American entrepreneur and prominent figure in the cryptocurrency world, Sam Bankman-Fried, has received a substantial sentence of 25 years in prison following his involvement in defrauding users of the collapsed cryptocurrency exchange FTX.
The verdict was delivered by United States District Judge Lewis Kaplan in a federal courtroom situated in lower Manhattan.
Judge Kaplan sternly criticized the defence argument presented, describing it as misleading, logically flawed, and speculative.
Central to the sentencing decision were findings that Bankman-Fried had obstructed justice and tampered with witnesses during his defence proceedings.
These actions were taken into account by Judge Kaplan, who weighed them as aggravating factors.
Throughout the two-hour hearing, Bankman-Fried, clad in a beige jailhouse jumpsuit, expressed remorse and acknowledged the gravity of his actions.
He admitted to making a series of “selfish” decisions while at the helm of FTX, lamenting that he had squandered his opportunities.
Bankman-Fried confessed that the consequences of his actions weigh heavily on him every day, acknowledging numerous mistakes.
Despite expressing regret, he asserted in court that FTX possessed the means to reimburse customers impacted by its collapse.
In contrast, prosecutors painted a damning picture, alleging that Bankman-Fried had siphoned more than $10 billion from unsuspecting customers, characterizing it as one of the largest financial frauds in U.S. history.
Before its demise in 2022, FTX had been valued at a staggering $32 billion, with Bankman-Fried cultivating a public persona that attracted celebrities, politicians, and business moguls.
The severity of the charges against Bankman-Fried prompted prosecutors to push for a sentence of up to 50 years, while his defence team advocated for a maximum of six and a half years.
Bankman-Fried had previously been convicted on seven criminal counts in November and has since been detained at the Metropolitan Detention Center in Brooklyn pending sentencing.