Former FTX CEO Sam Bankman-Fried, known as “SBF,” has been handed a 25-year prison sentence by Judge Lewis Kaplan of the United States District Court for the Southern District of New York. The sentencing, which took place on March 28, follows Bankman-Fried’s conviction on seven felony charges related to his involvement with FTX and Alameda Research.
Judge Kaplan’s decision involved a total of 240 months and an additional 60 months, reflecting the severity of the crimes. Bankman-Fried becomes the first individual connected to FTX and Alameda Research to face incarceration since the exchange’s collapse in November 2022.
The sentencing also addressed Bankman-Fried’s actions, including witness tampering and perjury. These charges stemmed from events leading to the revocation of his bail in August 2023 and his testimony during the trial concerning FTX user funds. Despite acknowledging Bankman-Fried’s “social awkwardness,” Judge Kaplan emphasized that he showed a lack of accountability, as revealed by former Alameda Research CEO Caroline Ellison’s testimony.
In his statement, Judge Kaplan stressed the gravity of the crimes, asserting, “Punishment must fit the seriousness of the crime.” He criticized Bankman-Fried’s conduct during the trial, describing it as evasive and characterized by attempts to manipulate questioning.
A docket entry for the Southern District of New York on March 28 indicated that Bankman-Fried’s time served would be deducted from his sentence, resulting in 291 months in prison. Additionally, Judge Kaplan proposed an $11-billion judgment against Bankman-Fried, citing significant losses incurred by FTX investors, lenders, and customers amounting to $1.7 billion, $1.3 billion, and $8 billion, respectively.
Bankman-Fried’s sentencing marks a significant development in the legal aftermath of FTX’s collapse, highlighting the accountability of individuals implicated in financial misconduct.
