Crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison following his conviction for embezzling billions of dollars from customers.
Bankman-Fried, former CEO of FTX and nicknamed the “Crypto King”, saw his company collapse abruptly in November 2022, leaving millions unable to access their accounts.
Initially facing a potential 100-year sentence, his defence argued for a more lenient term, settling on five years. However, the judge imposed a 25-year sentence, correcting previous reports of 20 years.
The trial revealed a $10 billion financial shortfall in FTX’s accounts, impacting around 80,000 UK-based users, many of whom lost their life savings.
Prosecutors had sought 40 to 50 years, citing the need to protect the public and deter future fraud. Bankman-Fried had established secret backdoors allowing his other company, Alameda Research, to access customer funds for risky investments without their consent.
During sentencing, Judge Lewis Kaplan criticised Bankman-Fried’s dishonesty and dismissed his promise of full restitution to victims as misleading. He said, “A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on the sentence by using his Las Vegas winnings to pay back what he stole.”
The case, described by prosecutors as one of the largest financial frauds in US history, underscores the risks associated with cryptocurrency investments and the need for stringent regulation to protect consumers.
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