The "largest financial fraud case in U.S. history" has come to an end. Former currency tycoon Sam Bankman-Fried (SBF) was sentenced to 25 years in prison and a fine of US$11 billion.
On March 28, U.S. District Judge Lewis A. Kaplan finally sentenced SBF in Manhattan Federal Court to seven counts of conspiracy to defraud and conspiracy to commit money laundering. He was sentenced to 25 years in prison and confiscated more than $11 billion. assets.
The trial of this financial fraud case began in early October last year, and the final sentencing date is scheduled for March 28, 2024. He was convicted last year on seven counts, including fraud and money laundering, and could face up to 110 years in prison. However, on March 28, although prosecutors requested a sentence of up to 50 years in prison, the judge ultimately sentenced him to 25 years, much lower than the previous 110 years.
SBF's sentence may be reduced to 12.5 years
In the U.S. federal prison system, although there is no formal parole system, inmates may still have their sentences reduced for good behavior under federal law. They can usually reduce their sentences by up to 54 days per year. This means that a prisoner sentenced to a longer sentence may actually only have to serve about 85% of the time.
Take the case of former Enron CEO Jeffrey Skilling, for example. Although he was sentenced to 24 years in prison for accounting fraud, he actually only served about 12.5 years in prison due to his good behavior. But that doesn't mean all prisoners sentenced to 25 years will end up serving 12.5 years. The actual time SBF serves will depend on his behavior in prison.
Former federal prosecutor Mitchell Epner told the media: "If SBF can obtain all available prison credits, his sentence may be shortened to 12.5 years."
Arush Sehgal, an FTX victim who lost more than $4 million in assets on the exchange, expressed his dissatisfaction with the 25-year sentence, saying: “This is a disgustingly light sentence that is devastating to the victim. Such an insult."
Regarding the verdict, netizens complained on the X platform:
"This is outrageous!"
"No matter what the reason is, if he doesn't serve enough time, he might be released early!"
"The prison sentence is only one year for every $320 million stolen, outrageous!"
SBF denies knowingly committing fraud
Before the verdict, SBF tried to reduce his sentence, and SBF's lawyer suggested only 6.5 years, and tried to prove that SBF was a very kind and generous person. In addition, SBF denied intentionally committing fraud, and claimed that he and his crypto empire were victims of the 2022 market downturn, and expressed "regret" for his actions at various stages.
However, Judge Kaplan dismissed SBF's 20-minute statement, arguing that he had not truly repented but only regretted the outcome. Kaplan emphasized: "Although SBF has been convicted and faces prison terms, he has never expressed remorse for the serious crimes he committed. He knows it is wrong, but he may harm society again in the future. This risk is that the court must take seriously considerate."
During the trial, prosecutors alleged that SBF misused and transferred FTX funds and used them for illegal personal and corporate activities, such as making high-risk investments, making more than 300 political donations, and purchasing expensive real estate such as luxury homes. Moreover, SBF used the wrong method to repay debts when facing pressure from the market and customers, which ultimately led to the bankruptcy of the FTX exchange and huge losses of approximately US$10 billion to customers.
Specifically, in 2022, amid volatile market conditions, borrowers began to demand that FTX return their funds. Faced with this situation, SBF was accused of using FTX customer funds to repay borrowers. As more and more customers withdrew their funds, FTX faced a financial crisis, with an $8 billion hole in its balance sheet, leading to FTX filing for bankruptcy in November 2022, and SBF resigning as CEO.
It is reported that after Judge Kaplan announced the verdict, the SBF believed that the sentence was too harsh and intended to challenge the verdict and expressed its intention to appeal against the conviction.
Regarding the verdict, Mark Bini, a former federal prosecutor and current lawyer at Reed Smith, said: “Although the judge’s verdict was shorter than the 40 to 50 years originally requested by prosecutors, it is still a significant sentence. .because it sends a message that those convicted in the cryptocurrency space will face severe consequences.”
This article comes from Wall Street News
