FTX crypto exchange founder Benkman-Fried sentenced to 25 years for fraud worth billions of dollars
He stated that he disagreed with the court's decision and would appeal it
A US court has sentenced former billionaire Sam Bankman-Fried to 25 years in prison for stealing $8bn from clients of the FTX cryptocurrency exchange he founded, which is now bankrupt.
Source. This was reported by Reuters.
The district judge rejected Benkman-Fried's claim that FTX customers did not actually lose money, finding that he had lied during his testimony in court. On 2 November, a jury found 32-year-old Benkman-Fried guilty of seven counts of fraud and conspiracy related to the 2022 FTX collapse, which prosecutors called one of the largest financial frauds in US history.
The judge also added that Bankman-Fried showed no remorse.
"He knew it was wrong," Kaplan said before the sentencing. – "He knew it was a crime. He regrets that he made a very bad bet on the likelihood of being caught. But he's not going to admit anything, and that's his right."
Benkman-Fried acknowledged during his 20-minute court appearance that FTX customers had been affected and apologised to his former exchange colleagues, but did not admit to a criminal offence.
He promised to appeal his sentence.
The judge stated that FTX clients lost $8bn, FTX investors lost $1.7bn, and creditors of the Alameda Research hedge fund founded by Bankman-Fried lost $1.3bn.
Background. As reported, the bankrupt crypto exchange FTX has returned assets worth $7.3 billion. It is noted that the company plans to relaunch its crypto exchange.
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