Sam Bankman-Fried, once at the helm of FTX and owner of Alameda Research, has been handed a 25-year prison term today, as reported by Inner City Press.
The jury’s verdict found Bankman-Fried guilty of several serious offenses, including wire fraud, fraud conspiracy, and money laundering conspiracy.
In the wake of Bankman-Fried’s actions alongside his associates, both FTX and Alameda Research faced significant financial woes, leading to declarations of bankruptcy after billions of dollars were misused.
Judge Kaplan: It is the judgment of the court that you are sentenced to 240 months then consecutive 60 [etc] for a total of 300 months [25 years]
— Inner City Press (@innercitypress) March 28, 2024
Bankman-Fried’s defense argued against considering the losses incurred by these collapsed enterprises, suggesting a potential full recovery from bankruptcy. However, current FTX CEO John J. Ray III vehemently refuted these claims, stating they were blatantly false.
Judge Kaplan, as reported by Inner City Press, sided with Ray's assertion, labeling the defense's argument as misleading.
Throughout the trial, Bankman-Fried perpetuated various falsehoods, including implying he could have salvaged FTX and asserting that there were ample assets to address the situation. However, the bankruptcy estate firmly opposes Bankman-Fried’s claim that customers will receive payment equivalent to the current asset value.
According to the Sentencing Reform Act of 1984 in the United States, inmates must serve a minimum of 85% of their sentence before becoming eligible for release. Bankman-Fried’s legal team hinted at their intention to appeal the verdict.
Concluding the proceedings, Judge Kaplan highlighted Bankman-Fried’s propensity for deceit and evasion, which he found to be unparalleled in his extensive tenure.