- Sam Bankman-Fried was co-founder of FTX, one of the world’s biggest crypto exchanges before it collapsed
- Bankman-Fried convicted of defrauding investors and customers on massive scale
- Sentenced to 25 years imprisonment
Sam Bankman-Fried, who co-founded one of the world’s largest crypto exchanges before its dramatic collapse, has been sentenced to 25 years in jail.
The former billionaire had been expected to receive a lengthy sentence after being convicted last year of wire fraud and conspiracy to commit money laundering. At his trial last year, he was found guilty of stealing $8 billion from customers and investors.
This sentencing completes the downfall of Bankman-Fried, who had been styled the ‘Crypto King’ and his company, FTX, was one of the largest cryptocurrency exchanges in the world, with millions of people using it to trade cryptocurrency.
In addition to his apparent business success, Bankman-Fried became a face for cryptocurrency, taking part in many interviews over the years. He became known for his laid-back style – he eschewed corporate dress for shorts and t-shirt, often slept on a beanbag in his office, and had a habit of playing games while in company meetings. He also made large charitable donations and sought political influence.
However, in 2022, rumors surfaced that FTX had financial trouble, which led to many people withdrawing their deposits, and the company quickly imploded – and this exposed Bankman-Fried’s crimes.
Bankman-Fried’s legal team said that he will appeal against his conviction.
Speaking in court prior to the sentencing, Bankman-Fried said he was sorry about letting people down, adding: “I’m sorry about what happened at every stage.”
In addition to his prison sentence, Judge Lewis Kaplan also ordered Bankman-Fried to forfeit $11 billion, which will be used to compensate people who lose money when FTX collapsed.
Some of Bankman-Fried’s assets have already been seized, including his shares in trading app Robinhood, which raised some $600 million when they were sold in 2023.
