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FTX founder Sam Bankman-Fried was sentenced to 25 years in prison by a federal judge on Thursday in Manhattan.
The ruling falls under the prosecution’s proposed 40-50 year sentence and the defense’s recommendation of six and a half years. Bankman-Fried’s convictions carry a maximum sentence of 110 years.
Bankman-Fried was convicted in November 2023 on seven counts of fraud and conspiracy following a five-week trial. The jury deliberated for just over four hours before finding Bankman-Fried guilty on all counts.
The government earlier this month urged presiding judge Lewis Kaplan to hand down a hefty sentence, arguing that the disgraced founder should face a “severe sanction, proportionate to his role in this historic fraud.” The defense called the recommendation “medieval,” adding that because there were “no losses” and FTX customers are expected to be made whole, Kaplan should choose leniency.
Current FTX CEO John J. Ray pushed back on the defense’s claims around losses, saying that the “best conceivable outcome” of the bankruptcy “will not yield a true, full economic recovery” for creditors and investors “as if the fraud never happened.”
Bankman-Fried brought in attorney Marc Mukasey last month to handle his sentencing. Mark Cohen and Christian Everdell, who represented Bankman-Fried through his trial, left the team earlier this month.
The former CEO has been held at the Metropolitan Detention Center in Brooklyn since his bail was revoked in August 2023 after prosecutors accused him of tampering with witnesses. The jail is notorious for its poor conditions, with some judges refusing to send convicts there, citing staffing shortages and safety concerns.
Last month, US District Judge Kevin Castel granted a Justice Department motion to stay lawsuits filed against Bankman-Fried by the Securities and Exchange Commission and Commodity Futures Trading Commission. These civil suits will be on hold until Bankman-Fried’s criminal proceedings conclude.
Prosecutors in December said they would not pursue a second criminal trial for Bankman-Fried’s alleged campaign finance violations, citing a “strong public interest” in wrapping up criminal proceedings as quickly as possible.