Ex-FTX CEO Sentenced to 25 Years; First to be Jailed Following Exchange's Collapse
Summary:
Ex-FTX CEO Sam Bankman-Fried has been sentenced to 25 years in prison on seven felony charges, including witness tampering. The trial saw claims that Bankman-Fried was at fault for the collapse of the crypto exchange platform, FTX, and the subsequent loss of investor funds, though he denied any wrongdoing. Ironically, Sam Bankman-Fried becomes the first individual linked to FTX and Alameda Research to face imprisonment. Testimonies from former colleagues and victims filled a packed courtroom. It's noteworthy that former colleagues charged in the same case have admitted guilt and accepted deals. Further details are expected about the unfolding story soon.
Ex-FTX CEO Sam “SBF” Bankman-Fried has been ordered to serve a term of XXX years behind bars, an outcome from a sentencing trial in federal court. On the 28th of March, United States District Court Judge for the Southern District of New York, Lewis Kaplan, handed down a sentence of 240 plus 60 months to Bankman-Fried. This totals 25 years for his conviction on seven felony counts. SBF becomes the first individual associated with FTX and Alameda Research to be incarcerated after the exchange's November 2022 collapse. The Judge decided that SBF was also guilty of witness tampering and perjury based on his decision to revoke bail in August 2023 and the trial evidence about FTX's users' funds. Recognising Bankman-Fried’s "socially awkward" persona, the judge nevertheless highlighted that the ex-Alameda Research CEO, Caroline Ellison’s testimony indicated SBF was aware of his wrongdoing yet stayed in denial. "The penalty must correspond to the severity of the offense," stated Judge Kaplan. "[Bankman-Fried] was elusive and nitpicking when not lying and made attempts to prompt revision of the prosecutors' questions. After spending nearly three decades on the job, this is a first for me." Inner City Press reporter Matthew Lee reports that the New York courtroom was filled with members of the public and officials before the introduction of Bankman-Fried by U.S. Marshals. The former FTX CEO was attired in light brown — the uniform associated with Brooklyn's Metropolitan Detention Center, where he has been held since bail was withdrawn. According to Inner City Press, Judge Kaplan rejected the defense’s argument about loss on both legal and factual grounds, saying that guarantees of repayment to customers and creditors are misleading and bear no relevance to the severity of the crime committed. Prior to the announcement of his sentence, Bankman-Fried expressed his “regret at every turn,” maintaining that “FTX could have carried on” had it not been forcibly closed. His legal team presented Bankman-Fried as a misunderstood virtuoso in their closing remarks. Sunil Kavuri, a U.K resident who flew in from London to be present at the sentencing trial, testified that he had “endured for two years” following FTX's collapse. On behalf of other victims, Kavuri rebutted claims that the “loss was zero” owing to the repayment plans put forward by the exchange. Assistant U.S. Attorney Nicolas Roos stated that Bankman-Fried would relapse if he "believed the math justified it" and pointed out a lack of acknowledgement of his culpability from the ex-CEO. Judge Kaplan’s final verdict bridged the gap between the respective recommendations from SBF’s lawyers and the prosecutors for a maximum of 6.5 and 50 years. It was generally projected by many specialists that Judge Kaplan would rule between 10 and 30 years, considering the details of the case and the amount of funds implicated. Former FTX and Alameda counterparts Gary Wang, Caroline Ellison, Nishad Singh and Ryan Salame, also indicted in the same case as SBF, have admitted culpability and agreed to deals. Salame, the preceding co-CEO of FTX Digital Markets, who abstained from bearing witness at Bankman-Fried’s criminal trial, is likely to be sentenced next on May 1. We will continue to report on this story as additional details emerge.
Published At
3/28/2024 6:50:32 PM
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