- FTX founder Sam Bankman-Fried sentenced to 25 years for $8 billion fraud.
- Judge Kaplan noted Bankman-Fried’s lack of regret and issued an $11 billion forfeiture order.
- The conviction comes amidst legal action against Binance and a potential crypto comeback.
Sam Bankman-Fried, the 32-year-old founder of FTX, has been sentenced to 25 years in prison for defrauding customers of $8 billion in one of the most significant financial fraud cases in the United States.
A Reuters report stated that Bankman-Fried was found guilty on seven fraud and conspiracy counts related to the shutdown of FTX in November 2022.
Lack of regret and forfeiture order
US District Judge Lewis Kaplan noted Bankman-Fried’s lack of regret during the sentencing, stating that the founder knew his actions were illegal but refused to admit it.
The judge allowed the government to use confiscated assets to repay victims and issued an $11 billion forfeiture order. Despite his lawyers arguing for a shorter sentence, prosecutors pressed for a typical 40- to 50-year term.
Legal Action amidst crypto comeback
Bankman-Fried’s criminal conviction marks a significant decline in his net worth, which was once estimated at $26 billion. However, he is not the only crypto mogul facing legal action in the US.
Changpeng Zhao, the founder of Binance, is currently facing a lawsuit from the US Commodity Futures Trading Commission for “willful evasion” of law.
The government body alleged that Binance and its executives directed employees to skirt compliance controls. These legal troubles come at a time when the crypto scene is seeing hints of a comeback, with Bitcoin recently hitting a record high value.
