Former crypto king Sam Bankman-Fried set for sentencing

Date:

FTX co-founder and ex-CEO Sam Bankman-Fried will learn his fate Thursday after being convicted last fall of defrauding investors and customers of the now-bankrupt cryptocurrency exchange.

The former crypto billionaire is slated to appear before U.S. District Judge Lewis Kaplan in Manhattan federal court, where he faces a sentence of up to 110 years behind bars.

PROSECUTORS WANT A 40 TO 50 YEAR PRISON SENTENCE FOR SAM BANKMAN-FRIED

Bankman-Fried was found guilty in November on two counts of wire fraud and five conspiracy counts.

Prosecutors are seeking a sentence of 40 to 50 years in prison, while the defense is arguing a 5¼- to 6½-year prison term would be appropriate. 

Former Assistant U.S. Attorney Kevin J. O’Brien told FOX Business in an interview shortly after Bankman-Fried’s conviction that he expects the 31-year-old to receive a sentence in “the teens” or possibly lower. 

O’Brien, now a white-collar criminal defense lawyer, said he would not be surprised if the ex-CEO received a sentence comparable to 39-year-old Theranos founder Elizabeth Holmes, who is currently serving 11.25 years for her own fraud conviction.

FTX founder Sam Bankman-Fried testifies on the witness stand in federal court

The FTX founder, who capitalized on a rise in bitcoin and at one point accumulated an estimated $26 billion, is also expected to be ordered to pay restitution.

FTX AND SAM BANKMAN-FRIED’S TRIAL: THE PLAYERS

Bankman-Fried’s crypto empire fell in November 2022, when FTX collapsed after reports that the exchange had merged assets with sister hedge fund Alameda Research, leading waves of customers to withdraw funds. Bankman-Fried was indicted the next month.

Bitcoin, which accounted for much of Bankman-Fried’s net worth, fell as low as $15,000 and has since rebounded, following the approval of a bitcoin ETF by the Securities and Exchange Commission. 

Prosecutors alleged that Bankman-Fried, who founded and controlled both FTX and Alameda, misappropriated and embezzled billions of dollars in FTX customer deposits, scheming to mislead investors and instructing other executives at his businesses to do the same. A New York jury agreed.

FTX logo and cryptocurrencies

SAM BANKMAN-FRIED SAYS LAWYERS INVOLVED IN KEY DECISION BEFORE FTX COLLAPSE

Several members of Bankman-Fried’s inner circle testified against him during the trial. The prosecution’s key witnesses were Caroline Ellison — Bankman-Fried’s ex-girlfriend and the former CEO of Alameda Research — as well as FTX co-founder Gary Wang and former FTX engineering chief Nishad Singh. The trio had all previously pleaded guilty and agreed to cooperate with the government.

Bankman-Fried also took the stand in his own defense, where he admitted to making mistakes but insisted he did not defraud or steal from anyone.

Read the full article here

spot_img

Share post:

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

Popular

More like this
Related

Max Holloway levels Justin Gaethje with epic knockout blow in final seconds of UFC 300 fight

Max Holloway and Justin Gaethje went blow-for-blow in...

Caitlin Clark has jokes for Michael Che in surprise 'SNL' appearance

Iowa Hawkeyes great Caitlin Clark made a surprise...

US forces help Israel repel Iranian drone, missile attack

The U.S. military shot down dozens of missiles and...

Stopping aspirin 1 month after stent may reduce bleeding

Heart patients who undergo percutaneous coronary interventions may no...