FTX, one of the world’s largest cryptocurrency exchanges, collapsed in late 2022, causing users to lose billions of dollars. Founder of FTX and known at the time as the ‘golden boy’ of crypto Sam Bankman-Fried He was also arrested and held responsible for what happened. The trial against Fried, who had been in prison for some time, was still ongoing.
Today this case was officially concluded and the verdict of the famous entrepreneur was announced. Fried, 7 separate fraud and money laundering crimes He was sentenced to prison.
Sam Bankman-Fried, who had sought 110 years in prison, was sentenced to 25 years in prison
Fried was heard by Judge Lewis Kaplan during the four-hour hearing held today in New York. He was sentenced to 25 years in prison. Although the 32-year-old entrepreneur denied all allegations, a jury of twelve people found him guilty of defrauding his users and stealing their money.
Sam Bankman-Fried was normally sentenced to a maximum of 110 years in prison. Prosecutors had asked for a prison sentence of 40 to 50 years. On the other hand, Fried’s lawyers had demanded a sentence of 5 to 6 years. Ultimately, a decision of 240+60 months in prison was made.
Investors lost $8 billion
Bankman founded FTX in 2019. The fair quickly achieved worldwide success and became one of the largest in the sector. However, it started to collapse in November 2022 due to liquidity issues and mismanagement of funds, among other things. Shortly afterwards he went bankrupt. During the trial, witnesses testified that FTX changed the numbers to make itself appear more secure. It was also revealed that Fried granted secret privileges to his own company, Alameda Research, and that this company, thought to be independent, was largely tied to the exchange’s own token, FTT.
All these events caused investors to suffer. Users, While he lost $8 billion the company’s investors $1.7 billion lost. As a result, Fried was found guilty of fraud and money laundering.
Follow Webtekno on Threads and don’t miss the news
Source: Web Tekno
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.
