Crypto-Fraudster Sam Bankman-Fried Sentenced to 25 Years in Prison

In early November, disgraced crypto-billionaire Sam Bankman-Fried was found guilty by a New York jury of defrauding FTX customers and investors of at least $10 billion.

On Thursday, Bankman-Fried learned his sentencing fate: Judge Lewis Kaplan (the same judge who presided over both of E. Jean Carroll's defamation suits against former President Donald Trump) sentenced Bankman-Fried to 25 years in prison.

Bankman-Fried, 32, was convicted in November of fraud and conspiracy — a dramatic fall from a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.
U.S. District Judge Lewis A. Kaplan imposed the sentence in the same Manhattan courtroom where, four months ago, Bankman-Fried testified that his intention had been to revolutionize the emerging cryptocurrency market with his innovative and altruistic ideas, not to steal.
Kaplan said the sentence reflected “that there is a risk that this man will be in position to do something very bad in the future. And it’s not a trivial risk at all.” He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time.”

As Bonchie noted at the time of Bankman-Fried's conviction:

Bankman-Fried was ultimately taken down by those closest to him, including his once-girlfriend, who held a high executive position at the company. Together, they siphoned off billions of dollars from investors, living the high life in a multi-million-dollar mansion in the Bahamas. Also of interest in the case was the fact that Bankman-Fried was an extensive political donor, with most of his money going to the Democratic Party.

Since August, Bankman-Fried has been held at Brooklyn's Metropolitan Detention Center. A photo from December 2023 showed a disheveled Bankman-Fried alongside several other inmates.

*Almost* feel sorry for the guy. https://t.co/RpvbdBVBa5
— Ben Kew (@ben_kew) February 20, 2024

Ahead of the sentencing, Bankman-Fried's parents expressed fear for his safety and well-being in prison in a plea to the court.

Sam Bankman-Fried's Parents Say They Fear for His Life in Prison

Whether that factored into Kaplan's sentencing decision is unclear. Prosecutors had recommended a sentence of 40-50 years — and one probation officer had recommended 100 years.

Two weeks ago, Mukasey attacked a probation office recommendation of 100 years in prison, saying a sentence of that length would be “grotesque” and “barbaric.”
He urged the judge to sentence Bankman-Fried to a term of five to 6 1/2 years in prison, which Mukasey said was a fair reading of federal sentencing guidelines.

Ultimately, 25 years is nothing to sneeze at. Bankman-Fried will serve that time in a federal prison. Although the specific facility is not known, Judge Kaplan's order recommends "a medium security facility in view of the Court's perception that defendant's notoriety, his association with vast wealth, his autism and social awkwardness are likely to make him more than usually vulnerable in the environment of a high security facility." Further, Kaplan recommended the facility "be as close to the San Francisco - Bay Area as possible," presumably to be nearer to his family.