by Nik Hoffman at Bitcoin Magazine
Sam Bankman-Fried, founder of the FTX cryptocurrency exchange, has been sentenced to 25 years in prison by a judge in New York for orchestrating an $8 billion theft from FTX customers.
🚨 BREAKING: JUDGE SENTENCES SAM BANKMAN-FRIED TO 25 YEARS IN PRISON FOR MULTI-BILLION DOLLAR FTX FRAUD pic.twitter.com/M9HotmBma2
— Bitcoin Magazine (@BitcoinMagazine) March 28, 2024
The sentencing, handed down by U.S. District Judge Lewis Kaplan, comes after Bankman-Fried was found guilty on seven fraud and conspiracy counts related to FTX’s collapse in 2022. Judge Kaplan rejected Bankman-Fried’s claims that customers did not lose money and accused him of lying during the trial.
During the sentencing hearing, Bankman-Fried tried to express regret for the losses suffered by FTX customers, saying he’s “sorry about what happened.” However, Judge Kaplan emphasized the severity of the crime, stating that FTX customers lost $8 billion, equity investors lost $1.7 billion, and lenders to Bankman-Fried’s hedge fund lost $1.3 billion.
The judge also criticized Bankman-Fried’s dishonesty during the trial, particularly regarding his knowledge of the misappropriation of customer funds. Federal prosecutors had sought a much longer sentence, highlighting the scale and impact of the financial fraud.
Bankman-Fried’s rapid rise in the cryptocurrency industry,…
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