Crypto mogul, Sam Bankman-Fried sentenced to 25 years in prison over FTX fraud scheme

Crypto mogul, Sam Bankman-Fried was on Thursday sentenced to 25 years in prison for a massive fraud that unraveled with the collapse of FTX, once one of the world’s most popular platforms for exchanging digital currency.

A federal judge found Mr Bankman-Fried guilty of defrauding investors and clients.

Bankman-Fried, 32, was convicted in November, 2023 of fraud and conspiracy — a dramatic fall from a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.

U.S District Judge Lewis A. Kaplan imposed the sentence in the same Manhattan courtroom where, four months ago, Bankman-Fried testified that his intention had been to revolutionise the emerging cryptocurrency market with his innovative and altruistic ideas, not to steal.

Prosecutors said Bankman-Fried had cost customers, investors and lenders over $US10 billion ($15 billion) by misappropriating billions of dollars to fuel his quest for influence and dominance in the new industry, and had illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, alleged bribes to Chinese officials and private planes.