FTX Founder Sam Bankman-Fried Appeals Fraud Conviction

Last November, following a month-long court proceeding, Bankman-Fried was found guilty of seven distinct offenses, which included defrauding both FTX clients and Alameda Research investors. Filings for bankruptcy had already been submitted by his businesses the previous year.

About two weeks ago, Bankman-Fried was given a 25-year prison term by the federal court for his involvement in the failure of the exchange. Additionally, he is required to serve three years under supervision after his release, and must forfeit an amount totaling $11 billion.

Judge Lewis Kaplan of the New York District Court stated that Sam Bankman-Fried did not show genuine regret for his wrongdoings. He described Bankman-Fried’s compassionate image as a mere facade. The judge believed that the sentence, which was less severe than the lengthy imprisonment proposed by federal prosecutors but more stringent than the 6.5-year term suggested by Bankman-Fried’s lawyers, was essential to prevent him from repeating similar offenses in the future.

Despite Kaplan’s decision to place Bankman-Fried in a low or medium-security prison close to his family in Northern California due to autism concerns and potential risks in maximum security facilities, Bankman-Fried has unexpectedly requested to stay at the notorious Manhattan Detention Center instead during his appeal proceedings.

Some of Bankman-Fried’s ex-colleagues and alleged accomplices, who provided proof against him and took the stand during his trial, have not received their sentences yet.

In November 2022, Bankman-Fried was taken into custody in the Bahamas. This action came shortly after FTX and Alameda, along with their international affiliates, submitted bankruptcy filings. The filing was initiated following the release of a CoinDesk report highlighting unusual transactions on FTX’s financial statement.

During his October trial, federal prosecutors alleged that he intentionally misappropriated client and investment money, and deceived the court regarding its intended use.

UPDATE (April 11, 2024, 16:36 UTC): Adds additional detail.

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