The above sentence was given in Manhattan federal court, significantly lower than the 40-50 years in prison that federal prosecutors wanted for Bankman-Fried. However, this sentence is still much higher than the 5-6.5 years proposed by the lawyers.
Judge Lewis Kaplan said the damage that Bankman-Fried causing up to 11 billion USD, including 1.7 billion USD from investors, 1.3 billion USD with loans from Alameda Research fund and a loss of 8 billion USD for customers of FTX exchange.
Previously in November 2023 Sam Bankman-Fried was convicted of 7 different crimes including fraud and being behind the collapse of the cryptocurrency exchange in 2022. Prosecutors called this one of the the biggest scam in industry history finance USA.
FTX cryptocurrency exchange was founded by Sam Bankman-Fried in 2019 and is headquartered in the Bahamas (an island country in the Caribbean). . In May 2022, FTX officially surpassed Coinbase to become the world’s second largest electronic exchange in terms of market share, only after Binance.
However, on November 11, 2022, FTX filed filed for bankruptcy due to difficulties in raising money to prevent a collapse when traders massively withdrew $6 billion from the platform in just 72 hours. The collapse of FTX also led to a series of consequences in the cryptocurrency market.
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