Closing summary
Nick Robins-Early
Sam Bankman-Fried, former CEO of cryptocurrency exchange FTX, was sentenced to 25 years in prison for crimes of fraud and conspiracy. Judge Lewis Kaplan issued the sentence in a Manhattan courtroom on Thursday, declaring that the former billionaire committed a “very serious crime” and lacked remorse.
-
Bankman-Fried arrived in the courtroom just after 9:40am in the morning, wearing a khaki prison jumpsuit. His hair, previously cut short for his trial, had grown back to the messy style he was known for while head of FTX. He once said that the trademark cloud above his head was good for business.
-
Judge Lewis Kaplan opened the hearing by going through sentencing guidelines, stating that he rejected the defense’s argument that there “was no loss” as a result of the fraud at FTX.
-
Kaplan also rejected Bankman-Fried’s argument that customers could be paid back. Kaplan compared the former billionaire to “a thief who takes his loot to Las Vegas,” saying that Bankman-Fried was not entitled to leniency by trying to use his winning to pay back what he stole.
-
Kaplan stated that Bankman-Fried committed perjury numerous times during his testimony in the trial, listing three specific occasions but saying that there were many more he could have added.
-
Bankman-Fried sat slumped in his chair during the sentencing, occasionally conferring with his lawyers or crossing his arms.
-
One victim of FTX’s fraud who flew in from London gave a statement to the court, saying that he “suffered every day” as a result of Bankman-Fried’s actions.
-
Bankman-Fried’s defense attorney, Marc Mukasey, argued that his client never intended to commit harm and “doesn’t make decisions with malice in his heart”. He described Bankman-Fried as an “awkward math nerd” who loves video games and animals, saying that comparisons to criminals such as Bernie Madoff were false. Mukasey mounted a similar defense during Bankman-Fried’s trial.
-
Much of Mukasey’s statement focused on Bankman-Fried’s philanthropy, and painted the former crypto mogul as a sensitive, misunderstood figure who struggled with depression and social awkwardness. He described Bankman-Fried as “a beautiful puzzle”.
-
Bankman-Fried stood to deliver his own statement during the sentencing, awkwardly apologizing for the fall of FTX by saying “sorry about what happened”. He claimed that he made “a series of bad decisions” that ruined the work of his cherished employees and colleagues, name-checking co-founder Gary Wang and his former girlfriend Caroline Ellison – both of whom testified against him.
-
Bankman-Fried painted the fall of FTX as “mismanagement” and veered into what he saw as issues around the handling of its bankruptcy. He held onto opposite elbows, fumbling over his words at times while saying he wanted to help customers get paid for their losses.
-
The government prosecutor gave a statement rejecting Bankman-Fried’s apology, saying that there was no remorse for his crimes or real acknowledgement of the harm he committed. The judge agreed.
-
The prosecutor detailed cases of victims such as an elderly couple who lost their life savings and a 23-year-old man in a Morocco with a disabled father who trusted FTX with his funds.
-
Before reading his sentence, Judge Kaplan gave a statement that noted Bankman-Fried came from an “exceptionally privileged background” and was extremely intelligent. He also acknowledged that Bankman-Fried has autism and said he took his condition and social awkwardness into account in the sentencing.
-
Kaplan stated that Bankman-Fried wanted political and financial power and influence, and was willing to take any chances to get it. He declared that Bankman-Fried was aware what he was doing was wrong, and was always calculating the probability of getting away with his crimes.
-
The judge cited Caroline Ellison’s testimony that Bankman-Fried was willing to take risks if the “expected value” calculation was in his favor, even if it meant risking extreme harm. He also chastised Bankman-Fried for a lack of remorse and “evasive, hair-splitting” testimony during the trial.
-
Kaplan sentenced Bankman-Fried to 25 years in prison, with three years of supervised release afterward. He recommended a medium-security correctional facility somewhere in the Bay Area, and gave a period of time for the former billionaire to appeal his sentence.
-
Bankman-Fried made little reaction as the sentence was read.
Key events
Show key events only
Please turn on JavaScript to use this feature
Podcast: Crypto on trial–the downfall of Sam Bankman-Fried
The Guardian’s Today in Focus recounts the spectacular rise and fall of crypto’s onetime king
See inside the courtroom at Bankman-Fried’s sentencing
Sam Bankman-Fried stands at the defense table to make a statement to US District judge Lewis Kaplan. » …
Read More
