Former FTX CEO Sam “SBF” Bankman-Fried has been sentenced to 25 years in prison by Judge Lewis Kaplan of the United States District Court for the Southern District of New York. The sentencing came after Bankman-Fried was convicted on seven felony charges related to the collapse of FTX and Alameda Research.
Judge Kaplan found that Bankman-Fried had also committed witness tampering and perjury during the trial. Despite acknowledging Bankman-Fried’s social awkwardness, the judge stated that the seriousness of the crime warranted a fitting punishment. He criticized Bankman-Fried’s evasive and uncooperative behavior during the trial, calling it unprecedented in his 30 years on the job.
In addition to the prison sentence, the judge suggested an $11 billion judgment against Bankman-Fried. He stated that FTX investors, lenders, and customers had collectively lost $11 billion, with customers being the hardest hit.
Bankman-Fried appeared in court wearing the uniform of the Metropolitan Detention Center in Brooklyn, where he has been held since his bail was revoked. The courtroom was reportedly filled with members of the public and officials before Bankman-Fried was brought out by the U.S. Marshals.
Judge Kaplan rejected the defense’s argument that customers and creditors would be paid in full, stating that the assertion was misleading and equated loss with dollar volume in the bankruptcy case.
Before the sentence was announced, Bankman-Fried expressed remorse for what had happened and claimed that FTX would have survived if it hadn’t been shut down. His attorneys portrayed him as a misunderstood genius. However, Assistant U.S. Attorney Nicolas Roos argued that Bankman-Fried showed no acceptance of responsibility for his actions.
The sentence imposed by Judge Kaplan fell between the recommendations of Bankman-Fried’s attorneys and the prosecutors. Four other individuals associated with FTX and Alameda have pleaded guilty and accepted deals, with only one yet to be sentenced.
Overall, the sentencing hearing marked a significant development in the case, with Bankman-Fried facing a lengthy prison term for his role in the collapse of FTX and Alameda.