United States: Sam Bankman-Fried, fallen cryptocurrency superstar, sentenced to 25 years in prison

Sam Bankman-Fried, co-founder and boss of cryptocurrency platform FTX, was sentenced to 25 years in prison on Thursday for one of the worst financial frauds in recent history. He was found guilty by a jury in November of the seven charges brought against him at a trial. At the end of it, New York prosecutor Damian Williams demanded between forty and fifty years in prison.

Federal Judge Lewis Kaplan minced no words during a hearing Thursday morning in New York, noting that the young man had admitted that “Mistakes had been made, but there was never a word of regret for committing a terrible crime“.Call Him”insolent“the magistrate denounced his”exceptional flexibility» about the truth.

According to him, with supporting examples, the man nicknamed “SBF” committed perjury at least three times during his testimony during the five-week trial, as well as witness tampering. This increased the maximum possible sentence to 110 years.

For his part, the thirty-year-old – who plans to appeal – apologized. “Many people feel like they have been abandoned, and we have failed them. I’m sorry.said Sam Bankman-Fried. “I’m sorry for what happened on every level.“.

A fine of $11 billion

In addition to the 25 years in prison, ‘SBF’ is subject to an $11 billion sanction – which could be used to offset potential customer losses – and will be on probation for three years after his release, the judge said. Department. Damian Williams opined that this sentence was a “important message» to those tempted by white-collar crime who “Justice will be swift and the consequences severe“.

Sam Bankman-Fried used the assets of customers of his digital currency exchange platform FTX without their consent to make risky transactions through his sister company Alameda, to buy real estate or to make political donations. Driven by massive withdrawal requests from panicked customers, FTX imploded in November 2022. At the time of the bankruptcy filing, it was missing approximately $9 billion.

Compensate injured customers

During the trial, ‘SBF’s’ defense was weakened by the testimony of three former FTX and Alameda executives, including his ex-girlfriend, all of whom had highlighted in detail the suspect’s driving role in the fraud.

The group’s administrators have already recovered about $6.4 billion in cash and plan to fully reimburse injured customers. They particularly benefit from the brutal appreciation of cryptocurrencies, which have recovered after a catastrophic period in 2022, marked by several bankruptcies and interrupted by the FTX scandal.