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FTX Founder Sentenced To 25 Years In Prison For Fraud

FTX Founder Sentenced To 25 Years In Prison For Fraud
Sam Bankman-Fried, former Chief Executive Officer (CEO) and founder of Futures Exchange (FTX), has been sentenced to 25 years in prison after being convicted of defrauding his customers, investors, and lenders.

Gatekeepers News reports that Bankman-Fried was sentenced on Thursday in a Manhattan federal court presided by Judge Lewis Kaplan.

The 31-year-old crypto expert faced up to 110 years, however, prosecutors argued for a sentence of 40 years to 50 years, while Bankman-Fried’s lawyers asked for six and a half years.

At the court, his lawyers argued Bankman-Fried “eschews materialistic trappings” and suffers from a severe condition that causes his “near-complete absence of enjoyment, motivation, and interest”.

But Kaplan said he would recommend to the bureau of prisons that Bankman-Fried be placed in a medium-security facility or any lower-security facility the bureau finds appropriate.

Medium-security federal prisons have strengthened perimeters — often double fences with electronic detection systems — and mostly cell housing, according to the bureau of prisons.

Just before announcing Bankman-Fried’s 25-year sentence, Kaplan said there was a risk “that this man (Bankman-Fried) will be in a position to do something very bad in the future, and it’s not a trivial risk”.

“Bankman-Fried acknowledged his mistakes and said he was sorry for what happened to customers but never a word of remorse for the commission of terrible crimes,” Kaplan said.

“He knew it was wrong.”

The judge also said many facts are not disputed, including that the former FTX boss had “an exceptionally privileged background”.

“He is extremely smart. And he suffers from autism, and is capable of huge accomplishments,” he said.

Kaplan also agreed with prosecutors’ claim that Bankman-Fried “wanted to be a hugely, hugely politically influential person in this country,” and that propelled his financial crimes.

In 2022, Bankman-Fried was arrested by Bahamian authorities due to criminal charges filed by the US government.

On November 3, 2023, Bankman-Fried was found guilty of fraud and money laundering at the end of a month-long trial in New York.

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