- Sam Bankman Freed was sentenced Thursday to 25 years in prison.
- Prior to the sentencing, the ousted cryptocurrency tycoon admitted he had “failed” and apologized.
- He expressed his regrets to his former colleagues at the bankrupt cryptocurrency exchange FTX.
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Fallen crypto tycoon Sam Bankman Fried spoke out Thursday in a federal courtroom in Manhattan ahead of his 25-year prison sentence, telling FTX customers who lost their life savings and “the planet Earth” before he was released. He apologized to the employees who chased him. bring them down.
“They all had really beautiful things,” Bankman-Fried said, referring to the collapsed cryptocurrency exchanges. “They threw themselves into it, and I threw it all away. It haunts me every day.”
Bankman Fried appeared calmer than he did during the October trial. He spoke carefully, pausing occasionally as he addressed U.S. District Judge Lewis Kaplan.
“My life is probably over, and it’s probably going to end long after I was arrested,” Bankman Freed said.
Before Bankman Freed issued its statement, it heard from two former FTX clients, Sunil Kavri and Adam M. Moskowitz, a lawyer involved in a class action lawsuit against Bankman Freed and other former executives. I heard a shocking statement.
“For two years, every day was a nightmare with FTX,” Kavri said.
Meanwhile, Moskowitz asked the judge to consider Bankman Freed’s cooperation in the collection case.
The 32-year-old co-founder of now-bankrupt cryptocurrency exchange FTX was found guilty in November on seven counts of wire fraud, money laundering and conspiracy after a six-week criminal trial.
“I have lost everyone I care about and everything I hold dear,” Bankman Fried said in court before sentencing Kaplan for what prosecutors called one of the largest financial frauds in U.S. history. I betrayed him,” he said.
Bankman Freed said she watched her colleagues “throw away everything they had built.”
“They were very disappointed. I’m sorry for that. I’m sorry for what happened every step of the way,” he said.
He added that his pain is not as important as that of his customers and creditors, noting that “watching this all unfold in slow motion is unbearable.”
Still, he said he doesn’t believe the story of why his customers suffered has been “accurately communicated or told.”
He once again attempted to shift blame for how and why the cryptocurrency exchange collapsed, claiming it had “sufficient assets” to make its customers whole. His lawyer claimed his client suffered “zero” losses.
Bankman Freed argued that customers “could have been able to repay” the loan at 2022 prices or at current prices, including inflation.
“We’re hopeful and optimistic that eventually it will happen,” Bankman Fried said. “They deserve it… They have enough assets for that. There always have been.”
Kaplan rejected this argument, calling it “speculative” and “misleading.”
He went on to list three instances in which Bankman Freed perjured himself on the witness stand. when he said he was unaware of the $8 billion in debt on the company’s balance sheet. And when he claimed he didn’t know he needed to borrow additional funds to repay his customers.
Kaplan said the list is not exhaustive, adding that it would not be “a good use of time to clearly explain” all of Bankman Fried’s lies on the stand. Kaplan said Bankman Fried acknowledged he made a mistake but showed no remorse.
Before sentencing Bankman Fried, Mr. Kaplan said: Said He mentioned that he had previously pitched himself to the media to change the image and version of events at FTX, and wanted to prevent him from doing any more harm.
“There is a risk that this man will be in a position to do something very bad in the future and that is not a trivial risk, it is by no means a trivial risk,” the judge said, adding that the sentence “needs to reflect the issue”. he pointed out. seriousness of the crime. ”
Kaplan said the sentence would be aimed at “incapacitating Mr. Bankman-Fried for a ‘substantial period of time to the extent reasonably possible.’
Bankman Fried could have faced up to 110 years in prison after FTX’s collapse. Prosecutors compared him to the late and notorious Wall Street leader Bernie Madoff and asked for a sentence of 40 to 50 years in prison.
Damian Williams, an attorney for the Southern District of New York, said in a statement after the verdict that Bankman Freed “orchestrated one of the largest financial frauds in history, stealing more than $8 billion in customer funds.”
“His deliberate and persistent lies demonstrate a brazen disregard for his clients’ expectations and a disregard for the rule of law, all while secretly using clients’ funds to expand his own power and influence. “It was for a reason,” Williams said.
The sentence handed down to Bankman Freed will prevent him from “competing fraud again” and will ensure that “justice is brought swiftly to those who may choose to commit financial crimes.” “This will send an important message that the consequences will be severe.” Williams.
This story has been updated.