Disgraced cryptocurrency mogul Sam Bankman-Fried has been sentenced to 25 years in prison by US District Judge Lewis Kaplan. The judge also ordered over $11 billion in forfeiture, which includes properties and assets purchased with customer funds. Payments to victims will be handled through the Justice Department.
During the sentencing, Kaplan described Bankman-Fried as ambitious and deceitful, willing to gamble with his customers' livelihoods. Bankman-Fried expressed regret for letting down customers and employees of FTX, his cryptocurrency exchange, stating that his useful life is likely over.
Bankman-Fried, who faced a maximum of 110 years in prison, was found guilty on seven counts of wire fraud, money laundering, and conspiracy charges in November. Prosecutors argued that he funneled customer funds to himself through his hedge fund, Alameda Research, in an $11 billion fraud scheme.
Bankman-Fried's newly hired legal team plans to appeal his conviction. The sentencing hearing followed a trial where other executives of his companies cooperated with prosecutors, sealing his fate. Bankman-Fried's attorneys argued that FTX's customers did not lose money, but prosecutors disputed this claim.
The sentencing took place in a Manhattan federal court, where Bankman-Fried was described as evasive and perjurous during his testimony. The judge expressed concern about Bankman-Fried's potential to cause harm in the future and recommended a facility close to San Francisco for his incarceration.
Bankman-Fried's parents submitted letters pleading for a lighter sentence, citing his neurodivergence. Despite this, the judge emphasized the severity of Bankman-Fried's actions and the need to prevent further harm. The disgraced mogul remains incarcerated in Brooklyn's Metropolitan Detention Center as he awaits his transfer to a long-term facility.