Former FTX CEO Sam Bankman-Fried Sentenced to 25 Years for Misuse of User Funds
Summary:
Sam “SBF” Bankman-Fried, the former CEO of cryptocurrency exchange FTX, has been sentenced to 25 years in prison for misappropriation of user funds. The sentence followed a major fall of the exchange over 500 days ago. While some crypto enthusiasts felt the sentence was lenient, considering the severity of SBF's crimes, others believed it could serve as a strong deterrent for wrongdoing in the crypto space. Former FTX executives such as Ryan Salame, Gary Wang, Caroline Ellison and Nishad Singh are also facing legal consequences in relation to the case.
It's been over 500 days since the fall of the crypto exchange FTX, and now its former CEO, Sam “SBF” Bankman-Fried, knows his fate: 25 years behind bars. During a court session on 28th March, Judge Lewis Kaplan sentenced the ex-FTX chief to 300 months imprisonment consequent to his conviction for misuse of client funds. Although the prosecution demanded a sentence of up to 50 years, his defence lawyers asked for a maximum of 6.5 years. The judge pointed out that the ex-boss had also engaged in perjury and witness intimidation.
After the pronouncement was made in the New York courtroom, the verdict spurred a flurry of commentary among online crypto enthusiasts. Many opined that a 25-year prison sentence was lenient considering harsher punishments given for less severe offences. "[The judge] gave him less than Chelsea Manning (35 years) for a waaaaay worse crime," commented Edward Snowden on X platform, citing Manning's 2013 espionage convictions.
Though the sentencing rules permitted Judge Kaplan to incarcerate SBF for over 100 years, many observers anticipated a less stringent verdict. A host of legal professionals predicted a jail term ranging between 10 to 30 years for Bankman-Fried, suggesting it could serve as a dissuasive measure in the crypto circles.
"Judge Kaplan considered all the aspects, including the severity of the crime, his judgement that SBF lied in court and manipulated a witness, and pronounced a significant sentence," Mark Bini, a former Assistant U.S. Attorney in the Eastern District of New York, told Cointelegraph. He added that the sentence, though less than the 40-50 years the prosecutors demanded, was enough to send a strong message to crypto-related convicts.
In contrast, Swan Bitcoin Managing Director Terrence Yang disagreed with Bini's view, stating to Cointelegraph that the 25-year sentence was too lenient considering the number of suicides that followed the FTX collapse, SBF's perjury, and misuse of user funds.
"The level of harm SBF inflicted was severe and irreversible," Yang articulated. "His criminal actions brought about the ruin of many families and lives, and he further rubbed salt into their wounds with his utter lack of remorse. I acknowledge that he has ADHD and there were pleas for leniency on account of this, but it should be noted that SBF is the only person with ADHD globally who stole billions in client funds causing massive hurt and pain."
Following the court session on March 28, Bankman-Fried was escorted to the Metropolitan Detention Center in Brooklyn to commence his sentence, where he's been held since Judge Kaplan cancelled his bail back in August 2023. The next sentencing in this case will likely be that of Ryan Salame, the former FTX Digital Markets co-CEO, planned for May 1. Other prior executives linked to FTX and Alameda Research – Gary Wang, Caroline Ellison, and Nishad Singh – have already made their guilty pleas and settled deals.
Published At
3/28/2024 8:40:00 PM
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