Samuel Bankman-Fried, founder of FTX, was sentenced to 25 years in prison.

***FTX Founder Samuel Bankman-Fried Sentenced to 25 Years in Prison for Massive Fraud***

By Brett Rowland (The Center Square)

A federal judge sentenced Samuel Bankman-Fried, also known as SBF, the founder of FTX and Alameda Research, to 25 years in prison on Thursday for orchestrating a massive fraud. The judge, Lewis Kaplan, also ordered Bankman-Fried to pay $11 billion and serve three years of supervised release.

Bankman-Fried was found guilty of misappropriating billions of dollars of customer funds deposited with FTX. Prosecutors revealed that he fraudulently obtained over $1.7 billion from FTX investors and more than $1.3 billion from lenders to Alameda Research.

Attorney General Merrick Garland stated, “There are serious consequences for defrauding customers and investors. Anyone who believes they can hide their financial crimes behind wealth and power should think twice.”

At 32 years old, Bankman-Fried was convicted of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering after a one-month trial.

Before his downfall, Bankman-Fried was a prominent figure in the cryptocurrency industry, leading FTX to unprecedented popularity before its crash in 2022. He was known for his contributions to political campaigns, donating approximately $40 million during the 2022 election cycle. However, after the scandal, many recipients rushed to return the donations.

Bankman-Fried now joins a list of infamous fraudsters with long prison sentences, such as Bernard Ebbers, Jeffrey Skilling, and Bernie Madoff. Ebbers received a 25-year sentence but was released after 13 years due to health issues, and Skilling’s original 24-year sentence was reduced to 14 years. Madoff, the architect of the largest Ponzi scheme, was sentenced to 150 years and died in 2021 after serving nine years.

Bankman-Fried’s fraudulent activities spanned from 2019 to 2022, during which he misused FTX customer funds for personal investments, political contributions, and loan repayments for Alameda Research. He provided false financial information to lenders and equity investors to cover up his misconduct.

This sentencing marks a significant milestone in the fight against financial crimes, emphasizing that no one is above the law, regardless of their wealth or influence.

*This article was syndicated with permission from The Center Square.*