Former FTX CEO Sam “SBF” Bankman-Fried has been sentenced to 25 years in prison for multiple felony convictions, leading to mixed reactions within the cryptocurrency community. On March 28, Judge Lewis Kaplan delivered a scathing statement about Bankman-Fried before announcing consecutive sentences of 240 months and 60 months, totaling 25 years behind bars. The judge compared Bankman-Fried to a thief, criticized his attempts to promote crypto regulation as disingenuous, and accused him of perjury and disregard for the planet’s future.
Bankman-Fried has been held at the Metropolitan Detention Center in Brooklyn since August 2023, when his bail was revoked for witness intimidation. According to a docket entry on March 28, the judge will credit the time already spent in jail, meaning Bankman-Fried will have a maximum of 291 months in prison, with his sentence expected to end in 2048. Judge Kaplan specified that Bankman-Fried will serve the remaining time at a medium- or low-security prison in the San Francisco Bay Area, with possible locations including the Federal Correctional Institution (FCI) Herlong and FCI Mendota.
While some expressed doubt that Bankman-Fried would serve the full sentence, it is important to note that parole is no longer available for federal charges. However, inmates with good conduct can have 54 days deducted from their sentence for each year served. In Bankman-Fried’s case, this could lead to a reduction of around 3.75 years, resulting in a total of 21.25 years served and a potential release in 2045. Bankman-Fried, who is currently 32 years old, could be in his mid-50s when he is released, provided he exhibits good behavior.
Bankman-Fried’s attorney, Marc Mukasey, stated that they intend to appeal the jury’s decision before the 14-day deadline for filing the necessary paperwork. Some individuals within the cryptocurrency community expressed the opinion that 25 years in prison was too lenient for Bankman-Fried, considering the impact on FTX users. However, others were surprised by the severity of the sentence, believing it to be more appropriate for violent criminals who pose a threat to public safety.
In terms of the FTX bankruptcy case, it is still ongoing in the District of Delaware. Debtors have submitted a potential plan to repay users based on the exchange’s collapse prices. Additionally, Judge Kaplan issued an $11 billion forfeiture judgment as part of Bankman-Fried’s criminal case. This forfeiture ensures that any future earnings made by Bankman-Fried will go to the government and the victims, preventing him from accumulating wealth in his lifetime. Even if Bankman-Fried were to start a successful business post-release, the government could seize those funds. This makes it unlikely that he will regain the same financial status he had prior to November 2022.