Samuel Bankman-Fried, the founder of the cryptocurrency exchange FTX, has been sentenced to 25 years in prison for orchestrating multiple fraudulent schemes. The sentencing, which also includes three years of supervised release and a forfeiture of $11 billion, follows Bankman-Fried's conviction on various counts including wire fraud, securities fraud, and money laundering.
Attorney General Merrick B. Garland emphasized the consequences of financial crimes, stating, "Anyone who believes they can hide their financial crimes behind wealth and power...should think twice." Garland commended the U.S. Attorney's Office for the Southern District of New York and the FBI for their work in bringing Bankman-Fried to justice.
FBI Director Christopher Wray echoed similar sentiments, highlighting the agency's commitment to investigating fraudulent schemes. Wray stated, "Today's sentencing should serve as a warning to others looking to use fraudulent means for personal gain – there are consequences for your actions."
U.S. Attorney Damian Williams for the Southern District of New York condemned Bankman-Fried's actions, calling his fraud one of the largest in history. Williams noted the significant harm caused to victims, including the loss of life savings. Williams emphasized the severity of Bankman-Fried's crimes, stating that the sentencing sends a clear message that justice will be swift and consequences severe for those engaging in financial crimes.
According to the indictment and trial evidence, Bankman-Fried misappropriated billions of dollars of customer funds deposited with FTX, defrauded investors, and provided false financial information to lenders. He used fraudulent means, including altering computer code and creating false financial statements, to perpetrate the fraud.
Judge Lewis A. Kaplan authorized the use of recovered funds through forfeiture to compensate victims of Bankman-Fried's crimes. The FBI led the investigation into the case, with the Southern District of New York's Securities and Commodities Fraud Task Force handling the prosecution.
Bankman-Fried's sentencing marks a significant milestone in holding individuals accountable for financial fraud and sends a strong message against fraudulent activities in the financial sector.