Also imposed an $11 billion forfeiture on him
BBN Desk
A US court has sentenced Sam Bankman-Fried, founder of the cryptocurrency platform FTX, to 25 years in prison for massive fraud and conspiracy. His fraudulent activities led to the downfall of FTX and its related hedge fund, Alameda Research.
The Manhattan Federal Court has . Prosecutors had sought a harsher sentence of 40 to 50 years, citing Fried’s extensive financial crimes that impacted numerous individuals and entities worldwide, resulting in a loss of $10 billion.
These crimes included misappropriation of funds, investor deception, document falsification, illegal political contributions, and bribery of foreign officials. The court noted the significant risk posed by Fried, stating that there is a genuine concern about his potential for future harmful actions.
“It is not a trivial risk at all,” the court added. “To mitigate this risk to the greatest extent possible, a substantial period of disablement is necessary.”
Fried gained prominence as the co-founder and CEO of FTX, a prominent player in the cryptocurrency exchange industry. However, financial challenges arose for FTX in 2022 due to a downturn in currency values, exacerbated by losses in Alameda Research. Attempts to cover these losses using customer funds ultimately led to the collapse of FTX.
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