Sam Bankman Fried, crypto king sentenced to 25 years in prison

Stole more than eight billion dollars from the clients of his now bankrupt firm

7947 views 54 reactions 4 comment(s)
Photo: Amanda Perobelli/Reuters
Photo: Amanda Perobelli/Reuters
Disclaimer: The translations are mostly done through AI translator and might not be 100% accurate.

Samuel Bankman Fried (SBF), founder of the American crypto exchange FTX, was sentenced to 25 years in prison for stealing more than eight billion dollars from the clients of his now-bankrupt firm.

After a two-hour hearing, Judge Louis Kaplan said that Bankman Fried knew he was engaged in illegal activities and that he "didn't show any remorse for the terrible crimes he committed."

"I made a lot of mistakes, I let down everyone I cared about," the accused said in the courtroom.

Prosecutors claim he took more than ten billion dollars from a client in what they said was "the largest financial fraud in American history."

"The extent of his crimes is measured not only by the amount of money stolen, but also by the extraordinary harm caused to the victims, some having their life savings wiped out overnight," Damian Williams, US Attorney for the Southern District of New York, said at the trial.

The indictment against Samuel Bankman Fried was filed in November 2022.

He is charged with eight criminal offences.

According to the prosecution, he lied to investors and banks, stole more than eight billion dollars from clients and used their deposits to pay debts and expenses of his own venture capital fund. Alamida Research.

The crypto king, as he was also called, denied guilt, claiming that although he made mistakes, his intentions were good.

FTX was the second largest crypto exchange in the world, where 10 billion dollars were traded on a daily basis.

The company went bankrupt in November 2022.

Its value was previously estimated at 32 billion dollars.

'just punishment'

Among the people who invested in Samuel Bankman Freed's company were public figures, politicians and businessmen.

Samuel Hapak's firm represents 200 investors who lost $35 million since FTX went bankrupt.

Software development company CEO Vincent told the BBC that "a 25-year prison sentence is fair".

"It's been many years and I believe this is a good signal for the industry to tighten up the game," he said.

As he said, his clients "were upset and angry" when the crypto exchange FTX failed.

"They thought we were completely incompetent when we could believe such an impostor and we couldn't have predicted that this would happen," he added.

In the end, Vincent lost half of his capital, about 70 million dollars, and 25 percent of the investors.

AMR ALFIKY/Reuters

Who is Samuel Bankman Frid?

Joe Tyde

BBC cyber reporter

Sam Bankman Fried was a rare phenomenon in the business world.

A messy social media influencer, loved by cryptocurrency enthusiasts and a top business man who was entrusted with millions of dollars by investors.

He often presented himself as a modest, mathematical genius, uninterested in personal wealth.

A billionaire who drove the family's broken-down car and slept on a sleeping bag in the office.

Investors did not pay attention to his life and lifestyle.

His company was doing well and that was all they cared about - it smelled like money.

FTH was the second largest crypto exchange in the world, where $10,15 billion was traded daily.

When the company collapsed, everyone was in disbelief: from business leaders to small investors.

Founder of crypto exchange FTX he was one of the largest donors to the Democratic Party, but, according to his own claims, he also gave money to Republicans.

Before the collapse of the company, the fortune of SBF was estimated at 26 billion dollars.


See what bitcoin is, the most famous cryptocurrency


Follow us on Facebook, Twitter i Viber. If you have a topic proposal for us, contact us at bbcnasrpskom@bbc.co.uk

Bonus video: