Bankman-Fried sentenced to 25 years in FTX fraud

Reuters Videos
Updated
1

STORY: Sam Bankman-Fried was sentenced to 25 years in prison on Thursday.

The former billionaire and founder of a defunct cryptocurrency exchange was found guilty by a jury last November of stealing $8 billion from customers of FTX, the exchange he'd founded, in what prosecutors said was one of the largest financial frauds in U.S. history.

The 32-year-old Bankman-Fried was convicted on seven counts of fraud and conspiracy stemming from FTX's collapse in 2022.

At the sentencing U.S. District Judge Lewis Kaplan said:

"He knew it was wrong. 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."

Bankman-Fried acknowledged during 20 minutes of remarks to the judge that FTX customers had suffered and he offered an apology to his former FTX colleagues.

A prosecutor with the U.S. Attorney's office in Manhattan told the judge, "The criminality here is massive in scale. It was pervasive in all aspects of the business."

Federal prosecutors had sought a prison sentence of 40 to 50 years.

Bankman-Fried's defense lawyer had argued that a sentence of less than 5-1/4 years would be appropriate.

He also tried to distance his client from other notorious fraudsters such as Bernie Madoff - saying, "Sam was not a ruthless financial serial killer who set out every morning to hurt people."

Bankman-Fried has vowed to appeal his conviction and sentence.

Advertisement

Recommended Stories

  • New Jersey Target employee thwarts 3 women stealing shopping cart full of merchandise: police

    New Jersey police said that three suspects nearly got away with a cart full of stolen items, until one Target employee took action.

  • Owner of exploded Michigan building arrested at airport while trying to leave US, authorities say

    The owner of a suburban Detroit business that caught fire and exploded, killing a man, was arrested at a New York airport as he was preparing to depart for Hong Kong on a one-way ticket, authorities said Friday. U.S. Customs and New York Port Authority personnel arrested Noor Noel Kestou, 31, on Saturday at John F. Kennedy International Airport. Kestou, of Commerce Township, was arraigned Thursday on an involuntary manslaughter charge.

  • Swindlers Are Now Using AI. Here Are the Warning Signs.

    Interactive deepfakes such as live phone calls or video conferences with what seems to be a real person are becoming more common.

  • Millennium Slams Jane Street ‘Gamesmanship’ in Secrets Case

    (Bloomberg) -- Millennium Management accused Jane Street Group of playing games by not fully disclosing the proprietary trading strategy it claims was stolen by two former traders who joined Izzy Englander’s hedge fund group.Most Read from BloombergApple Intensifies Talks With OpenAI for iPhone Generative AI FeaturesPlunging Home Prices, Fleeing Companies: Austin’s Glow Is FadingWall Street Humbled as Fast-Reversing Markets Confound the ProsThe Long, Slow Death of Urban NightlifeBHP’s $39 Billio

  • The economy is moving us back into the 19th century as fertility rates plunge

    The U.S. birth rate from 2023 was down 2% from 2022, according to the Centers for Disease Control and Prevention.

  • Temporary farmworkers get more protections against retaliation and other abuses under new rule

    Temporary farmworkers will have more legal protections against employer retaliation, unsafe working conditions, illegal recruitment practices and other abuses under a Labor Department rule announced Friday. The new rule, which takes effect June 28, will target abuses experienced by workers under the H-2A program that undermine fair labor standards for all farmworkers. California has a vast agricultural industry, growing over a third of the country’s vegetables and nearly three-quarters of the country’s fruits and nuts and attracting a large number of farmworkers.

  • United Auto Workers reaches deal with Daimler Truck, averting potential strike in North Carolina

    The United Auto Workers union announced it reached a last-minute tentative agreement with truck and bus manufacturer Daimler Truck, averting a potential strike of more than 7,000 workers. It covers workers at various plants in North Carolina — where Daimler makes Thomas Built Buses, Freightliner and Western Star trucks — as well as distribution centers in Atlanta and Memphis, Tennessee. In an online speech, UAW President Shawn Fain said the new contract includes wage increases of more than 25% over the next four years, including a 10% raise after the deal is ratified.

  • A New York Homeowner Was Arrested For Changing The Locks After Finding A Group Of Squatters In $1 Million Home She Inherited

    In Queens, New York, a homeowner's confrontation with unexpected occupants at her late father's house spiraled into a dramatic legal tangle that highlights the complex issue of squatter rights in the city. Adele Andaloro, 47, inherited a property valued at $1 million after her parents died. She discovered strangers living there during a visit to prepare the house for sale. When she changed the locks to secure the property, one of the occupants called the police, leading to her brief arrest. Thou

  • Deal averts strike at Daimler North America as UAW celebrates pact

    A possible strike by Daimler North America workers was averted at the last minute late Friday with a four-year deal. The post Deal averts strike at Daimler North America as UAW celebrates pact appeared first on FreightWaves.

  • Trump to set interest rates himself under secret presidential plan

    Donald Trump’s aides have drawn up secret plans to oust the chairman of the Federal Reserve and allow the president to set interest rates, according to reports.