The founder of the cryptocurrency exchange FTX was sentenced in the USA. How many years in prison did he receive.

The founder of the cryptocurrency exchange FTX was convicted of fraud

The founder of the bankrupt cryptocurrency exchange FTX, Sam Bankman-Fried, was convicted of fraud against investors. The Federal Court in Manhattan (USA) sentenced the man to 25 years in prison. He was also ordered to pay 11 billion dollars. These funds will be used to compensate the losses to the exchange's clients, reports Radio Liberty.

During the court session, prosecutors called the collapse of the FTX exchange "one of the largest financial frauds in US history." The founder of FTX admitted that the exchange's clients suffered.

The jury previously found the 32-year-old Bankman-Fried guilty on seven counts of fraud and conspiracy that resulted from the collapse of FTX in 2022.

Losses for clients and investors

The court determined that FTX clients lost 8 billion dollars, FTX investors - 1.7 billion dollars, and creditors of the hedge fund Alameda Research, founded by Bankman-Fried, lost 1.3 billion dollars.

Prosecutors' statements and the verdict

Federal prosecutors demanded a prison sentence of 40 to 50 years for the businessman. The lawyer argued that the sentence should not exceed 5-5.5 years in prison.

Arrest and bankruptcy of FTX

The founder of the cryptocurrency exchange was arrested in December 2022. He was accused of misappropriating billions of dollars from clients. Bankman-Fried was found guilty in November 2023, but the sentence was announced only on March 28.

About the FTX exchange

FTX - a cryptocurrency exchange service, registered in 2019. As of 2021, the company had over a million users and by transaction volume was the third largest among cryptocurrency exchange services worldwide. In 2022, the company went bankrupt after a liquidity crisis, resulting in investors losing access to their deposits on the FTX exchange.