Sam Bankman-Fried, the CEO and co-founder of the now-defunct cryptocurrency exchange FTX, received a substantial 25-year prison sentence in the United States after being convicted on seven counts of conspiracy and fraud. Judge Lewis Kaplan delivered the verdict, imposing a 240-month and a 60-month sentence to be served consecutively.
The judge found Bankman-Fried's communication with the former general counsel to be an attempt at witness tampering, leading to obstruction of justice charges. Additionally, the judge made three perjury findings based on trial testimony. Notably, Bankman-Fried provided false testimony regarding his knowledge of the missing $8 billion that resulted in losses for FTX customers.
Bankman-Fried has been in custody at the Metropolitan Detention Center since August 11, 2023. Last November, he was found guilty on all counts related to fraud and money laundering, marking a significant legal setback for the once-prominent FTX CEO.
The US Attorney’s office for the Southern District of New York characterized the case as one of the largest financial frauds in American history, alleging that Bankman-Fried orchestrated a multibillion-dollar scheme to establish himself as the 'King of Crypto'.
US Attorney Damian Williams condemned the actions, emphasizing that despite the cryptocurrency industry's novelty, the nature of corruption involved is timeless. He reiterated that the case revolves around deceit, dishonesty, and theft, and such behavior will not be tolerated.
FTX, formerly the world's second-largest cryptocurrency exchange, filed for bankruptcy in November 2022 amidst the legal turmoil surrounding Bankman-Fried and the company's operations.
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