Sam Bankman-Fried, a former crypto entrepreneur, is set to be sentenced on Thursday, March 28. He is facing decades behind bars for his part in the downfall of FTX in 2022, which was a prominent platform for trading digital currency globally.
Bankman-Fried's fortunes took a nosedive when he was convicted of fraud and conspiracy in November 2023. The court determined that he had fraudulently used the funds of FTX investors to pay for his personal needs, such as private jets, Caribbean mansions, and bribes to Chinese government officials.
Disgraced 'Crypto King' Faces Decades in Prison After Scandal
In a court filing, prosecutors said that Bankman-Fried preyed upon tens of thousands of individuals and businesses over many years and countries, as reported by The Independent.
"He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence."
A jail term of 40 to 50 years was suggested by the prosecution.
Family, friends, and lawyers for Bankman-Fried have all asked for compassion, claiming he would not commit another crime. Additionally, they assert that the investors in FTX have essentially recouped their investment. However, this claim was disputed by the bankruptcy attorneys, FTX, and its creditors.
Weeks earlier, Bankman-Fried attorney Marc Mukasey criticized a 100-year jail term proposed by the probation office, calling it "grotesque" and "barbaric." He argued that Bankman-Fried deserved a jail sentence of five to six and a half years.
Bankman-Fried is a first-time offender who did not commit any violent crimes, according to Mukasey. He noted that Bankman-Fried was neither the "evil genius" portrayed in the media nor the greedy villain portrayed throughout the trial.
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How Did FTX Demise Become the Biggest US Financial Fraud?
While serving as CEO and co-founder of FTX, the world's second-largest cryptocurrency exchange, Bankman-Fried amassed a paper fortune in the billions of dollars. From Bitcoin to lesser-known cryptocurrencies like Shiba Inu Coin, FTX gave investors access to hundreds of virtual currencies.
With the help of his partners, Bankman-Fried spent billions of dollars advertising his firm in a Super Bowl commercial and purchased the naming rights to a Miami arena.
However, the 2022 cryptocurrency market crash doomed FTX. Alameda Research, FTX's hedge fund subsidiary, has invested billions of dollars in a variety of cryptocurrencies that saw massive losses in 2022. Bankman-Fried attempted to use monies from FTX customers to close the gaps in Alameda's balance sheet.
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