Bitcoin Scammer/Mega Dem Donor Sam Bankman-Fried Hit With Surprising Sentence

OPINION:  This article contains commentary which may reflect the author’s opinion

The creator of the now-defunct cryptocurrency exchange FTX, Sam Bankman-Fried, was found guilty of cheating lenders, investors, and consumers out of as much as $14 billion. The trial, which resulted in Bankman-Fried’s conviction on all counts, charged Fried and three other high-ranking officials with masterminding the plan that gave FTX’s customer deposits covert access.

These money were stolen and used for real estate purchases, loan repayments, investments, and political contributions.

The prosecution contended that Bankman-Fried intentionally deceived about the security of customer deposits, committing huge financial fraud, despite his testimony asserting his innocence and attributing the collapse to bad business decisions rather than fraud.

Regarding Mr. Bankman-Fried’s behavior, Judge Lewis A. Kaplan stated, “He knew it was wrong, he knew it was criminal.” “He knows he should have bet better on the chance of getting caught, but he won’t take responsibility for it.”

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Experts in law and individuals acquainted with the case predicted that Bankman-Fried would serve a long prison term, possibly several decades. The maximum punishment for the charges is 110 years.

This is motivated by Bankman-testimony Fried’s during the trial, which some feel could sway the judge’s verdict in a bad way. In addition, extra counts of bank fraud and bribery were taken into account while determining his sentence.

He received a 25-year sentence to serve in federal prison.

Bankman-Fried’s defense attempted to reduce his sentence by bringing up his efforts to get money back for FTX’s clients. His attorney recommended a 5-1/4 to 6-1/2 year prison sentence. The request is supported by assertions that the majority of consumers will receive their full repayment, which are corroborated by recent remarks made by the bankrupt corporation.

Known by his initials SBF, Bankman-Fried was a well-known person in the cryptocurrency world. His parents are professors at Stanford Law School, so he was raised in an academic household. He was born in Stanford, California, in 1992. Early exposure to effective altruism, a philosophy that urges people to use their resources to aid others as much as possible, had a big impact on Bankman-Fried’s professional trajectory.

In 2014, he received his degree in Physics from the Massachusetts Institute of Technology (MIT). SBF started his typical finance career as a trader at Jane Street Capital, a proprietary trading business renowned for its quantitative approach to trading the world’s financial markets, after graduating from college. He gained a strong foundation in trading and finance from his time at Jane Street, which he subsequently used to his advantage in the bitcoin market.

Bankman-Fried made his first foray into the cryptocurrency market in 2017 when he established Alameda Research, a quantitative trading company focused on cryptocurrencies. Alameda Research gained prominence in the cryptocurrency industry very fast, mostly because to its large trading volume and ability to provide liquidity on several exchanges.

Consolidating his achievements at Alameda Research, SBF established FTX, an online cryptocurrency marketplace, in 2019. FTX distinguished itself with its cutting-edge offerings, which catered to institutional and professional traders, including derivatives, options, and volatility products. FTX expanded quickly under Bankman-Fried’s direction and rose to prominence as one of the world’s top cryptocurrency exchanges.

But FTX encountered serious financial issues by the end of 2022, which ultimately resulted in its bankruptcy.

“A lot of people feel really let down, and they were very let down,” Bankman-Fried said. “I’m sorry about that. I’m sorry about what happened at every stage.” He said that his decisions will “haunt” him every day.

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