It is worth noting that before the collapse, FTX was one of the largest cryptocurrency exchanges in the world. Rumors of financial problems led to a deposit run in 2022, accelerating the firm’s collapse and exposing Bankman-Fried’s criminal activities.
Last year, New York jurors found the founder of FTX guilty of using digital assets and conspiring to launder money. The court discussed $8 billion embezzled from clients, which were spent on real estate purchases, investments, and political donations.
Before delivering the sentence, Judge Lewis Kaplan sharply criticized Bankman-Fried’s behavior for his false testimony in court. The defendant expressed regret for the loss of clients but never once showed remorse for committing horrendous crimes.
The founder of the largest crypto exchange faced up to 110 years, but prosecutors urged to reduce the sentence to 40 years. Bankman-Fried’s lawyers argued for a more objective punishment of up to 6.5 years, citing the defendant’s mental health issues.
Former federal prosecutor Mitchell Epner, now an attorney at Rottenberg Lipman Rich, expressed surprise at the court’s decision as Bankman-Fried could potentially be released from prison in about 13 years.
Jennifer Taub, a law professor at the University of Western New England and an expert in white-collar crimes, stated that the sentence was appropriate.
In his remarks on the sentence, Judge Kaplan stated that life imprisonment was unnecessary, but Bankman-Fried must receive a punishment that would prevent him from committing crimes in the future. In addition to serving 25 years, the defendant will also have $11 billion confiscated for compensating the victims.