In a federal court hearing on March 28, former FTX CEO Sam “SBF” Bankman-Fried was sentenced to 25 years in prison after being convicted on seven felony charges. The sentencing, delivered by Judge Lewis Kaplan of the United States District Court for the Southern District of New York, marked the first instance of someone associated with FTX and Alameda Research facing imprisonment following the exchange’s collapse in November 2022.
Judge Kaplan found Bankman-Fried guilty of witness tampering related to the revocation of his bail in August 2023, as well as perjury based on his trial testimony regarding FTX user funds. The judge acknowledged Bankman-Fried’s “social awkwardness” but cited testimony from former Alameda Research CEO Caroline Ellison, stating that Bankman-Fried was aware of his wrongdoing but refused to admit fault.
According to the docket entry, Judge Kaplan indicated that Bankman-Fried’s time already served would be deducted from his sentence, resulting in 291 months in prison. Additionally, the judge proposed an $11 billion judgment in addition to the prison term. He highlighted the losses incurred by FTX investors, lenders, and customers, amounting to $1.7 billion, $1.3 billion, and $8 billion, respectively.
Judge Kaplan rejected the defense’s argument regarding loss, asserting that the claim that customers and creditors would be paid in full was misleading. He stated, “The assertion that customers and creditors will be paid in full is misleading — defendants equate loss with dollar volume in the bankruptcy case.”
