FTX founder Sam Bankman Fried has been sentenced to 25 years in prison for a cryptocurrency fraud that a prosecutor has described as one of the biggest financial frauds in U.S. history.
FTX founder sentenced
Sam Bankman-Fried, the co-founder of the collapsed crypto exchange FTX, has been sentenced to 25 years in prison for defrauding customers and investors of his now-defunct firm.
The once-billionaire was a prominent face of cryptocurrency until the company’s sudden collapse in 2022.
He was found guilty of embezzling billions from customers before the company’s demise.
Bankman-Fried’s legal team intends to challenge the conviction through an appeal process.
Sam Bankman-Fried what did he do?
FTX had become one of the leading crypto exchanges globally before its collapse, elevating Bankman-Fried to a notable figure in the business realm and attracting millions of users who utilised the platform for cryptocurrency transactions.
Speculations regarding financial instability triggered a surge in withdrawals in 2022, hastening the company’s downfall and uncovering Bankman-Fried’s fraudulent activities.
Last year, a New York jury convicted him on various charges, including wire fraud and conspiracy to launder money, following a trial that detailed how he misappropriated over $8 billion from customers. The funds were diverted towards purchasing real estate, political contributions, and other investments.
Sam Bankman-Fried was sentenced to 25 years in prison for a cryptocurrency fraud that unraveled with the collapse of FTX, once one of the world’s most popular digital currency exchange platforms. pic.twitter.com/EmwnT0ouPO
— The Associated Press (@AP) March 28, 2024