FTX co-founder Sam Bankman-Fried was sentenced to 25 years in prison for stealing billions of dollars from customers, marking the final chapter in a case that has both captivated and overshadowed the crypto industry.
US District Judge Lewis A. Kaplan delivered the sentence in federal court in Manhattan moments after Bankman-Fried said he was “sorry about what happened at every stage.” He faced as long as 110 years behind bars after being convicted last year of seven offenses, including fraud and conspiracy.
The one-time billionaire became a symbol of malfeasance and greed in the crypto world after his hugely popular FTX exchange collapsed, exposing a years-long fraud that swindled about $10 billion from customers. Bankman-Fried, 32, had denied knowingly committing fraud and claimed he and his crypto empire were victims of market downturns in 2022.
Kaplan dismissed Bankman-Fried’s 20-minute statement, saying he wasn’t truly remorseful, and focused instead on the severity of the crime.
“There is a risk that this man will be in a position to do something very bad in the future,” Kaplan said. “And it’s not a trivial risk. Not a trivial risk at all.”
In addition to the prison sentence, Kaplan said that Bankman-Fried should forfeit more than $11 billion.
At trial, prosecutors said Bankman-Fried siphoned billions of dollars from FTX to its sister hedge fund, Alameda Research, to spend on speculative investments, more than 300 political donations, and expensive real estate.
Faced with market volatility, lenders began asking for their money in 2022 and Bankman-Fried used FTX customer funds to pay them back. But a rush of customer withdrawals culminated in FTX filing for bankruptcy in November 2022, and Bankman-Fried stepping down as chief executive.
A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.
Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.
Some in the industry say that more UBS financial advisors this year will be heading for the exits.
The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.
Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.
Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
