Sam Bankman sentenced to 25 years in prison for multi billion dollar fraud in FTX

Sam Bankman Fried: FTX founder Sam Bankman Freud has been sentenced to 25 years in prison for a billion-dollar fraud. This is how shocking news came for Sam Bankman, once known as the Crypto King. In the year 2022, Sam Bankman was sentenced for his role in the collapse of FTX, one of the world's most popular platforms for digital currency exchange. A decisive verdict was given in this 2 year old case in which billions of dollars of thousands of investors were wiped out in one fell swoop. Sam Bankman-Freud, the founder of FTX company, was considered a 'crypto-billionaire' and 'the most powerful investor in the crypto world.

Sam is accused of one of the largest financial frauds in American history.

US District Judge Lewis Kaplan imposed the sentence in a Manhattan court hearing after rejecting Bankman-Freud's claims that FTX clients did not actually lose money and that she lied during her trial testimony. On November 2, a US court jury found Sam Bankman-Froid, 32, guilty of seven counts of fraud and conspiracy related to the 2022 collapse of FTX. It is being called one of the largest financial frauds in American history.

FTX customers lost billions of dollars

US District Judge Lewis Kaplan said FTX clients lost $8 billion, FTX equity investors lost $1.7 billion and lenders to Alameda Research hedge fund Bankman-Freud lost $1.3 billion. The judge also said that Bankman-Freud had lied during her testimony when she said she “did not know that her hedge fund had spent customer deposits taken from FTX.”

Sam Bankman Freud detained in August 2023 and arrested in December 2023

Bankman-Freud has been detained at the Metropolitan Detention Center in Brooklyn since August 2023. At the time, when Kaplan's bail was revoked after findings of possible witness tampering on at least two occasions, Kaplan said he would recommend that Bankman-Freud be sent to a prison near San Francisco. Sam Bankman Freud, CEO of bankrupt crypto exchange FTX, was arrested in the Bahamas on December 13.

what is the whole matter

Sam Bankman-Fryod, CEO of crypto exchange FTX, suddenly resigned from his post on November 11, 2022 and his FTX applied for protection under the bankruptcy law in the US. This crypto-exchange, which is stuck in financial crisis, had given this information in a statement on November 11. Sam Bankman-Freud's net worth fell by almost 94 percent in 24 hours and his wealth dropped to $991.5 million, whereas he was the owner of $15.2 billion. According to Bloomberg report, this was the biggest decline in the wealth of any billionaire in 1 day.

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