{"id":5936,"date":"2024-03-28T19:00:44","date_gmt":"2024-03-28T17:00:44","guid":{"rendered":"https:\/\/ch.jfdi.cc\/?p=5936"},"modified":"2024-03-28T19:00:44","modified_gmt":"2024-03-28T17:00:44","slug":"bankman-fried-sentenced-to-25-years-for-multi-billion-dollar-ftx-fraud","status":"publish","type":"post","link":"https:\/\/ch.jfdi.cc\/?p=5936","title":{"rendered":"Bankman-Fried sentenced to 25 years for multi-billion dollar FTX fraud"},"content":{"rendered":"
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Sam Bankman-Fried was sentenced to 25 years in prison by a judge on Thursday for stealing $8 billion from customers of the now-bankrupt FTX cryptocurrency exchange he founded, the last step in the former billionaire wunderkind\u2019s dramatic downfall.<\/p>\n

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U.S. District Judge Lewis Kaplan handed down the sentence at a Manhattan court hearing after rejecting Bankman-Fried\u2019s claim that FTX customers did not actually lose money and accusing him of lying during his trial testimony. A jury found Bankman-Fried, 32, guilty on Nov. 2 on seven fraud and conspiracy counts stemming from FTX\u2019s 2022 collapse in what prosecutors have called one of the biggest financial frauds in U.S. history.
\nKaplan said Bankman-Fried had shown no remorse.
\n\u201cHe knew it was wrong,\u201d Kaplan said of Bankman-Fried before handing down the sentence. \u201cHe knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right.\u201d
\nBankman-Fried stood with his hands clasped before him as Kaplan read the sentence. He was led out of the courtroom by members of the U.S. Marshals Service when the hearing ended.
\nBankman-Fried, wearing a beige short-sleeve jail t-shirt, acknowledged during 20 minutes of remarks to the judge that FTX customers had suffered and he offered an apology to his former FTX colleagues.
\nThe sentence marked the culmination of Bankman-Fried\u2019s plunge from an ultra-wealthy entrepreneur and major political donor to the biggest trophy to date in a crackdown by U.S. authorities on malfeasance in cryptocurrency markets. Bankman-Fried has vowed to appeal his conviction and sentence.
\nKaplan said he had found that FTX customers lost $8 billion, FTX\u2019s equity investors lost $1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost $1.3 billion.
\n\u201cThe defendant\u2019s assertion that FTX customers and creditors will be paid in full is misleading, it is logically flawed, it is speculative,\u201d Kaplan said. \u201cA 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.\u201d
\nThe judge also said Bankman-Fried lied during his trial testimony when he said he did not know that his hedge fund had spent customer deposits taken from FTX.
\nFederal prosecutors had sought a prison sentence of 40 to 50 years. Bankman-Fried\u2019s defense lawyer Marc Mukasey had argued that a sentence of less than 5-1\/4 years would be appropriate.
\nAddressing the judge, Bankman-Fried said, \u201cCustomers have been suffering\u2026 I didn\u2019t at all mean to minimize that. I also think that\u2019s something that was missing from what I\u2019ve said over the course of this process, and I\u2019m sorry for that.\u201d
\nReferring to his FTX colleagues, Bankman-Fried told the judge, \u201cThey put a lot of themselves into it, and I threw that all away. It haunts me every day.\u201d
\nThree of his former close associates testified as prosecution witnesses at trial that he had directed them to use FTX customer funds to plug losses at Alameda Research.
\n\u2018MASSIVE IN SCALE\u2019<\/strong>
\nNicolas Roos, a prosecutor with the U.S. Attorney\u2019s office in Manhattan, told the judge, \u201cThe criminality here is massive in scale. It was pervasive in all aspects of the business.\u201d
\nDuring the hearing, Mukasey sought to distance his client from notorious fraudsters like Bernie Madoff.
\n\u201cSam was not a ruthless financial serial killer who set out every morning to hurt people,\u201d Mukasey said, describing his client as an \u201cawkward math nerd\u201d who worked hard to get customers their money back after FTX\u2019s collapse.
\n\u201cSam Bankman-Fried doesn\u2019t make decisions with malice in his heart,\u201d Mukasey added. \u201cHe makes decisions with math in his head.\u201d
\nBankman-Fried testified in his own defense that he made mistakes such as not implementing a risk management team, but denied he intended to defraud anyone or steal customers\u2019 money.
\nHis parents, Stanford University law professors Joseph Bankman and Barbara Fried, attended the sentencing.
\nA Massachusetts Institute of Technology graduate, Bankman-Fried rode a boom in the values of bitcoin and other digital assets to a net worth of $26 billion, according to Forbes magazine, before he turned 30.
\nBankman-Fried became known for his mop of unkempt curly hair and commitment to a movement known as effective altruism, which encourages talented young people to focus on earning money and giving it away to worthy causes. He also was one of the biggest contributors to Democratic candidates and political causes ahead of the 2022 U.S. midterm elections.
\nBut prosecutors have said the responsible image he cultivated concealed his years-long embezzlement of customer funds.
\nBankman-Fried has been detained at the Metropolitan Detention Center in Brooklyn since August 2023, when Kaplan revoked his bail after finding he likely tampered with witnesses at least twice.<\/p>\n","protected":false},"excerpt":{"rendered":"

Fact: Sam Bankman-Fried was sentenced to 25 years in prison for stealing billion from customers of the now-bankrupt FTX cryptocurrency exchange he founded.<\/p>\n","protected":false},"author":3,"featured_media":5937,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[1972,77,186,1918,932,1618,1470,3979,3471,3,3496,612,3929,260,153,1059,2110,250,3330,3895,658,3404,2667,387,34,3747,2628,3331,131,1462,1579,2920,3980,3817,1682,2503,1906],"class_list":["post-5936","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-other","tag-appeal","tag-bitcoin","tag-business","tag-conspiracy","tag-court","tag-court-hearing","tag-cryptocurrency","tag-cryptocurrency-markets","tag-customers","tag-cyprus","tag-defendant","tag-deposits","tag-detention","tag-dollar","tag-elections","tag-fraud","tag-funds","tag-google","tag-google-news","tag-hearing","tag-history","tag-investors","tag-jail","tag-lost","tag-markets","tag-missing","tag-money","tag-news","tag-prison","tag-prison-sentence","tag-prosecution-witnesses","tag-sentence","tag-sentencing","tag-tampered-with","tag-technology","tag-testimony","tag-trial"],"acf":{"keyphrase":"","keywords":"","sourceimg":"","country-category":""},"yoast_head":"\nBankman-Fried 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