Following a highly anticipated sentencing hearing, Sam Bankman-Fried, the former CEO of FTX, has been handed down a significant sentence for stealing billions of dollars from customers.
The sentencing, announced by Judge Lewis Kaplan in a Manhattan Federal court, marks a significant chapter in the saga surrounding the downfall of the once-prominent cryptocurrency figure.
Bankman-Fried's sentencing follows a monthlong trial in November, during which he was found guilty of seven charges tied to the collapse of FTX and the disappearance of approximately $10 billion in customer deposits.
Sam Bankman-Fried Sentenced
While prosecutors had requested that SBF spend 40 to 50 years in prison, reports stated the defense team had argued for five to six years in jail based on the hope that FTX customers would be able to recoup most, if not all, of the money they lost when the exchange spiraled into bankruptcy in 2022.
Last month, lawyers representing FTX's bankruptcy estate told a Delaware judge that they expect to fully repay customers and creditors with legitimate claims, although there is still a great amount of work and risk ahead in getting all the money back to clients.
In the end, Bankman-Fried was sentenced to 25 years in prison for the fraud and conspiracy scheme that resulted in the bankruptcy of his once prominent crypto exchange. SBF was also fined $11 billion.
Judge Kaplan stated that Bankman-Fried never presented "a word of remorse for [the] commission of terrible crimes."
The decision was made by the judge after a two-hour hearing in a Manhattan courtroom where prosecutors, Bankman-Fried himself, Bankman-Fried's attorney, a victim, and a lawyer who spoke on behalf of other FTX victims made comments.
"Sam Bankman-Fried's 25 year prison sentence signifies the end of one of crypto's worst cases of fraud and conspiracy to date," John Carter, Crypto Public Relations Executive, told Investing.com.
"The impact of FTX's insolvency on the crypto ecosystem will forever be remembered as the defining catalyst of the previous crypto winter. The decision marks the end of an era and will hopefully be a step closer to broader crypto regulation through meaningful precedent."
In a statement, Damian Williams, U.S. Attorney for the Southern District of New York, said: “Samuel Bankman-Fried orchestrated one of the largest financial frauds in history, stealing over $8 billion of his customers’ money.”
"Today's sentence will prevent the defendant from ever again committing fraud and is an important message to others who might be tempted to engage in financial crimes that justice will be swift, and the consequences will be severe."
Bitcoin price is up more than 3% on the day.