After more than 500 days since the collapse of cryptocurrency exchange FTX, the fate of former CEO Sam “SBF” Bankman-Fried has been determined. He has been sentenced to 25 years in prison for misusing customer funds. The sentencing took place on March 28, with Judge Lewis Kaplan making the decision. Prosecutors had initially recommended up to 50 years in prison, while the defense requested a maximum of 6.5 years. The judge also noted that Bankman-Fried had committed perjury and intimidated witnesses.
The announcement of the sentence sparked a flurry of reactions on social media from crypto users. Many expressed dissatisfaction with the 25-year sentence, arguing that it was not enough considering the longer sentences given for less severe crimes. Edward Snowden, for example, compared Bankman-Fried’s sentence to Chelsea Manning’s 35-year sentence for violations of the Espionage Act.
While the sentencing guidelines allowed for a sentence of over 100 years, it was widely speculated before the hearing that Bankman-Fried would likely receive a sentence ranging from 10 to 30 years. Some legal experts believe that this sentence could serve as a deterrent for others in the crypto space.
Mark Bini, a former Assistant U.S. Attorney, commented that Judge Kaplan carefully considered various factors in reaching his decision, including the seriousness of the crime and Bankman-Fried’s dishonesty and witness tampering. Bini believes that the sentence sends a strong message that those convicted of crimes in the crypto space will face significant consequences.
However, not everyone agrees with the sentence. Terrence Yang, the Managing Director of Swan Bitcoin, criticized the decision, stating that justice was not served and that 25 years was too lenient. Yang cited the permanent and severe damage caused by Bankman-Fried’s actions, including the collapse of FTX, suicides, and the misuse of user funds. Despite Bankman-Fried’s ADHD diagnosis, Yang argued that his lack of remorse and the extent of the harm caused warranted a harsher sentence.
Bankman-Fried was immediately taken into custody and transferred to the Metropolitan Detention Center in Brooklyn. His former co-CEO, Ryan Salame, is expected to be sentenced on May 1. Other former executives associated with FTX and Alameda Research, including Gary Wang, Caroline Ellison, and Nishad Singh, have already pleaded guilty and accepted plea deals.
This article has been updated to include a statement from the U.S. Attorney’s Office for the Southern District of New York.