The founder of the bankrupt crypto exchange FTX, Sam Bankman-Fried, should receive forty to fifty years in prison for his role in the major fraud at FTX. Prosecutors initiated the trial against him with this sentence.
Friday, March 15, 2024 at 9:21 PM
Bankman-Fried was found guilty by a jury in November of seven counts of fraud and conspiracy. His sentence will be announced later this month. The maximum sentence he could receive is 110 years.
Bankman-Fried channeled funds from FTX customers to his investment fund Alameda Research, and then used them to make risky investments. When customers could not access their money, FTX went bankrupt.
Prosecutors accused Bankman-Fried of stealing $8 billion from his clients. That makes the case one of the largest financial frauds ever.
On appeal
Bankman-Fried himself argued for a much lower prison sentence at the end of last month. His lawyers told an American judge that a prison sentence of 63 to 78 months, or a maximum of 6.5 years, would be “appropriate”.
The former CEO previously admitted to making mistakes in the run-up to the bankruptcy of FTX, but denies stealing from his customers. Bankman-Fried therefore plans to appeal against his conviction and sentence as soon as the sentence is known.
