On May 23, 2018, we published revised versions of our Privacy Policy and User Agreements. Please read these updated terms and take some time to understand them. Your use of our services is subject to these revised terms.
Yes, I Agree.

Convicted Bankman Fried Sentenced to 25 Years in Jail

The cofounder of the now-collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, received a 25-year prison term for deceiving investors and customers. The verdict marks the final blow to the once-wealthy entrepreneur, who gained prominence in the crypto sphere before his company’s sudden downfall in 2022. His legal team intends to challenge the verdict.

A statement from Bankman-Fried parents, relayed by a spokesperson to the BBC, expressed their devastation and commitment to fighting for their son’s cause. During his court appearance, the 32-year-old acknowledged the disappointment felt by many, expressing remorse for the events that unfolded.

FTX had risen to become one of the leading exchanges globally, propelling Bankman-Fried into the spotlight and attracting millions of clients and investors. However, rumors of financial instability triggered a panic among depositors, leading to the company’s demise and revealing Bankman-Fried’s fraudulent activities.

Following a trial that outlined his misdeeds, including siphoning more than $8 billion from clients for personal use, Bankman-Fried was convicted last year of wire fraud and money laundering conspiracy by a New York jury. Before delivering the verdict, Judge Lewis Kaplan criticized Bankman-Fried’s deceitful conduct, highlighting his lack of remorse and dishonesty during the trial.

Despite facing a substantial prison term, Bankman-Fried received a comparatively lighter sentence than what was recommended by prosecutors. They had sought at least 40 years, citing his audacious disregard for the law. His defense team, on the other hand, argued for a milder sentence, emphasizing his nonviolent background, mental-health issues and the potential for customer reimbursement through bankruptcy proceedings.

Judge Kaplan ordered the former crypto king to forfeit $11 billion for victim compensation, with some assets already seized by the government.

Bankman-Fried admitted to managerial errors but maintained that his intentions were sincere, asserting that FTX had adequate assets to repay clients before its collapse. Numerous individuals, including former FTX customers and acquaintances, submitted letters to the court expressing varied sentiments regarding the case.

Despite the severity of the sentence, some, including Samuel Hapak, CEO of Wincent, a cryptocurrency trading fund, viewed it as appropriate, signaling a need for accountability in the industry. Others viewed the ruling as inadequate restitution for their losses.

Kaplan opted not to recommend maximum-security prison for Bankman-Fried, considering concerns raised by his legal team and parents regarding his vulnerability due to autism spectrum disorder. He underscored the necessity of a punishment that deters future wrongdoing while ensuring Bankman-Fried’s safety during incarceration.

The sentencing of Bankman-Fried brings to an end a dark chapter in the history of crypto, and companies such as  Canaan Inc. (NASDAQ: CAN) can now move on with their plans to deepen their reach in different markets.

About CryptoCurrencyWire

CryptoCurrencyWire (“CCW”) is a specialized communications platform with a focus on blockchain and the cryptocurrency sector. It is one of 60+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CCW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CCW brings its clients unparalleled recognition and brand awareness. CCW is where breaking news, insightful content and actionable information converge.

To receive SMS alerts from CryptoCurrencyWire, text “CRYPTO” to 888-902-4192 (U.S. Mobile Phones Only)

For more information, please visit https://www.CryptoCurrencyWire.com

Please see full terms of use and disclaimers on the CryptoCurrencyWire website applicable to all content provided by CCW, wherever published or re-published: https://www.CryptoCurrencyWire.com/Disclaimer

New York, NY
212.994.9818 Office

CryptoCurrencyWire is powered by IBN


Select A Month

Official NewsWire Relationships

Anarchapulco Main Event Blockchain Africa Conference Blockchain Futurist Conference Blockchain Life Conference Blockchain Shift Coingenius Coinvention CryptoBlockCon CryptoFest European Blockchain Convention EVOLV - evolve.events Finovate nftexpoverse Paris Blockchain Week The North American Bitcoin Conference Virtual Blockchain Week The Voice of Blockchain World Crypto Conference

CryptoCurrencyWire Currently Accepts



Bitcoin Cash

Bitcoin Cash

Doge Coin






USD Coin

USD Coin

Contact us: 212.994.9818