A federal judge has decided to give disgraced crypto CEO Sam Bankman-Fried a 25-year prison term on Thursday.
Bankman-Fried, once known as the “crypto king,” has been found guilty of taking billions from FTX cryptocurrency exchange customers and deceiving investors and lenders in Alameda Research. He is now 32 and returned to court on Thursday to hear his fate. Before the hearing, prosecutors asked the judge to give Bankman-Fried a sentence of 40-to-50 years in prison, citing the possibility of him committing another fraud if released early.
The U.S. Attorney accused SBF of orchestrating “one of the biggest financial frauds in American history.”
The seven criminal charges he was convicted of carry a maximum sentence of 110 years. His lawyers sought a sentence of between five and a half and six and a half years, arguing that he could make positive contributions to society after his release due to his autism, remorse, and charitable works.Customers, lenders, and investors have yet to recover the money they lost since FTX collapsed.
Disgraced former CEO of cryptocurrency exchange FTX was in federal court for sentencing on seven criminal counts Thursday
“There is a significant likelihood that if the defendant is released back into society at a young enough age he will have the opportunity to engage in another fraud,” prosecutors said in a court filing.
U.S. Attorney Damian Williams accused SBF of masterminding “one of the biggest financial frauds in American history,” CNBC reported.
The seven criminal counts Bankman-Fried was convicted of carry a maximum sentence of 110 years.
SBF’s sentence puts him behind master swindler Bernie Madoff in the annals of white collar fraud sentences. Madoff died in prison in 2021 while serving a 150-year sentence.
But it places him with other financial scoundrels, like former WorldCom CEO Bernard Ebbers and former Tyco International CEO Dennis Koslowski, who were both also hit with 25-year sentences after their convictions, The Journal noted.
Bankman-Fried’s lawyers sought a sentence of between five and a half and six and a half years, also pointing to his youth. They argued that he is young enough to offer something positive to society on the other side of his time behind bars, pointing to his autism, his deep remorse and his charitable works as reasons for a lenient sentence, The Journal reported.
They also argued that customers, lenders and investors would get back the money they lost, a claim that many who lost out since FTX imploded say has not yet happened.
Marc Mukasey, his lawyer, told the judge that Bankman-Fried wasn’t a “ruthless financial serial killer” who sought to hurt people.
“Sam Bankman-Fried does not make decisions with malice in his heart,” Mukasey said in court, according to the Journal. “He makes decisions with math in his head.”
Bankman-Fried has said he plans to appeal his his conviction.
