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Former FTX CEO Sam Bankman-Fried sentenced to 25 years in prison on fraud charges

Former FTX CEO Sam Bankman-Fried sentenced to 25 years in prison on fraud charges

Former FTX CEO Sam Bankman-Fried sentenced to 25 years in prison on fraud charges

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Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York on January 3^ 2022 after pleading not guilty
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York on January 3^ 2022 after pleading not guilty

Former FTX CEO Sam Bankman-Fried, 32, was sentenced to 25 years in prison on Thursday after he was found guilty on fraud charges related to the downfall of the failed cryptocurrency exchange.

Judge Lewis Kaplan delivered the sentence, calling the defense argument ‘misleading, logically flawed and speculative.’ Kaplan said that Bankman-Fried had obstructed justice and tampered with witnesses in mounting his defense, which he weighed in making his decision on sentencing.

Bankman-Fried  was accused of using customer deposits on the cryptocurrency trading platform FTX, the company he founded, to cover losses at his hedge fund, pay off loans and buy lavish real estate, among other personal expenses.  He was convicted last November on two wire fraud conspiracy counts, two counts of wire fraud, one money-laundering conspiracy count, plus two counts of commodities fraud conspiracy and conspiracy to commit securities fraud. The wire fraud and money laundering charges each carried a maximum sentence of 20 years in prison, while the other charges carry a maximum sentence of five years each.

Via NBC News, Damian Williams, United States Attorney for the Southern District of New York, said in a statement that Bankman-Fried had orchestrated one of the largest frauds in financial history: “Today’s sentence will prevent the defendant from ever again committing fraud and is an important message to others who might be tempted to engage in financial crimes that justice will be swift, and the consequences will be severe.”

Editorial credit: lev radin / Shutterstock.com

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