Sam Bankman-Fried, known as the “king of cryptocurrency”, has just been sentenced to 25 years in prison by a US court for stealing billions of dollars from customers.
Bankman-Fried, 32, is the CEO and founder of the FTX exchange, which has quickly become the world's second-largest cryptocurrency exchange — a place where investors can buy and sell digital assets like Bitcoin.
The company’s sudden bankruptcy in November 2022 left millions of users without access to their accounts and unable to withdraw their funds. FTX’s secret “back doors” allowed other companies like SBF and Alameda Research to access FTX customers’ funds and make risky bets without their knowledge.
Bankman-Fried in court in July 2023. Photo: REUTER
According to court documents, “the defendant defrauded tens of thousands of people and companies, across continents, over a period of many years.” The crimes include: stealing money from trust customers, lying to investors, submitting forged documents to lenders, pumping millions of dollars in illegal donations into the political system, and bribing foreign officials.
Prosecutors also said Bankman-Fried caused more than $10 billion in losses to customers, investors and lenders. The proceeds were used to build personal influence and cover expenses, including the purchase of luxury real estate in the Caribbean and a private jet.
According to Sky News, the court initially expected a 20-year sentence but later increased it to 25 years. Prosecutors had asked for Bankman-Fried to be sentenced to 40-50 years, arguing that the public needed to be protected from the fraudster and that a harsh punishment would deter other criminals. The Bankman-Fried case has been described as one of the largest financial frauds in US history.
Known for his unkempt hair and scruffy appearance, Bankman-Fried has appeared on the covers of Forbes and Fortune and has even been hailed by the press as the new Warren Buffett.
HUY QUOC
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