SBF’s aspirations exceeded all bounds, declares judge while pronouncing a 25-year jail term
In a surprising turn of events, the judge presiding over FTX founder Sam Bankman-Fried’s criminal case denounced his ambitions as excessive and handed down a hefty 25-year prison sentence. This decision comes as a staggering blow to the once-admired luminary of the cryptocurrency industry, as the judge characterized Bankman-Fried as not just exceptionally ambitious, but also a reckless gambler.
During the sentencing hearing, Judge Lewis Kaplan unveiled his scathing assessment, stating that Bankman-Fried displayed a willingness to play with the precarious fate of life and civilization on Earth, basing his decisions on infinitesimal odds of avoiding catastrophic consequences. This damning depiction ultimately led to the severe punishment, falling between the defense’s plea for 6.5 years and the government’s proposal of 40 to 50 years. Additionally, Bankman-Fried was ordered to forfeit a staggering $11 billion.
Judge Kaplan’s forceful remarks concluded the proceedings, following Bankman-Fried’s final statement in open court. Though the possibility of an appeal lingers, Bankman-Fried’s team has expressed their intentions to explore this path. In his address, Bankman-Fried strayed through a labyrinthine monologue that lasted 15 minutes, acknowledging the individuals he had failed, particularly his devoted former employees.
Expressing remorse, Bankman-Fried lamented, “They all created something truly remarkable. They dedicated themselves to it, and then I squandered it all. It torments me every day.”
The two-hour-long hearing also included statements from Sunil Kavuri, an FTX victim who dubbed himself a “creditor champion,” and Adam Moskowitz, the attorney leading the FTX class action lawsuit. Kavuri utilized most of his allotted time to criticize the legal representation of FTX throughout its bankruptcy proceedings. He argued for victims to be compensated with the gains made from their stolen funds.
Judge Kaplan, however, made it clear that the purpose of the hearing was solely to sentence Bankman-Fried, not to assess the actions of the bankruptcy estate. As Kavuri drifted off-topic repeatedly, the judge urged him to wrap up his remarks.
Kavuri was just one of over 115 victims who submitted impact statements to the court, accounting for nearly half of the 1,929 pages of sentence-related submissions. In contrast, Moskowitz kept his statement concise, emphasizing Bankman-Fried’s assistance to the class action team. He emphasized the importance of recognizing this cooperation while remaining uncertain about the extent of the benefits it might entail.
Throughout the proceedings, Bankman-Fried’s parents, Joe Bankman and Barbara Fried, who stood by him during the trial, appeared crestfallen. While they averted their gazes for most of the hearing and lowered their heads when the sentence was announced, they observed Bankman-Fried intently as he addressed the court.
In a compassionate gesture, Judge Kaplan requested that Bankman-Fried serve his sentence in a minimum or medium-security facility, ideally close to his family in San Francisco, CA.