FTX founder Sam Bankman-Fried admitted to a judge at his criminal sentencing hearing that his actions led to the collapse of the cryptocurrency exchange, describing his decisions as “selfish.” He expressed remorse for his role in the situation, acknowledging the pain experienced by customers and the impact on his former FTX colleagues. Bankman-Fried, who served as CEO of FTX, accepted responsibility for the fraud that ultimately caused the downfall of the exchange and a related hedge fund.
Facing a potential maximum sentence of 110 years in prison under federal sentencing guidelines, Bankman-Fried received an increased guidelines range from Judge Lewis Kaplan due to perjury and obstruction of justice during his trial. The judge is not obligated to impose the full 110-year sentence, but the ruling highlights the seriousness of the offenses committed by Bankman-Fried. Kaplan also noted that the total loss from the fraud at FTX exceeded $550 million, emphasizing the impact on victims and rejecting the argument that there was no loss incurred.
At the sentencing hearing, victims of Bankman-Fried’s crimes spoke about the effects of his actions, while the defendant listened in a jailhouse jumpsuit. Federal prosecutors are seeking a sentence of 40 to 50 years in prison for Bankman-Fried, while his defense team is requesting a much shorter sentence of five to six-and-a-half years. The charges against Bankman-Fried included wire fraud, conspiracy to commit wire fraud, securities fraud, commodities fraud, and money laundering, with the jury finding him guilty on seven counts related to the disappearance of approximately $10 billion in customer deposits in 2022.
During the sentencing hearing, Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, were present in the courtroom. Despite his remorseful statements and acceptance of responsibility, Bankman-Fried faces the possibility of spending decades behind bars for his role in the FTX fraud conspiracy. The judge’s ruling on the guidelines enhancement and the acknowledgement of the losses incurred by victims underscore the severity of the situation and the potential consequences for the defendant. The sentencing decision will ultimately determine the future of Bankman-Fried as he awaits his fate in Manhattan federal court.
