FTX Founder Sam Bankman-Fried Sentenced to 25 Years in Prison for Cryptocurrency Fraud

Mar. 15, 2025

TX founder Sam Bankman-Fried (L).Photo: MARIO DUNCANSON/AFP via Getty

DisgracedFTX Founder Sam Bankman-Friedwillspend 25 years in prison after being convicted of financial fraud, a Manhattan judge has ruled on Thursday.

Bankman-Fried, 32, wasfound guilty on seven fraud chargesin November for defrauding his customers with his failed digital currency exchange company, FTX, PEOPLE reported previously.

He was found guilty ofwire fraud, securities fraud and money laundering, prosecutors said, for defrauding customers in his FTX crypto exchange firm and defrauding investors for his investment firm Alameda Research.

In addition to the prison sentence, Bankman-Fried was also ordered to pay $11.2 billion,CNNreports.

Bankman-Fried used billions of dollars from his FTX customers tofund his personal investmentsand paying off debts incurred on Alameda Research, authorities said previously.

At his sentencing on Thursday, Bankman-Fried addressed the court and apologized “about what happened at every stage,” according toCNN, which live-streamed Thursday’s hearing.

“A lot of people feel really let down, and they were very let down, and I am sorry about that.” he added. “I am sorry about what happened at every stage. And there are things I should’ve done and things I shouldn’t have.”

In a meandering statement to the court, Bankman-Fried admitted that he made “a series of bad decisions” as the CEO of FTX, per CNN. He also commended his former business partners, including co-founder Gary Wang and his ex-girlfriend Caroline Ellison, both of whom testified against him in trial in compliance with their plea agreements.

Together, they all “built something beautiful,” Bankman-Fried said. “And I threw it all away. It haunts me every day.”

He also told the court he’d been pained to see FTX’s customers suffer. “It’s been excruciating to watch,” he said.

He also seemingly acknowledged the road ahead: “My useful life is probably over. It’s been over for a while now.”

What Was FTX?

FTX, which Bankman-Fried founded in 2019, was acryptocurrency exchange company.Bankman-Fried’s enormous wealth, whichForbesestimated to be worth $26.5billion at its peak, “was tied up in ownership of about half of FTX and a share of its FTT tokens," per the business magazine.

Prosecutors filed criminal charges against Bankman-Fried, who wasarrested in December 2022in the Bahamas, Damian Williams, the United States Attorney for the Southern District of New York, announced at the time.

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Bankman-Fried’s series of crimes was “one of the biggest financial fraudsin American history," Williams, who heads the federal prosecutors' office in Manhattan that charged Bankman-Fried, said at the time.

Bankman-Fried’s net worth wasvalued at $0as of the day of his sentencing, according toForbes.

source: people.com