Former crypto mogul Sam Bankman-Fried has been sentenced to 25 years in prison for his role in the the 2022 collapse of FTX, once one of the world’s most popular platforms for trading digital currency.
Bankman-Fried, 32, was convicted of fraud and conspiracy after a dramatic fall from a year earlier when he and his companies seemed to be riding a crest of success that resulted in a Super Bowl advertisement and celebrity endorsements.
A jury found that Bankman-Fried illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, alleged bribes to Chinese officials and private planes.
Prosecutors had recommended a prison sentence of 40 to 50 years.
“The defendant victimised tens of thousands of people and companies, across several continents, over a period of multiple years,” prosecutors told Judge Lewis A. Kaplan in a court filing.
“He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials.
“Each of these crimes is worthy of a lengthy sentence.”
Bankman-Fried’s attorneys, friends and family have urged leniency, saying he is unlikely to reoffend again.
They also say FTX’s investors have largely recovered their funds – a claim disputed by bankruptcy lawyers, FTX and its creditors.
“Mr Bankman-Fried continues to live a life of delusion,” wrote John Ray, the CEO of FTX who has been cleaning up the bankrupt company.
“The ‘business’ he left on November 11, 2022 was neither solvent nor safe.”
Two weeks ago, Bankman-Fried attorney Marc Mukasey attacked a probation office recommendation of 100 years in prison, saying a sentence of that length would be “grotesque” and “barbaric.”
He urged the judge to sentence Bankman-Fried to a term of five to six-and-a-half years in prison.
“Sam is not the ‘evil genius’ depicted in the media or the greedy villain described at trial,” Mr Mukasey said, calling his client a “first-time, non-violent offender.”
Bankman-Fried was worth billions of dollars on paper as the co-founder and CEO of FTX, which was the second-largest cryptocurrency exchange in the world at one time.
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