More than 500 days have passed since the FTX cryptocurrency exchange collapsed, and now users finally have the answer regarding the length of the prison sentence for the former CEO, Sam “SBF” Bankman-Fried – 25 years.
During a hearing on March 28, Judge Lewis Kaplan handed down a sentence of 300 months in prison for the ex-FTX chief’s conviction related to the misuse of customer funds. Prosecutors had initially recommended a maximum of 50 years behind bars for SBF, while his defense team had requested a more lenient sentence of up to 6.5 years. The judge noted that the former CEO had committed perjury and tampered with witnesses.
Following the announcement in a New York courtroom, the crypto community took to social media to share their opinions. Many expressed that 25 years seemed insufficient considering the longer sentences given for less severe offenses.
Edward Snowden pointed out on X that SBF received a shorter sentence than Chelsea Manning (35 years) for a significantly more serious crime, referencing Manning’s 2013 conviction under the Espionage Act.
While the sentencing guidelines allowed for a potential prison term exceeding 100 years, legal experts had predicted a range between 10 and 30 years for Bankman-Fried. Some believed this sentence could serve as a deterrent within the crypto space.
Former Assistant U.S. Attorney Mark Bini commented that Judge Kaplan’s decision took into account various factors, resulting in a significant sentence despite being less than what prosecutors had requested. This sends a clear message that those involved in crypto-related crimes will face severe consequences.
However, Swan Bitcoin Managing Director Terrence Yang disagreed, stating that justice was not fully served with a 25-year sentence, especially considering the impact of FTX’s collapse, SBF’s perjury, and the misuse of funds. He emphasized the permanent and severe damage caused by Bankman-Fried’s actions.
Bankman-Fried was taken to the Metropolitan Detention Center in Brooklyn immediately after the hearing and has been held there since his bail was revoked in August 2023. Meanwhile, Ryan Salame, the former co-CEO of FTX Digital Markets, is expected to face sentencing on May 1. Other former executives associated with FTX and Alameda Research have already pleaded guilty and reached deals.
As the case continues to unfold, it is clear that the repercussions of the FTX collapse and SBF’s actions will have a lasting impact on the crypto industry.