Sam Bankman-Fried, founding father of the FTX cryptocurrency trade, has been sentenced to 25 years in jail by a choose in New York for orchestrating an $8 billion theft from FTX clients.
🚨 BREAKING: JUDGE SENTENCES SAM BANKMAN-FRIED TO 25 YEARS IN PRISON FOR MULTI-BILLION DOLLAR FTX FRAUD pic.twitter.com/M9HotmBma2
— Bitcoin Journal (@BitcoinMagazine) March 28, 2024
The sentencing, handed down by U.S. District Decide Lewis Kaplan, comes after Bankman-Fried was discovered responsible on seven fraud and conspiracy counts associated to FTX’s collapse in 2022. Decide Kaplan rejected Bankman-Fried’s claims that clients didn’t lose cash and accused him of mendacity in the course of the trial.
In the course of the sentencing listening to, Bankman-Fried tried to precise remorse for the losses suffered by FTX clients, saying he is “sorry about what occurred.” Nevertheless, Decide Kaplan emphasised the severity of the crime, stating that FTX clients misplaced $8 billion, fairness traders misplaced $1.7 billion, and lenders to Bankman-Fried’s hedge fund misplaced $1.3 billion.Â
The choose additionally criticized Bankman-Fried’s dishonesty in the course of the trial, notably relating to his information of the misappropriation of buyer funds. Federal prosecutors had sought a for much longer sentence, highlighting the size and influence of the monetary fraud.
Bankman-Fried’s speedy rise within the cryptocurrency business, got here crashing down because the in depth embezzlement scheme of FTX was uncovered, during which his fraudulent actions led to vital losses for traders and clients. Many imagine this 25 12 months sentence is injustice, as Decide Kaplan mentioned right now earlier than the official ruling, “I’ve restricted my findings on obstruction to help the discovering – there could also be extra. The overall offense stage is 60 – when you cross 43, it can not go increased. The rule of thumb is life in jail. However the most is 1320 months on this case.”Â
Renowed whistle blower and cybersecurity professional Edward Snowden commented on the information, stating “holy shit he gave him lower than Chelsea Manning (35 years) for a waaaaay worse crime.”
The FTX founder was additionally the Democrat social gathering’s second-biggest particular person donor within the 2021/2022 election cycle (donating over $39,800,000).
