Crypto king jailed for 25 years

Sam Bankman-Fried, a disgraced crypto entrepreneur, has been sentenced to 25 years in prison for stealing billions of dollars from his customers.

He was the CEO of FTX, a company that suddenly went bankrupt in November 2022, leaving millions of users unable to access their accounts or withdraw their money.

Despite facing a potential 100-year sentence, Bankman-Fried’s lawyers argued for a shorter term, claiming a five-year sentence would be more fitting. Prosecutors, on the other hand, pushed for a 40 to 50-year sentence, citing the need to protect the public and deter future criminals.

Secret back doors

During the trial, it was revealed that Bankman-Fried’s other company, Alameda Research, had secret back doors allowing it to access funds belonging to FTX customers and make risky investments without their consent. The judge criticised Bankman-Fried for lying on the witness stand and misleadingly claiming that victims would be fully reimbursed.

The jury in New York took just five-and-a-half hours to convict him of multiple counts of fraud and conspiracy. FTX faced a financial shortfall of $10 billion (£7.9 billion) due to customers’ funds being used for risky cryptocurrency trades.

Bankman-Fried’s crimes have left approximately 80,000 victims, many of whom are based in the UK, out of pocket, with some losing their life savings. Prosecutors labelled his actions as one of the largest financial frauds in US history.