Former FTX CEO Sam “SBF” Bankman-Fried has been handed a 25-year prison sentence by a federal judge for his multiple felony convictions. The decision has received mixed reactions from individuals within and outside the cryptocurrency realm. Judge Lewis Kaplan, on March 28, strongly criticized Bankman-Fried and subsequently announced consecutive sentences of 240 months and 60 months, totaling 25 years behind bars. The judge referred to SBF as a “thief,” accused him of deceptive promotion of crypto regulation, found him guilty of perjury, and stated that he was willing to gamble with the existence of life on Earth.
Since August 2023, Bankman-Fried has been held at the Metropolitan Detention Center in Brooklyn after Judge Kaplan revoked his bail for intimidating witnesses in the criminal case. The judge’s docket entry on March 28 indicated that time already spent in jail would be deducted from the sentence, meaning SBF would face a maximum of 291 months in prison, concluding in 2048. Judge Kaplan specified that Bankman-Fried would serve the remainder of his sentence at a medium- or low-security prison in the San Francisco Bay Area. Reports mentioned potential locations such as the Federal Correctional Institution (FCI) Herlong and FCI Mendota, but it remained unclear which facility would house the former FTX CEO at the time of publication.
Following the March 28 hearing, many social media reactions expressed skepticism that Bankman-Fried would serve the full sentence. According to U.S. law, parole is no longer available for individuals convicted of federal charges. However, inmates with “good conduct” can receive a reduction of 54 days from their sentence for each year served. In Bankman-Fried’s case, this would result in a reduction of approximately 3.75 years, leaving him with a total of 21.25 years served, and less than 21 years after sentencing, potentially ending in 2045. Even if he is released early for good behavior, Bankman-Fried, who is currently 32 years old, would be in his mid-50s.
Bankman-Fried’s attorney, Marc Mukasey, stated that they intended to appeal the jury’s decision before Judge Kaplan announced the 25-year sentence. The lawyers have a 14-day window to file the necessary paperwork in court. Some individuals within the crypto space believed that the 25-year prison term was too lenient considering the impact on FTX users. However, others were surprised by the severity of the sentence.
The FTX bankruptcy case is ongoing in the District of Delaware, where debtors have proposed a potential plan to repay users based on the prices at the time of the exchange’s collapse. As part of Bankman-Fried’s criminal case, Judge Kaplan also issued an $11 billion forfeiture judgment. Former federal prosecutor Mitchell Epner stated that this forfeiture was aimed at ensuring that any future earnings made by SBF would not go to him but instead to the government and the victims. Epner suggested that even if Bankman-Fried managed to start a successful business and accumulate significant funds after his release, the government would have the right to seize those assets. Furthermore, any unexpected windfall would also be subject to seizure, making it unlikely that Bankman-Fried would regain his previous financial status.
In an article by Tiffany Fong, a prominent crypto influencer who has covered SBF’s case extensively, she expressed her hopes that neither Bankman-Fried nor Alex Mashinsky would have to spend their entire lives in prison. She personally felt that a sentence of 40 to 50 years would essentially equate to life imprisonment for someone as young as Bankman-Fried, who is currently 32 years old.
Source: Tiffany Fong
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Ana Kasparian, a host at progressive media outlet The Young Turks, shared her opinion on the 25-year sentence, stating that she believed it was excessively long. She felt that such a sentence should be reserved for violent criminals who pose a threat to public safety.
Regarding the financial aspect, the FTX bankruptcy case is still ongoing in the District of Delaware. Debtors have put forth a potential plan to repay users based on the exchange’s collapse prices. In addition to the criminal sentence, Judge Kaplan also imposed an $11 billion forfeiture judgment on Bankman-Fried. Former federal prosecutor Mitchell Epner explained that this forfeiture was designed to ensure that any future earnings made by SBF would not benefit him but instead go to the government and the victims. Epner further emphasized that bankruptcy would not eliminate the forfeiture, meaning that Bankman-Fried would never be able to accumulate wealth throughout his life.
Epner’s statement suggested that if Bankman-Fried were to establish a successful business after his release and generate significant profits, the government would have the authority to claim those funds. This same principle would apply to any unexpected financial windfall, making it highly unlikely for Bankman-Fried to regain his previous financial standing.
Magazine: ‘Less flashy’ Mashinsky set for less jail time than SBF: Inner City Press, X Hall of Flame