FTX Founder Sentenced to 25 Years for Exchange Collapse: Report

In a Manhattan federal court, Sam Bankman-Fried, the former CEO of FTX was sentenced to 25 years in prison on charges stemming from the cryptocurrency exchange’s collapse. Judge Lewis A. Kaplan presided over the sentencing which concluded weeks of speculation regarding the severity of Bankman-Fried’s punishment.

Bankman-Fried faced the possibility of an even lengthier sentence with suggestions of up to 110 years in prison. This verdict sheds light on the tumultuous events that precipitated the abrupt downfall of FTX, a once high-flying cryptocurrency exchange valued at over $30 billion at its peak.

The sentence hearing for Bankman-Fried was announced to take place at 9:30 EST on the 26th floor of the Federal Court in downtown Manhattan. Bankman-Fried was facing seven criminal charges with expectations of a 20- 30-year sentence. Chinese reporter Colin Wu shared an X post, shedding light on the matter.

CNBC reporter Mackenzie Sigalos said that the sentencing hearing for SBF will be held at 9:30 EST on the 26th floor of the Federal Court in downtown Manhattan. SBF is currently charged with seven criminal charges. Many parties agree that SBF may be sentenced to 20-30 years.…
— Wu Blockchain (@WuBlockchain) March 28, 2024

Amidst the anticipation, an FTX customer who suffered a $4 million loss due to the exchange’s bankruptcy in 2022 penned a letter to the Department of Justice. Expressing disdain for narratives hinting at compensation for affected clients, the letter revealed staggering customer liabilities totaling $19.7 billion.

U.S. District Judge Lewis Kaplan presided over the sentencing where victim impact statements aimed to sway the court’s decision. This judgment follows Bankman-Fried’s conviction on seven charges linked to the collapse of crypto exchange FTX and the disappearance of approximately $10 billion in customer deposits.

During the sentencing, Judge Kaplan expressed his concern about the potential danger that Bankman-Fried poses to society. He emphasized that the severity of the sentence reflects the gravity of the crimes committed by Bankman-Fried.

Notably, Kaplan also mentioned that Bankman-Fried did not show any remorse throughout the trial. However, Bankman-Fried said,

They built something really beautiful and I threw all of that away. A company once valued at $32 billion. It haunts me every day.

Bankman-Fried’s conviction on wire fraud and conspiracy charges highlights the severity of his actions. Speculation abounded regarding the prison term, with prosecutors suggesting 40 to 50 years while the defense advocated for a maximum of 6.5 years.