FTX co-founder Sam Bankman-Fried sentenced to 25 years in prison

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Sam Bankman-Fried's stunning autumn from grace

Sam Bankman-Fried's stunning autumn from grace 01:56

Former cryptocurrency billionaire Sam Bankman-Fried was sentenced Thursday to 25 years down bars for his domiciled successful perpetrating 1 of nan largest financial crimes successful U.S. history, AP News reported.

Bankman-Fried, 32, was convicted successful November of 7 counts of fraud, conspiracy and money laundering, on pinch different charges of conspiracy to perpetrate commodities and securities fraud. 

Bankman-Fried had faced up to 110 years nether national sentencing guidelines, but prosecutors had called for Judge Lewis Kaplan to condemnation Bankman-Fried to betwixt 40 and 50 years successful situation for what they described arsenic a "historic fraud." Bankman-Fried's attorneys had based on for a condemnation of nary much than six and a half years, saying he was improbable to reoffend. 

At his sentencing proceeding Thursday, attorneys for Bankman-Fried based on that their customer ne'er intended to defraud customers, and that Judge Kaplan should truthful show leniency. "Sam was not a ruthless financial serial slayer who group retired each greeting to wounded people," defense lawyer Marc Mukasey said, Reuters reported. Mukasey described his customer arsenic an "awkward mathematics nerd" who tried to return customers' money to them aft FTX collapsed, according to nan report. 

 Former FTX Chief Executive Bankman-Fried astatine nan Manhattan national tribunal successful New York City Former FTX CEO Sam Bankman-Fried walks extracurricular nan Manhattan national tribunal successful New York City, March 30, 2023. Amanda Perobelli / REUTERS

Although Bankman-Fried is expected to entreaty his conviction, erstwhile national charismatic Andrey Spektor said there's small chance that nan verdict would beryllium reversed. "There is thing anyone tin do astir that," Spektor said.

At nan hearing, Bankman-Fried offered an apology to his erstwhile FTX colleagues, Reuters reported. "They put a batch of themselves into it, and I threw that each away. It haunts maine everyday," Bankman-Fried told nan judge, adding, "I'm sorry astir that. I'm sorry astir what happened astatine each stage. Things I should person done and said, things I shouldn't have."

Bankman-Fried's condemnation past autumn followed nan startling 2022 illness of FTX, nan cryptocurrency trading level he had co-founded and led arsenic CEO, amid an $8 cardinal shortfall successful funds. At trial, he was accused of utilizing depositor money to prop up his struggling hedge fund, arsenic good arsenic of utilizing nan costs bargain luxury properties successful nan Caribbean and to make donations to a scope of causes.

FTX was erstwhile nan second-largest crypto speech successful nan world, allowing users to bargain and waste dozens of virtual currencies, while Bankman-Fried's wealthiness was estimated astatine much than $30 billion. Flush pinch billions of dollars of investors' cash, Bankman-Fried took retired a Super Bowl advertisement to beforehand FTX and bought nan naming authorities to an arena used by nan NBA's Miami Heat.

But nan illness of cryptocurrency prices successful 2022 crippled FTX and yet led to its crash. FTX's hedge money affiliate, Alameda Research, had made billions of dollars successful crypto investments that plunged successful value. Prosecutors said Bankman-Fried tried to statement up Alameda's equilibrium expanse pinch FTX customer funds.

Three erstwhile FTX associates testified against Bankman-Fried aft pleading blameworthy to related crimes. They included Caroline Ellison, Bankman-Fried's erstwhile romanticist partner, who alleged that he had pressured her to perpetrate fraud. 

—The Associated Press contributed to this report.

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  • Sam Bankman-Fried
  • FTX

Megan Cerullo

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Megan Cerullo is simply a New York-based newsman for CBS MoneyWatch covering mini business, workplace, wellness care, user spending and individual finance topics. She regularly appears connected CBS News Streaming to talk her reporting.