Brown Rudnick’s partner Hayley Lennon talks about the criminal fraud case against Sam Bankman Freed on “Making Money.”
FTX founder Sam Bankman Freed was sentenced Thursday by Judge Lewis A. Kaplan to 25 years in prison.
Prosecutors had asked for a sentence of 40 to 50 years in prison for the disgraced crypto tycoon. Bankman Freed’s legal team plans to appeal the conviction and sentence.
His parents, Barbara Bankman Freed and Joseph Bankman Freed, were also present in court.
Bankman Freed, 32, was found guilty on two charges in November. Wire fraud and five counts of conspiracy Following the collapse of his cryptocurrency empire FTX, which has been compared to Enron, in November 2022. The exchange had merged assets with sister hedge fund Alameda Research amid the cash crunch, leaving it exposed to a wave of customers withdrawing their funds. Bankman Freed was indicted the following month.
FTX CEO John Ray has harsh words for Sam Bankman Fried
FTX founder Sam Bankman Freed testifies on the witness stand in federal court in New York, New York, on October 30, 2023. (Jane Rosenberg)
By comparison, disgraced Theranos founder Elizabeth Holmes is serving an 11-year sentence, but could face up to 80 years in prison. Bernie Madoff was sentenced to 150 years in prison and died in prison.
Exclusive: Elizabeth Holmes strolls through the prison yard on her second day as a prisoner at the Bryon Federal Penitentiary in Texas. (Exclusive image courtesy of SplashNews.com Splash News and Photos US: 310-525-5808 UK: 020 8126 1009 eamteam@shutterstock.com World Rights)
Bankman Fried, who at one point amassed an estimated $26 billion fortune by taking advantage of the rise in Bitcoin prices, is also expected to be ordered to pay compensation.
FTX and Sam Bankman Freed Trial: Players
Bitcoin, which made up the majority of Bankman Fried’s net worth, fell to $15,000 earlier this year following the Securities and Exchange Commission’s approval of a Bitcoin ETF, but has since risen to more than $70,000. It has recovered to the same level.
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Even if virtual currency were to recover, it is unclear how it would affect compensation to victims.
