- Sam Bankman-Fried was yesterday sentenced to 25 years for his instrumental role in the collapse of FTX
- Judge Kaplan noted Bankman-Fried’s lack of remorse over his actions, which didn’t help his case
- Bankman-Fried’s lawyer has stated that they plan to appeal
Former FTX CEO Sam Bankman-Fried, once a key player in the industry, was yesterday sentenced to 25 years in prison and ordered to forfeit a staggering $11 billion in assets. The ruling marks a stunning downfall for the FTX co-founder, although his lawyer announced that an appeal was imminent. Bankman-Fried’s story has captivated the world due to its scale and the brazenness of the protagonist, but the crypto world will be hoping that it can finally draw a line underneath it and move on.
“Calculating Math Genius” Gets Tough Sentence
Bankman-Fried was found guilty in November of seven counts of wire fraud and conspiracy to launder money following revelations that surfaced after the exchange collapsed in November 2022.
Prosecutors, pushing for a harsher sentence, argued in a pre-sentencing filing that Bankman-Fried’s crimes demonstrated a callous disregard for the law and the well-being of investors and had asked Judge Kaplan for a sentence of 40-50 years. Conversely, Bankman-Fried’s attorneys had petitioned for a sentence of around a decade.
During the sentencing proceedings, Judge Lewis Kaplan delivered scathing remarks, characterizing Bankman-Fried as a “calculating math genius” who knowingly engaged in fraudulent activities. Bankman-Fried himself offered a semblance of apology, attributing FTX’s downfall to a string of poor choices and expressing regret for FTX’s crisis.
He also commended former colleagues, including co-founder Gary Wang and ex-girlfriend Caroline Ellison, who testified against him, and summarized his position by saying, “My useful life is probably over.”
Judge Kaplan Dismissed Defense Mitigation Claims
During the hearing, Judge Kaplan dismissed several defense arguments regarding sentencing guidelines and highlighted Bankman-Fried’s perjury during the trial, comparing the defense’s suggestion of repaying customers to a thief hoping for leniency after gambling away stolen loot. Kaplan also remarked that no genuine remorse was evident from Bankman-Fried, saying, “He knew it was wrong, he knew it was criminal.”
This attitude almost certainly contributed to the lengthy sentence, which, if he serves the full term, will see Bankman-Fried released at the age of 57. However, Bankman-Fried’s lawyer pledged to fight the sentence, emphasizing the former CEO’s regret over his actions and acknowledgment of responsibility for the collapse of FTX during the trial.
The FTX debacle has been the abiding memory many have taken from the last bull run, alongside the collapse of the Terraform Labs ecosystem, which undermines the progress made by legitimate projects to integrate cryptocurrencies and blockchain into the world.
