FTX co-founder Sam Bankman-Fried sentenced to 25 years in prison for fraud and theft

The co-founder of the cryptocurrency platform FTX, Sam Bankman-Fried, has been sentenced to 25 years in prison in the United States for defrauding and stealing billions of dollars from customers.

The sentence handed down by US District Judge Lewis A. Kaplan found Bankman-Fried guilty of seven felonies, including fraud and conspiracy.

Bankman-Fried, 32, expressed regret over the collapse of FTX, which revealed about $10 billion in fraud, but the judge threw out her plea, stressing the seriousness of the crime.

During the trial, prosecutors accused Bankman-Fried of siphoning billions of dollars from FTX to its sister hedge fund, Alameda Research, for speculative investments, political donations and expensive real estate.

Trouble began when lenders began calling for their money in 2022, and Bankman-Fried used FTX’s customer funds to pay it back, but a flurry of customer withdrawals led to FTX’s bankruptcy and the resignation of Bankman-Fried as CEO.