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HomeNewsFallen crypto mogul Sam Bankman-Fried sentenced to 25 years in prison

Fallen crypto mogul Sam Bankman-Fried sentenced to 25 years in prison

NEW DELHI: Crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison for a major fraud case linked to the collapse of FTX, a prominent platform for digital currency exchange.

The sentencing took place in a Manhattan courtroom, where Bankman-Fried faced charges of fraud and conspiracy, marking a stark downfall from his previous success highlighted by a Super Bowl ad and endorsements from celebrities like Tom Brady, Stephen Curry, and Larry David.

US District Judge Lewis A. Kaplan handed down the sentence, emphasizing concerns about Bankman-Fried’s potential to engage in further wrongful activities in the future.

The judge ordered Bankman-Fried to forfeit over $11 billion and recommended he be placed in a medium-security prison in the San Francisco area due to safety considerations related to his autism and social vulnerabilities.

Prosecutors had sought a harsher sentence of 40 to 50 years, citing Bankman-Fried’s extensive financial crimes that impacted numerous individuals and entities worldwide, resulting in losses exceeding $10 billion.

These crimes included misappropriation of funds, deception of investors, falsification of documents, illegal political contributions, and bribery of foreign officials.

Kaplan said the sentence reflected “that there is a risk that this man will be in position to do something very bad in the future. And it’s not a trivial risk at all”.

He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time”.

Defense attorney Marc Mukasey defended Bankman-Fried, portraying him as a person driven by analytical decision-making rather than malicious intent. Despite pleas for leniency from supporters, including claims of fund recovery for FTX investors, the court maintained a firm stance on the severity of the crimes committed.

Bankman-Fried’s rise to prominence stemmed from his role as the co-founder and CEO of FTX, a major player in the cryptocurrency exchange sphere.

However, the downturn in cryptocurrency values in 2022 led to financial challenges for FTX, exacerbated by losses in Alameda Research, a hedge fund linked to the company. Attempts to cover these losses using customer funds ultimately contributed to the downfall of FTX.