“King of cryptocurrencies” sentenced. He will spend 25 years in prison

The former CEO of the FTX cryptocurrency exchange, Sam Bankman-Fried, was sentenced to 25 years. prisons. According to the court, the former “cryptocurrency king” may be capable of “doing something very bad in the future.” This sentence is intended to “immobilize him as much as possible.”

Judgment regarding the FTX exchange

Bankman-Fried announced he would appeal against the verdict. His defense lawyers demanded a much milder sentence, from five to 6.5 years in prison, citing his charity work and commitment to others. The defense team also suggested leniency, arguing that victims would be compensated, referring to a January bankruptcy court hearing that showed customers and creditors would get their money back.

And prosecutors had sought a much tougher sentence of 40 to 50 years in prison “to reflect the seriousness of the defendant's crimes,” U.S. Attorney Damian Williams told the court earlier this month. The maximum possible sentence was 110 years.

The Fall of FTX

Bankman-Fried was arrested in the Bahamas in December 2022. He faces seven charges, including wire fraud against FTX customers, wire fraud against Alameda Research lenders, conspiracy to commit wire fraud against both entities, conspiracy to to commit securities and commodities fraud against FTX customers and to conspire to commit money laundering. He was found guilty on all charges.

The trial lasted a month, with prosecutors arguing that he used FTX funds to keep sister company Alameda Research afloat. Caroline Ellison, his former girlfriend and CEO of Alameda, confirmed this was true and admitted that she had committed fraud on Bankman-Fried's behalf. On the other hand, the defendant's lawyers tried to portray him as a hapless math geek struggling with “forces largely beyond his control.”

Alameda borrowed more than $8 billion from FTX, which was withdrawn from accounts belonging to FTX customers. Bankman-Fried says he only learned about it in 2020, but took no action to secure the funds. He maintained that position during the trial and said he deeply regretted not “taking a closer look” at what was happening with both companies. FTX went bankrupt and announced bankruptcy in 2022.