Former crypto billionaire Sam Bankman-Fried has been sentenced to 25 years in prison and ordered to pay $11 billion in forfeiture for fraud and conspiracy related to his failed crypto exchange, FTX. Once worth $26.5 billion, he is now virtually penniless after his firm collapsed in 2022. Bankman-Fried is now among at least 11 billionaires who have served or will serve time behind bars, including infamous figures like El Chapo and Elizabeth Holmes. The longest sentence for a billionaire is held by Allen Stanford, who was sentenced to 110 years in prison for running a massive Ponzi scheme.
Some other billionaires who have served time include S. Curtis Johnson, who served four months for sexual assault, and Jay Y. Lee, who spent 18 months in prison for bribing South Korea’s then-President. John Kapoor, the founder of now-bankrupt Insys Therapeutics, served 3.5 years for a bribery scheme that contributed to the opioid crisis. Thomas Kwok received a 7.5-year sentence for bribery in Hong Kong, while Michael Milken served two years in prison for securities violations but is now known for his philanthropy.
Elizabeth Holmes, once worth $4.5 billion, has been sentenced to 11 years for fraud and conspiracy related to her company Theranos. Raj Rajaratnam, who founded the hedge fund Galleon Group, received an 11-year sentence for insider trading, while Mikhail Khodorkovsky and Platon Lebedev served 10 years each for tax evasion in Russia. Allen Stanford, serving a 110-year sentence for a Ponzi scheme, has not paid restitution to his victims. El Chapo, currently serving a life sentence for narcotics trafficking, has been ordered to pay $12.6 billion in forfeiture.
The cases of these billionaire convicts highlight the consequences of financial crimes and illegal activities. Despite their immense wealth and power, these individuals were not immune to the law and faced significant prison sentences for their actions. While some have been released from prison, others continue to serve lengthy terms behind bars. Their stories serve as cautionary tales about the risks of engaging in fraudulent or criminal behavior, even for those who have achieved great success in the business world. The fall from wealth and power to prison illustrates the swift and severe consequences of breaking the law.
