while since I was arrested.”
Bankman-Fried, wearing a khaki prison uniform and chained around his ankles, appeared emotional at one point during his approximately 20-minute speech and expressed regret for “many mistakes.” , shifted some of the responsibility to others. His trademark unkempt, bushy hair had returned from the trimmer look he wore at trial.
A judge later criticized those comments, saying: “There was not a single word of remorse for having committed such a horrific crime.”
Defense attorney Mark Mukasey said his client was misled.
“Sam was not a ruthless financial serial killer trying to hurt people every morning,” Mukasey said. “Sam Bankman Freed doesn't make decisions with malice in his mind. He makes decisions with the math in his head.”
Bankman Freed's Lawyers, Friends and Family asked for leniency, said he was unlikely to reoffend again. They also said FTX's investors had recovered most of their funds, a claim disputed by bankruptcy lawyers, FTX and its creditors.
“Mr. Bankman Freed continues to live a life of delusion,” wrote FTX CEO John Ray, who is cleaning up the bankrupt company. “The ‘business’ he left on November 11, 2022, was neither solvent nor secure.”
Two weeks ago, Ms Mukasey attacked the Probation Service's recommendation for a 105-year sentence, saying such a long sentence would be “grotesque” and “barbaric”.
He asked the judge to sentence Bankman-Freed to five to six-and-a-half years in prison, which Mukasey said was a fair interpretation of federal sentencing guidelines.
Bankman Fried was worth billions of dollars on paper as co-founder and CEO of FTX, which at one time was the world's second-largest cryptocurrency exchange.
FTX has enabled investors to buy dozens of cryptocurrencies, from Bitcoin to obscure cryptocurrencies like Shiba Inu Coin. Enriched with billions of dollars in investor cash, Bankman Fried ran Super Bowl ads to promote his business and bought the naming rights to an arena in Miami.
but Cryptocurrency price collapse 2022 dealt a huge blow to FTX, ultimately leading to its collapse. FTX's hedge fund affiliate, known as Alameda Research, had purchased billions of dollars of various crypto investments that lost significant value in 2022. Bankman Freed sought to fill holes in Alameda's balance sheet with FTX client funds.
Three other members of Mr. Bankman Fried's inner circle have pleaded guilty to related crimes and testified at his trial.
The biggest name of the three was Bankman Freed's former girlfriend, Caroline Ellison. Ms Ellison described Mr Bankman Freed as a calculating person who knew she could commit a crime when she directed the use of her clients' funds. Bankman Freed's former friends, Gary Wang and Nishad Singh, also testified that they felt Bankman Freed directed them to commit fraud.