“I’m sorry about that. I’m sorry about what happened at every stage.”
In a dramatic turn of events, Sam Bankman-Fried, the once-revered entrepreneur behind the bankrupt FTX cryptocurrency exchange, has been sentenced to 25 years in prison by Judge Lewis Kaplan. This decision marks the final chapter in the downfall of the former billionaire prodigy, known widely as SBF.
At the heart of the matter lies the accusation of Bankman-Fried siphoning a staggering $8 billion from customers of the now-defunct FTX exchange he established. Judge Kaplan’s ruling, delivered at a Manhattan court hearing, dismisses Bankman-Fried’s defense that FTX clients hadn’t incurred actual losses and establishes that he perjured himself during trial proceedings, Reuters reported.
“He knew it was wrong,” Kaplan said before the ruling. “He knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right.”
Following a jury’s conviction on November 2 on seven counts of fraud and conspiracy relating to FTX’s 2022 collapse, Bankman-Fried, aged 32, now faces the consequences of what prosecutors dub as one of the most significant financial frauds in American history.
In addition to the hefty prison term, Bankman-Fried will forfeit over $11 billion. Judge Kaplan, in his assessment, highlighted Bankman-Fried’s lack of contrition, stating, “He knew it was wrong… He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right.”
Sporting a beige short-sleeve jail T-shirt, Bankman-Fried, during his address to the judge, acknowledged the hardships suffered by FTX customers and tendered an apology to his former colleagues, yet refrained from confessing to criminal misconduct.
Judge Kaplan’s scathing remarks during sentencing underscored Bankman-Fried’s demeanor throughout the trial, remarking:
“When not lying, he was evasive, hair-splitting, trying to get the prosecutors to rephrase questions for him. I’ve been doing this job for close for 30 years. I’ve never seen a performance like that.”
“I know a lot of people feel really let down,” Bankman-Fried said as he appeared at his sentencing hearing in lower Manhattan. I’m sorry about that. I’m sorry about what happened at every stage.”
In a last-minute plea for leniency, Bankman-Fried expressed remorse, recognizing the profound disappointment felt by many. “All of the company followed me across the earth, across continents, burning the midnight oil working until 2 a.m., 4 a.m., dedicated to FTX,” he reflected. “I remember so many of them… They threw themselves into it, and then I threw that all away. It haunts me every day,”
Acknowledging his missteps, Bankman-Fried conceded, “I made a series of bad decisions. They weren’t selfish decisions, they were bad decisions.” However, his statements fell short of an admission of guilt, underscoring the complexity and gravity of the situation surrounding his downfall.
A graduate of the Massachusetts Institute of Technology (MIT), first came into the spotlight in 2020 after he donated $5.2 million to Joe Biden’s campaign, making him the second-biggest donor. The stark turn of events places Bankman-Fried in a drastically different position than just three years ago when he was a billionaire rubbing shoulders with celebrities like Tom Brady in the Bahamas.
Before his legal troubles, Bankman-Fried also emerged as one of the foremost supporters of Democratic candidates and causes in the lead-up to the 2022 U.S. midterm elections. However, prosecutors contend his philanthropic facade masked a protracted embezzlement scheme targeting customer funds.
Bankman-Fried later rode the wave of Bitcoin and other digital assets’ meteoric rise to amass a staggering net worth of $26 billion by the age of 30, as reported by Forbes.
Sporting his trademark messy curly hair, Bankman-Fried garnered attention not only for his financial prowess but also for his dedication to the principles of effective altruism, which advocates for using wealth to address pressing global issues.
Sam Bankman-Fried with Former US President, Bill Clinton
FTX, founded by Bankman-Fried in 2019, gained significant attention during the pandemic’s crypto fervor. The company heavily marketed its services, securing naming rights to FTX Arena where the Miami Heat played, and recruiting A-listers like Larry David and Tom Brady to endorse its crypto trading platform. FTX filed for Chapter 11 bankruptcy on November 11, 2022, just a day after SBF resigned as the company’s CEO.
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- Source: https://techstartups.com/2024/03/28/ftx-founder-sam-bankman-fried-sentenced-to-25-years-in-prison-to-forfeit-more-than-11-billion/
