The founder of the bankrupt FTX crypto exchange, Sam Bankman-Fried, has been sentenced to 25 years in prison by the court, as reported by NBC.
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At first, the TV channel and other American media said the businessman was sentenced to 20 years, but later corrected it to 25 years in prison.
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Bankman-Fried was found guilty of fraud, conspiracy to launder funds, and other cyber fraud-related offenses by a jury last November. Due to the charges, he could have faced over 100 years in prison, but his defense requested a 6.5-year sentence, citing his moral principles and poor health. Judge Lewis Kaplan, who presided over the trial, found these arguments unconvincing but did not agree with the prosecutor's demand for a 40-50 year prison term.
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The judge, while announcing the sentence, considered the defendant's obstruction of justice and attempts to influence witnesses in the case. The judge suggested placing the defendant in a medium-security prison and also ordered the collection of $11.02 billion from him, which will be used for compensating victims, as per CNN.
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The accused plans to contest the verdict; Bankman-Fried's parents have vowed to keep fighting for their son, according to the TV channel.They will keep fighting for their son.”
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In July 2023, the crypto exchange FTX sued its founder, Bankman-Fried, and three other former executives to recover over $1 billion that was allegedly embezzled in the months leading up to the company's collapse in November 2022.
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FTX filed for bankruptcy in 2022 and announced Bankman-Fried's departure from her position. Bloomberg reported that FTX incurred a loss of $662 million in a single day under mysterious circumstances.
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Some reports suggest that FTX's financial difficulties stem from the exchange providing client funds to Alameda Research, a cryptocurrency hedge fund established by Bankman-Fried.
