Former FTX CEO Sam “SBF” Bankman-Fried has been sentenced to 25 years in prison for his multiple felony convictions. The decision has sparked mixed reactions within the cryptocurrency community and beyond.
On March 28, Judge Lewis Kaplan delivered a scathing rebuke to Bankman-Fried before announcing consecutive sentences of 240 months and 60 months, totaling 25 years behind bars. The judge likened SBF to a “thief,” dismissed his efforts to promote crypto regulation as a mere “act,” accused him of perjury, and criticized his indifference towards the survival of life on Earth.
Bankman-Fried has been in custody at the Metropolitan Detention Center in Brooklyn since August 2023, when his bail was revoked for witness intimidation. According to a court docket entry on March 28, the judge will deduct the time already served, meaning SBF could potentially spend a maximum of 291 months in prison, with his sentence ending in 2048.
Judge Kaplan has determined that Bankman-Fried will serve the remainder of his sentence in a medium- or low-security prison in the San Francisco Bay Area. Possible locations include the Federal Correctional Institution (FCI) Herlong and FCI Mendota, although it remains unclear which one will house the former FTX CEO.
Following the sentencing hearing, there were doubts expressed on social media about whether Bankman-Fried would serve the full length of his sentence. Parole is no longer available for federal charges, but inmates with “good conduct” can have 54 days deducted from their sentence for each year served. In SBF’s case, this could amount to a reduction of approximately 3.75 years, resulting in a total of 21.25 years served and a potential release in 2045. Bankman-Fried, who is currently 32 years old, could be in his mid-50s if released early for good behavior.
Bankman-Fried’s legal team has stated their intention to appeal the jury’s decision within 14 days. Meanwhile, opinions within the crypto community varied regarding the severity of the 25-year sentence. Some argued that it was too lenient considering the impact on FTX users, while others expressed surprise and believed it to be excessive.
In terms of the FTX bankruptcy case, proceedings are ongoing in the District of Delaware. Debtors have proposed a potential plan to repay users based on exchange prices at the time of the collapse. Additionally, Judge Kaplan issued an $11 billion forfeiture judgment as part of Bankman-Fried’s criminal case. This judgment ensures that any future earnings made by SBF will not go to him, but rather to the government and the victims. Bankruptcy cannot eliminate this forfeiture, meaning it is highly unlikely that Bankman-Fried will regain his previous financial status even if he achieves success after his release.
Overall, Bankman-Fried’s sentencing has made headlines and prompted discussions about the future of the cryptocurrency industry and the consequences of illegal activities within it.