- Sam Bankman-Fried sentenced to 25 years in prison
- The judge states that SBF showed no remorse for his crimes
- SBF made his bed himself by choosing to defend himself
Sam Bankman-Fried sentenced to 25 years in prison
Crypto King has fallen. Sam Bankman-Fried, the co-founder of the failed cryptocurrency exchange FTX, has been sentenced for his involvement in defrauding customers and investors of his firm. FTX is now bankrupt, and this ruling cemented the downfall of the company and the former billionaire.
By the time he was 30, Sam Bankman-Fried had made a million people believe he could safely manage their money. However, when he appeared in a Manhattan court with his curly hair and head down, he couldn't convince the most important person there—a federal judge who decided to send him to prison.
This collapse of a popular company was a big scandal in the cryptocurrency industry. Sam Bankman-Fried was one of the "kids" who started their business from one room with their computers on their laps[1].
However, branded as a Golden Boy, SBF made some questionable decisions with his business. His firm collapsed in 2022, and he was found to have stolen from customers before the failure. His legal team should file an appeal against this conviction, but he is definitely going to prison[2].
The judge states that SBF showed no remorse for his crimes
Sam Bankman-Fried is the disgraced cryptocurrency mogul, and he is responsible for one of the largest financial frauds in history. It was reported that he might face up to 50 years in prison, while his team argued that the sentencing should be no more than 5,5 years. He has been sentenced to 25 years in jail and was ordered to forfeit 11 billion dollars in assets.
Despite being supported by well-known people like Bill Clinton, the former US president, and Eric Adams, the mayor of New York, the founder of FTX was not who he seemed. Judge Lewis Kaplan said Bankman-Fried acted like he was a good person who supported proper rules for the cryptocurrency world, but it was all just an act.
Bankman-Fried's behavior played a big role in the judge's decision. During a two-hour court session, the judge repeated Bankman-Fried's own words that showed he didn't take his actions seriously. He had once told a reporter, shortly after his company FTX failed, that his support for stricter cryptocurrency laws was only for show, saying "I don't care about the regulators".
According to Rachel Maimin, a former federal prosecutor, S. Bankman-Fried had made many public statements that showed he didn't understand how serious his crime was. He seemed not to realize the importance of what he did wrong[3].
SBF made his bed himself by choosing to defend himself
Evidence in the trial showed that Bankman-Fried tried to fix his image right before his company went bankrupt in November 2022, leaving an $8 billion gap. He continued to try to reassure his customers through tweets and conversations with reporters, even after FTX failed and he was charged. He also shared his story with Michael Lewis, a famous author.
Bankman-Fried chose to speak in his own defense during the trial, which turned out to be a big mistake, a strategy that many lawyers dealing with financial crimes usually advise against. His attempt to explain the downfall of FTX didn't convince the jury. After only a short period of discussing the case, they found him guilty of seven charges, including fraud and money laundering.
Judge Kaplan believed that Bankman-Fried had lied during his testimony about several issues, including the moment he became aware of the $8 billion deficit and the illegal use of customer funds. Kaplan also paid close attention to statements Bankman-Fried made to Caroline Ellison, a former colleague and once his girlfriend who testified against him. She shared how Bankman-Fried claimed to be "risk neutral" and discussed taking big risks if there was a chance of benefit, even if it meant potential disaster.
Ellison also remembered Bankman-Fried estimating a "5 percent chance" of becoming the US president, which Kaplan took as evidence of Bankman-Fried's desire for significant political influence in the country. The court also heard how Bankman-Fried's personal notes, made after FTX went bankrupt and submitted before the sentencing, showed he considered starting a similar venture again if the numbers made sense.
Judge's remarks indicate he saw Bankman-Fried as someone with a selfish worldview who should be isolated from society for a while. Despite all this, Bankman-Fried had been a leading figure in promoting cryptocurrency, aiming to make it widely available. His arrest and FTX's rapid failure were seen as a major setback for the cryptocurrency industry. However, contrary to expectations, the global cryptocurrency markets have experienced a resurgence.
