Sam “SBF” Bankman-Fried, the former CEO of FTX, has been sentenced to 25 years in prison by Judge Lewis Kaplan in the United States District Court for the Southern District of New York. This follows his conviction on seven felony charges related to the collapse of the exchange in November 2022. Bankman-Fried’s sentencing included 240 months and 60 months, totaling 25 years. He is the first person connected to FTX and Alameda Research to receive prison time.
Judge Kaplan found Bankman-Fried guilty of witness tampering for revoking bail in August 2023 and perjury for his testimony during the trial regarding FTX user funds. While acknowledging Bankman-Fried’s “social awkwardness,” Judge Kaplan stated that based on former Alameda Research CEO Caroline Ellison’s testimony, Bankman-Fried knew he was at fault but refused to admit it. The judge emphasized the seriousness of the crime and criticized Bankman-Fried’s behavior during the trial, calling it evasive and manipulative.
In addition to the prison sentence, Judge Kaplan suggested an $11 billion judgment. He stated that FTX investors lost $1.7 billion, lenders lost $1.3 billion, and customers lost $8 billion.
According to Inner City Press reporter Matthew Lee, the New York courtroom was filled with members of the public and officials before Bankman-Fried was brought out by U.S. Marshals. He was reportedly wearing the light brown uniform of the Metropolitan Detention Center in Brooklyn, where he has been held since his bail was revoked.
Judge Kaplan rejected the defense’s argument regarding loss, stating that the assertion that customers and creditors would be fully paid was misleading. He emphasized that loss should not be equated with dollar volume in the bankruptcy case.
Before the sentence was announced, Bankman-Fried expressed regret for the events and claimed that FTX would have survived if it had not been shut down. His attorneys portrayed him as a misunderstood genius. Sunil Kavuri, a victim of FTX, testified on behalf of others affected by the collapse, challenging the narrative that there was no loss based on the exchange’s plans for repayment.
Assistant U.S. Attorney Nicolas Roos stated that Bankman-Fried had not accepted responsibility for his actions and argued that if he believed mathematics justified it, he would do it again.
Judge Kaplan’s sentence fell between the recommendations of SBF’s attorneys and prosecutors, who had argued for 6.5 and 50 years, respectively. Experts had predicted a sentence of 10 to 30 years based on the facts of the case and the amount of funds involved.
Four other individuals associated with FTX and Alameda, including Gary Wang, Caroline Ellison, Nishad Singh, and Ryan Salame, have pleaded guilty and made deals in the same case as Bankman-Fried. Salame, the former co-CEO of FTX Digital Markets, is the only one who did not testify at Bankman-Fried’s trial and is expected to be sentenced on May 1.
In related news, Inner City Press reports that Alex Mashinsky, who is considered “less flashy” than Bankman-Fried, is expected to receive a lesser jail sentence.