Crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison for his role in a massive fraud case that led to the collapse of FTX, a prominent cryptocurrency platform, Associated Press reports.
Bankman-Fried was found guilty of fraud and conspiracy, but his sentence was less than half of what prosecutors sought and less than a quarter of the recommended 105 years. US District Judge Lewis A. Kaplan found his testimony inconsistent and evasive and Bankman-Fried’s apology in court was met with skepticism from the judge, who criticized his lack of genuine remorse for his actions. The collapse of FTX in November 2022, left customers, investors and lenders short over $11 billion, which the judge ordered him to forfeit.
The collapse of FTX, once a major player in the cryptocurrency market, was attributed to the downturn in cryptocurrency prices in 2022 and the mismanagement of funds by Bankman-Fried’s hedge fund affiliate, Alameda Research. Three individuals from Bankman-Fried’s inner circle pleaded guilty to related crimes and testified against him.