Ex-FTX CEO Sam Bankman-Fried Gets a 25-Year Sentence and $11 Billion Forfeiture for Felonies
Summary:
Ex-FTX CEO, Sam Bankman-Fried (SBF) has been sentenced to 25 years in prison by Federal Judge Lewis Kaplan for multiple felony convictions. SBF started his term in August 2023 at the Metropolitan Detention Center and is expected to serve the remainder in a medium- or low-security prison in San Francisco. Parole is not offered for federal offense sentences, but inmates demonstrating "good conduct" can get a 54-day reduction per year served. SBF's lawyer, Marc Mukasey, plans to appeal the jury's verdict, which comes with an $11-billion forfeiture to ensure SBF's future earnings go toward the government and victims.
Ex-FTX CEO, Sam “SBF” Bankman-Fried, has been sentenced to a 25-year prison term for his numerous felony crimes, sparking diverse responses from those within and outside the cryptocurrency industry. On March 28, Judge Lewis Kaplan delivered a strict verdict against Bankman-Fried, both ahead and following his declaration of a 25-year jail term, combining two sentences of 240 months and 60 months. Kaplan alluded to SBF as a "thief," discredited his call for crypto regulation as “deception,” and accused him of perjury and disregarding the survival of life on earth.
Where and how long will Sam Bankman-Fried's prison time be?
Bankman-Fried's incarceration commenced at the Metropolitan Detention Center in Brooklyn in August 2023 after Judge Kaplan overturned his bail due to instances of witness tampering in his criminal case. A dossier entry dated March 28 from the U.S. District Court for the Southern District of New York suggests a deduction of already served time from his sentence, presupposing a maximum of 291 months of incarceration, concluding in 2048.
Judge Kaplan ruled that Bankman-Fried would conclude the rest of his term at either a medium-security or low-security prison in the San Francisco Bay Area, with possible sites including the Federal Correctional Institution (FCI) Herlong and FCI Mendota. The designated facility for Bankman-Fried at the time of reportage was not yet confirmed.
In response to the sentencing on March 28, several social media reactions questioned the likelihood of Bankman-Fried serving the full term. As per U.S. law, parole is not offered to individuals sentenced on federal offenses. Regardless, inmates demonstrating "good conduct" can avail of a 54-day reduction per year served. In Bankman-Fried’s case, that equates to approximately 3.75 years, reducing the sentence to approximately 21 years, estimated to conclude in 2045. If he qualifies for early release due to good behavior, the former CEO, now 32, could be in his mid-fifties.
Appeal against the verdict
Before Judge Kaplan declared the 25-year sentence, Bankman-Fried's attorney, Marc Mukasey, indicated plans to appeal the jury's verdict. The legal team has two weeks to file necessary documentation in court. For many in the crypto world, a 25-year jail term for Bankman-Fried seemed insufficient, considering the effect on FTX users.
As for the financial ramifications, the FTX bankruptcy process is currently underway in the District of Delaware. Here, creditors have proposed a repayment scheme to users based on the exchange's value at the time of its collapse. Accompanying Bankman-Fried's criminal case, Judge Kaplan ratified an $11-billion forfeiture, implying that any future earnings made by SBF would go not to him, but to the government and the victims of his actions. Mitchell Epner, an ex-federal prosecutor, suggests that in case Bankman-Fried starts another lucrative venture after his release, the government could seize these funds. The same rule would apply to unexpected gains, which makes it improbable for SBF to regain his pre-November 2022 financial status.
Published At
3/29/2024 8:45:58 PM
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