FTX cryptocurrency exchange co-founder Sam Bankman-Fried has been sentenced to 25 years in prison for stealing billions of dollars from customers and defrauding investors.
Bankman-Fried, a one-time cryptocurrency guru has also been ordered to pay US$11 billion in restitution.
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The sentence was handed down by New York judge Lewis Kaplan on Thursday. At 25 years, the sentence is half the length of the prison term recommended by prosecutors, but significantly harsher than the six years requested by Bankman-Fried’s lawyers.
Explaining why he was locking Bankman-Fried away for more than two decades, Kaplan told the court that “there is a risk that this man will be in a position to do something very bad in the future, and it’s not a trivial risk.”
Investogist reported in November that Sam Bankman-Fried was found guilty of fraud and money laundering in connection with the collapse of his crypto empire.
Bankman-Fried will appeal both his conviction and his 25-year sentence, his lawyers said.
A message from his parents shared with the BBC by a representative for Bankman-Fried said: “We are heartbroken and will continue to fight for our son.”
Ahead of his sentencing Bankman-Fried said in court he knew “a lot of people” felt “really let down”.
“I’m sorry about what happened at every stage,” the FTX founder said in court on Thursday. “At the end of the day, I failed everyone I cared about.”
FTX was one of the world’s largest crypto exchanges before its demise, turning Bankman-Fried into a business celebrity and attracting millions of customers who used the platform to buy and trade cryptocurrency.
Before his crimes were exposed, Bankman-Fried was worth more than $22 billion, making him the 32nd-richest American, according to Forbes magazine. Bankman-Fried met with heads of state, advised the US Congress on cryptocurrency regulation, and vowed to eventually give away his wealth for the betterment of humanity.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
