Sam Bankman-Fried, co-founder of the US cryptocurrency trading platform FTX, was sentenced to 25 years in prison for stealing client funds, marking the beginning of a case that has upended the crypto industry. The final outcome.

U.S. District Judge Lewis A. Kaplan handed down the sentence in Manhattan federal court after Bankman-Fried said he was "sorry for what happened at every stage." Last year he was found guilty of seven counts including fraud and conspiracy.

The one-time billionaire became a symbol of blasphemy and greed in the crypto world after the collapse of his popular FTX exchange, with years of fraud uncovered that cost him money from customers, investors and lenders. About $10 billion was defrauded there.

Bankman-Fried, 32, denies intentional fraud and claims he and his crypto empire were victims of the 2022 market downturn. Prosecutors had asked for a 50-year sentence, but Bankman-Fried's lawyers had asked for only six and a half years. While there is no parole system in the federal system, he could be released years early for good behavior.

Judge Kaplan dismissed Bankman-Fried's 20-minute statement, saying he was not truly remorseful but focused on the seriousness of the crime. The verdict all but ensures that the former prodigy will spend his 50th birthday in prison. Kaplan said:

"It's possible that this person could do something very bad in the future. It's not a trivial risk, absolutely not."

Bankman-Fried, wearing a tan prison uniform and with his hair slicked back in stark contrast to the short hair he wore at trial, stood with his hands clasped as the judge read the verdict. He did not react, his eyes downcast. Kaplan said in addition to prison time, Bankman-Fried should also forfeit more than $11 billion in assets. The judge said he would recommend that he be held in a jail near his parents' home in California, noting that his notoriety and autism make him more vulnerable.

Bankman-Fried has expressed his intention to appeal the verdict and he also has the right to challenge the verdict. At trial, prosecutors said Bankman-Fried misappropriated billions of dollars from FTX to sister hedge fund Alameda Research for speculative investments, more than 300 political donations and expensive real estate. Lenders began demanding the return of their funds in 2022 due to market volatility, and Bankman-Fried used FTX client funds to repay it.

But the rush of customer withdrawals eventually led to FTX filing for bankruptcy in November 2022, and Bankman-Fried resigned as CEO. While prosecutors compared Bankman-Fried to Bernie Madoff, who was sentenced to 150 years in prison for a massive Ponzi scheme, his sentence was closer to that of former Enron Corp. CEO Jeffrey Skilling, who was convicted of accounting fraud. The sentence imposed. The latter was sentenced to 24 years in prison, but his sentence was reduced on appeal.

“While the sentence is less than the 40 to 50 years that prosecutors had requested, it is a very significant sentence,” said Mark Bini, a former federal prosecutor and now an attorney at Reed Smith. It “sends a message that there will be serious consequences for people convicted of crimes in the crypto space.”

Bankman-Fried's parents issued a statement after the verdict: "We are heartbroken and will continue to fight for our son." But the judge and prosecutors disagreed with the portrayal of Bankman-Fried as a socially awkward do-gooder.

Assistant U.S. Attorney Nicolas Roos said: "This was an enterprise rife with criminal conduct. While some of it sounds good, it's troubling because if Mr. Bankman-Fried thought math could If it's justified, he'll do it again."

In her statement, Bankman-Fried sought to place some of the blame for customers' delays in getting their money back on the company's post-bankruptcy administrators. He said there are enough funds available to return customers more quickly.

At least one former FTX victim is unhappy with his 25-year prison sentence. "This is a disgustingly light sentence and an insult to the victims. Where is the justice?" said Arush Sehgal, who has assets worth more than $4 million on the exchange.

Article forwarded from: Golden Ten Data