Sam Bankman-Fried, the cryptocurrency mogul who committed one of the largest financial frauds in history, has been sentenced to 25 years in prison. Judge Louis Kaplan issued the sentence in a Manhattan courtroom on Thursday. Bankman-Fried, the former CEO of the now-bankrupt cryptocurrency exchange FTX, was convicted of fraud and conspiracy to commit money laundering late last year.
Prosecutors sought a sentence ranging from 40 to 50 years, arguing that the 32-year-old Bankman-Fried showed no remorse for his crimes, living a life filled with "unprecedented greed and arrogance." In contrast, Bankman-Fried's attorney urged the judge to show leniency, describing the potential maximum sentence of 100 years as "terrifying."
It has been only two years since Bankman-Fried rose to become one of the most influential financial and political figures in the United States. At that time, his company FTX was valued at $32 billion, and he became the public face of the cryptocurrency industry, participating in events with celebrities and former leaders, testifying before the U.S. Congress, and being a major political donor who funneled money into election campaigns while pressuring lawmakers regarding cryptocurrency regulation.
His fall from the status of the golden boy of crypto to a global pariah was swift and dramatic, following reports in November 2022 revealing financial instability in Bankman-Fried's companies. Clients began withdrawing their deposits like bank runs, and investigators froze FTX's assets. FTX declared bankruptcy just nine days after the specialist news site Coindesk reported on the financial issues, causing Bankman-Fried’s personal wealth to plummet by billions.
He was arrested weeks later in the Bahamas, where he lived with other executives from his company. Bankman-Fried's long-awaited trial began in October, where prosecutors claimed he embezzled customer funds while enriching himself and purchasing luxurious properties. Once known for his unkempt hair and casual clothing, Bankman-Fried appeared with a new haircut and suit during the trial.
In an unusual and ultimately disastrous move, he decided to represent himself, resulting in a damaging cross-examination where he struggled to recall events and appeared to contradict himself. Several top executives and close associates of Bankman-Fried, including his girlfriend Caroline Ellison, testified against him during the trial. Ellison, the former CEO of FTX's trading arm Alameda Research, told the court that Bankman-Fried instructed her to commit fraud and use FTX customer funds without their knowledge.
The jury found Bankman-Fried guilty on all seven counts of fraud and conspiracy after just four hours of deliberation, while Bankman-Fried maintained his innocence.
