Judge Orders Disgraced Crypto Tycoon to Confiscate $11 Billion in Assets, Says He Has Shown No remorse for His Crimes
Sam Bankman-Fried, the disgraced crypto tycoon who perpetrated one of the biggest money frauds in history, has been sentenced to 25 years in jail and ordered to seize $11 billion in assets. His lawyer reiterated his commitment to appeal the sentence on the same day.
Judge Lewis Kaplan handed down the sentence Thursday in a Manhattan courtroom. Bankman-Fried, the former chief executive of the now-bankrupt cryptocurrency exchange FTX, convicted of fraud and conspiracy to launder expired cash last year.
Bankman-Fried gave that impression in the courtroom around 9:40 a. m. M. , taking a seat in khaki criminal clothes and his hair pulled back with the messy taste for which he is known as a crypto billionaire. He barely reacts when Kaplan reads his sentence.
At sentencing, Kaplan described Bankman-Fried as a mathematical calculating genius who sought strength and influence while knowingly committing wrongdoing. Although Bankman-Fried apologized for FTX’s downfall, saying he had “made a number of bad decisions,” Kaplan said there was “never a word of regret” for his crimes.
“I knew it wrong, I knew it criminal,” Kaplan said.
The hearing began with Kaplan rejecting several defense arguments related to sentencing guidelines and claiming that Bankman-Fried had continually committed perjury in his testimony at trial. Kaplan likened the defense’s claim that consumers can receive a refund to a scenario in which a thief makes off with their loot. to Las Vegas and then asks for leniency if he can come back with the winnings.
Before Kaplan made his decision, Bankman-Fried, his attorney and the U. S. attorney testified.
Bankman-Fried came up with something of a meandering apology, attributing the crisis at FTX to mismanagement and saying he “regrets what happened. “He praised his former workers and executives, adding co-founder Gary Wang and his former friend Caroline Ellison, who neither testified against him at trial. Bankman-Fried said he was looking to be able to help recover customer funds, but claimed he was no longer in a position of power.
“My lifespan is over,” Bankman-Fried said.
Marc Mukasey, Bankman-Fried’s lawyer, has attempted to portray the former crypto mogul as a susceptible and kind-hearted user who made mistakes. He described Bankman-Fried as “a bumbling math nerd” who enjoyed animals, video games, and “life. “to give to others. ” Mukasey also cited Bankman-Fried’s social awkwardness and depression as reasons why he is misunderstood, comparing him to “a puzzle. “
“Sam Bankman-Fried doesn’t make decisions with malice in his heart. Make decisions with math in mind,” Mukasey said.
None of those calls seemed to have any influence on Kaplan, who said that while he took into account the fact that Bankman-Fried was autistic and socially awkward, he had committed a very serious crime. Kaplan described Bankman-Fried as coming from an “exceptionally privileged background,” referring to his parents, law professors, who watched in the courtroom and used their intellect to calculate the likelihood that he could get away with it.
Kaplan cited Bankman-Fried’s testimony at his felon trial as evidence that the former billionaire had no intention of taking responsibility for his crimes, saying he was “evasive” and “mind-boggling” in lying about his conduct.
“I’ve never noticed functionality like this,” Kaplan said, adding that he sees a threat that Bankman-Fried could commit more irregularities in the long run if he is able to do so.
Prosecutors had asked for a sentence of 40 to 50 years in prison, arguing that Bankman-Fried, 32, had shown a lack of remorse for his crimes while leading a life of “unprecedented greed and pride. “Damian Williams said Bankman-Fried’s conviction sent “a vital message” and “will prevent the defendant from committing fraud again. “
In pre-sentencing arguments filed last month, Bankman-Fried’s lawyer suggested sentencing to show leniency and said the potential 100-year maximum sentence for his consumer was “grotesque. “Bankman-Fried’s lawyers were seeking a sentence of about seven years. in prison.
