Sam Bankman-Fried, the entrepreneur behind the multi-billion dollar FTX crpyto exchange scandal, could spend the next quarter century behind bars.
A New York district judge decided on Thursday that the former FTX and Alameda Research founder would get a total of 291 months (so technically 24.3 years) in prison for convictions on seven criminal counts related to fraud, conspiracy, and money laundering.
The decision comes some four months after a jury found Bankman-Fried guilty on the seven counts. A 25 year sentence will no doubt be a disappointment to the defendant's camp, which had asked Judge Lewis Kaplan to give the disgraced CEO just five years in prison.
"Those who know Sam know he is selfless, altruistic and a young man who has demonstrated throughout his life a genuine concern for those less fortunate around the world," the defense claimed.
"Well before Alameda or FTX ever existed, Sam committed his life to philanthropy, pledging to earn money and give it away, with the goal of “helping the world’s poorest people."
Judge Kaplan, however, sided with the prosecution and instead settled on the lengthy term.
It should be noted that with the US prison system being what it is, many of those convicted are able to be released from incarceration early with good behavior, so there is a fair chance Bankman-Fried will not have to serve out the entire sentence. When he does get out, the former crypto kingpin will face a further three years of supervised release.
Bankman-Fried rose to infamy in 2022 when his FTX exchange went belly-up, losing billions in customer deposits in the process. It was later found that Bankman-Fried and other execs had been siphoning off customer funds to bankroll personal investments through his other company, investment fund Alameda Research.
He was subsequently arrested and charged as many of his former colleagues, including ex-girlfriend and Alameda Research CEO Caroline Ellison, agreed to testify against him in exchange for leniency.
Bankman-Fried certainly did not ingratiate himself to the court over the course of the trial, at one point having his bond revoked over allegations of witness tampering due to efforts to contact Ellison.
