FTX Co-Founder Sentenced to 25 Years in Prison
His calculated actions and lack of remorse lead to a hefty verdict despite efforts to mitigate sentencing.
Jane Molepo 
Sam Bankman-Fried, co-founder of FTX, received a hefty prison sentence totaling 25 years for his involvement in seven counts of conspiracy and fraud surrounding the collapse of the cryptocurrency exchange he helped establish. The sentencing, delivered by Judge Lewis Kaplan, includes a 20-year term for four charges and an additional five years for two others. Bankman-Fried has also been directed to forfeit over $11 billion, including property, as recommended by prosecutors.
Although the sentence falls short of the 40 to 50 years requested by prosecutors, Judge Kaplan deemed it sufficient, surpassing the defense's plea for a six and a half-year term but falling well below the maximum possible sentence of 110 years.
Throughout the trial, Judge Kaplan emphasized Bankman-Fried's awareness of the substantial risks facing FTX, the unauthorized use of customer funds, and the conscious wrongdoing inherent in his actions. Bankman-Fried's rationale, based on a calculated risk-reward assessment, failed to justify his misconduct in Kaplan's view.
Before announcing the sentence, Judge Kaplan dismissed the defense's speculation about potential reimbursements to affected parties, citing the staggering $8 billion in losses incurred by FTX customers. He also highlighted Bankman-Fried's attempts to obstruct justice, commit perjury, and misrepresent his knowledge of the missing funds.
Despite FTX's crypto holdings and its stake in Anthropic, an AI company, Judge Kaplan rejected any leniency, likening Bankman-Fried to a thief trying to reduce his sentence with ill-gotten gains. Bankman-Fried's involvement in falsifying data, favoring his trading fund, Alameda Research, and his erratic testimony further undermined his defense.
The swift jury conviction in just four hours underscored the lack of credibility in Bankman-Fried's testimony. Judge Kaplan expressed astonishment at Bankman-Fried's evasiveness and apparent lack of remorse, describing it as unprecedented in his three decades on the bench.
Contrary to claims by his legal team, Bankman-Fried's conduct suggests a lack of genuine remorse. His incarceration since August 11th, 2023, due to bail violations, including tampering with witnesses, has been challenging, including inadequate dietary options and extortion attempts.
Bankman-Fried's lawyers strongly opposed the probation department's recommendation of a 100-year sentence, arguing that his age warranted a different approach compared to high-profile cases like that of Bernie Madoff. Despite Madoff's symbolic 150-year sentence, served for 12 years before his death, Bankman-Fried's defense insists on a more lenient outcome.
