Published , by TJ Denzer
Published , by TJ Denzer
The saga of Sam Bankman-Fried and the collapse of FTX has reached a conclusion in courts and it looks like he’s going to prison for a life sentence. The decision was passed down by U.S. District Judge Lewis A. Kaplan, who imposed the sentence in a Manhattan courtroom where Bankman-Fried had testified four months prior. In addition to the 25-year prison sentence, Bankman-Fried will be forced to forfeit $11 billion.
The verdict of Sam Bankman-Fried’s case was handed down this week, as reported by the Associated Press. In the aftermath of the case, Judge Kaplan passed down his reasoning for the verdict, expressing that there was a threat Bankman-Fried could do similar harm in the future if left unchecked:
“There is a risk that this man will be in position to do something very bad in the future. And it’s not a trivial risk at all,” Judge Kaplan wrote, adding that the sentence is “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time.
Kaplan’s sentencing is still less severe than what prosecutors were calling for. The prosecution advised a 40 to 50 year sentence on Bankman-Fried for the sheer amount of people and business that was jeopardized by the collapse of FTX. There were also the allegations of conspiracy, including possible witness tampering that added to Bankman-Fried’s legal troubles. Ultimately, he was found guilty on multiple counts of fraud for this trial.
“The defendant victimized tens of thousands of people and companies, across several continents, over a period of multiple years. He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence,” the prosecution said in its filings.
Either way, it seems Sam Bankman-Fried is paying a hefty price for the way FTX played out. With his sentence decided, it will remain to be seen if we ever hear from him in the business or financial world for the next decades. Stay tuned for any further updates here at Shacknews.