Cryptocurrency Scandal: FTX’s Sam Bankman-Fried Sentenced to 25 Years

Cryptocurrency Scandal: FTX's Sam Bankman-Fried Sentenced to 25 Years

The disgraced cryptocurrency entrepreneur, Sam Bankman-Fried, has been sentenced to 25 years in prison for running a multi-billion dollar fraud scheme that shook the crypto world.

Bankman-Fried, who was the former CEO of FTX, a well-known cryptocurrency exchange that collapsed earlier this year, was found guilty of seven charges including wire fraud, securities fraud, and money laundering, that could reach a total loss of up to $10 billion for customers and investors.

Prosecutors were asking for a 40-50-year sentence in the beginning, arguing that the gravity of Bankman-Fried’s crimes was huge.

Nevertheless, the prosecution demanded a sentence of 63-78 months, highlighting his autism diagnosis and the supposed good intentions he had in starting his company in 2019.

In Judge Lewis Kaplan’s sentence hearing, the fact that Bankman-Fried caused devastating damage, showed no remorse, and led a team that perpetrated a large-scale fraud was taken into account.

Bankman-Fried’s image as a crypto savvy has been severely damaged and, as a result, the young entrepreneur has been thwarted.

During the entire trial, Bankman-Fried pleaded not guilty, saying that he did not know in advance how deep FTX’s financial problems were until December 2022.

Nevertheless, his ex-partners` testimonies portrayed him as the commander who gave orders to cheat investors and transfer funds from FTX to Alameda, his sister company. Caroline Ellis, Alameda’s CEO and Bankman-Fried’s ex-girlfriend, took the stand against him.

She narrated how the FTX company became a troubled place as the cryptocurrency market crashed in 2022.

“Overall, it was the worst week of my life,”. “I felt this sense of relief that I didn’t have to lie anymore, and that I could start taking responsibility, even though I felt indescribably bad.”

In return for cooperating with the prosecution, Ellison said, commenting on the company’s collapse in the fall of 2022.

Despite the gravity of the case, there is a chance that the victims of Bankman-Fried’s fraud could be compensated for the losses they have suffered.

The defense counsel advised the court that those funds were invested with the stolen money and the market value of such investment had increased. That means that FTX’s customers and creditors might get their money back.

While Bankman Fried is experiencing the consequences of his actions, the cryptocurrency community is left to deal with one of its biggest scandals.

Umegbolu Medlyn Chinelo
About Umegbolu Medlyn Chinelo 81 Articles
Umegbolu Medlyn Chinelo transitioned from science to writing. She has over 3 years of experience and has written on various niches. She helps websites improve their Google rankings and currently interns at PanAsiaBiz, crafting cricket previews and crypto news. Medlyn thrives on challenges and enjoys learning. In her free time, she relaxes with movies and cooking.