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- The founder of FTX exchange and Alameda Research, Sam Bankman-Fried, has been sentenced to 25 years in prison with a three-year supervised release.
- However, some crypto enthusiasts have expressed their displeasure as they compare the outcome with that of the Silk Road founder.
The founder of FTX exchange, Sam Bankman-Fried (SBF), has officially been sentenced to 25 years in prison by U.S. District Judge Lewis A. Kaplan after being convicted of fraud and conspiracy in November 2023. According to the US Justice Department, SBF has also been subjected to a three-year supervised release and ordered to pay $11 billion in forfeiture for his involvement in multiple fraudulent schemes.
Interestingly, his sentence appears to be less than a quarter of the 105 years proposed by the court’s probation officer and about half of the 40 to 50 years recommended by Assistant U.S. Attorney Nicolas Roos. However, this is about four times the six and a half years of prison time SBF was pushing for as reported by Crypto News Flash.
SBF “Stole” More than $8 Billion from Investors and Lenders
The court document shows that SBF misappropriated billions of dollars of customers’ deposits. Specifically, he was said to have defrauded FTX investors of $1.7 billion, and Alameda Research lenders of $1.3 billion. As stated by the court, SBF stole more than $8 billion from its customers, becoming one of the largest financial frauds in history.
After multiple years of court proceedings, SBF was found guilty of two counts of wire fraud, two counts of conspiracy to commit wire fraud, one count of conspiracy to commit securities fraud, one count of conspiracy to commit commodities fraud, and one count of conspiracy to commit money laundering as formerly disclosed by CNF.
Commenting on the outcome, Attorney General Merrick B. Garland cautioned exchanges that there are serious consequences for defrauding customers and investors. According to him, anyone who is guilty of financial crimes, and strives to hide behind wealth and power should have a second thought.
FTX Founder’s Sentence Triggers Silk Road Creator’s Comparison
Agreeing with the position of Garland, U.S. Attorney Damian Williams for the Southern District of New York commented that the SBF’s sentence would prevent him from ever committing fraud again. He also stated that the outcome would be a sound of caution to others who might be tempted to engage in financial crimes. Speaking further on this, Williams explained that the scale of his crime was not just measured by the amount of money involved, but by the extraordinary harm inflicted on victims.
While most of the attorneys close to the case appear to be satisfied with the outcome, a number of crypto enthusiasts including Roger Ver who is famously known as “Bitcoin Jesus” and a proponent of Bitcoin Cash have expressed their displeasure. In a tweet, Ver reminded the world of how the founder of the infamous Silk Road marketplace, Ross Ulbricht, was handed a double life sentence of more than 40 years with no chance of parole. Having been sentenced at the age of 29, Ulbricht is now 40 years old. Ver further explained that his crime was to create a website where people could trade without the permission of the government. However, his tweet had mixed reactions with Adam Back’s Blockstream’s chief strategy officer Samson Mow objecting to his position and asking him to “stick to Bitcoin Cash.”
Interestingly, another crypto enthusiast identified as Mr. Anderson on X compared SBF’s sentence to that of the Silk Road creator.
Sam Bankman-Fried gets 25 yrs for stealing Billions of dollars & ruining countless lives while Ross Ulbricht rec’d LIFE in prison w/o the possibility of parole for creating Silk Road, where he made $13 million in #BTC commissions. Make it make sense & Never trust a fat vegan!