Kaplan that Bankman-Fried be sent to a medium- or low-security criminal in the Bay Area to allow family visits.
Just two years ago, Bankman-Fried was on the verge of becoming one of the most financially and politically influential people in the United States. His corporate FTX was valued at $32 billion and had the public face of the crypto industry popping up. at times on par with celebrities and former world leaders and testifying before the U. S. Congress. U. S. He was a major political donor, pouring cash into election campaigns while lobbying lawmakers on crypto regulation.
The decline of the golden crypto boy’s prestige to a global pariah came quickly. After reports were published in November 2022 revealing the currency instability of Bankman-Fried’s companies, a domino effect ensued on those companies, adding that consumers were running a bank-style deposit run and investigators froze FTX’s assets. FTX filed for bankruptcy just nine days after the initial report from crypto news site Coindesk, with Bankman-Fried’s private net worth plummeting by billions of dollars.
He was arrested weeks later in the Bahamas, where he and other FTX executives lived and where parts of their company were based.
Bankman-Fried’s highly anticipated trial began in October, with prosecutors alleging that he embezzled consumers’ budgets while enriching himself and buying lavish real estate. Once known for his unkempt hair and dressed in casual clothes on any occasion, Bankman-Fried made the impression with a new haircut and suit at the trial. In an unusual and ultimately disastrous action, he spoke in his own defense, leading to a damaging interrogation in which he did not remember the occasions and gave the impression of contradicting himself.
Many of Bankman-Fried’s closest executives and allies, including his casual friend Caroline Ellison, testified against him at trial. Ellison, the former executive leader of FTX’s advertising arm, Alameda Research, told the court that Bankman-Fried ordered him to devote his knowledge to fraud and use the budget of FTX’s customers.
The jury in Bankman-Fried’s trial found him guilty of all seven counts of fraud and conspiracy after four hours of deliberation. Bankman-Fried has maintained his innocence.
Sam Bankman-Fried and former Google employee Gary Wang discovered crypto exchange FTX. Bankman-Fried is in his mid-twenties and has just left the trading firm Jane Street Capital.
Changpeng Zhao, then CEO of Binance, invested $100 million in FTX for 20% of the company.
Bankman-Fried moved the company’s headquarters from Hong Kong to the Bahamas in 2021, bought millions of homes and moved to the country.
Bankman-Fried and FTX reach an agreement on the company’s first major partnership, a sponsorship deal with Mercedes’ Formula 1 racing team. Meanwhile, FTX raises many millions in an investment circular and is valued at $25 billion.
Bankman-Fried raises $400 million in a Series C investment round as the company’s valuation reaches $32 billion.
Bankman-Fried invests millions of dollars in a Super Bowl ad starring Larry David, while FTX makes an offer to the general public.
FTX is an event called Crypto Bahamas, featuring celebrities such as Gisele Bündchen and Tom Brady. Bankman-Fried appears to be on the same level as former world leaders Bill Clinton and Tony Blair.
Bankman-Fried invested about $40 million in political campaigns, becoming an emerging force in Washington.
Crypto news site CoinDesk publishes an article claiming that FTX’s finances would possibly be more fragile than previously thought, leading to strong media policy and investor concern. A visitor who runs out of deposits causes a crisis in the stock market.
Bankman-Fried resigns after a week of chaos and lack of funds.
Authorities arrest Bankman-Fried in the Bahamas and extradite him to the United States, charged with conspiracy and fraud.
Bankman-Fried’s bail is revoked after the diary of his former FTX executive, Caroline Ellison, was leaked to the New York Times. He was sent to jail awaiting trial.
The criminal trial begins in Manhattan federal court, with former FTX allies and executives coming forward to oppose Bankman-Fried.
A jury finds Bankman-Fried guilty of all seven counts of conspiracy and wire fraud. He faces decades in prison.
In Manhattan federal court, Sam Bankman-Fried was sentenced to 25 years in prison on criminal charges and the forfeiture of $11 billion in assets.