Sam Bankman-Fried Sentenced to 76 years for Defrauding the Rich
Posted December 4 2023
NEW YORK — US Federal Appeals Judge Diogo Nikita handed down a final sentence for fallen crypto mogul Sam Bankman-Fried of 76 years in federal prison after a Manhattan jury found him guilty on all 7 counts of securities fraud, wire fraud, and misrepresenting and lying to investors over the stability of FTX’s liquidity pools. Legal spectators commented on the quick and brutal smackdown provided by the US government against the former tech star, with dozens of testimonies from former employees like former CTO Gary Wang, former engineering director Nishad Singh, and of course, star witness CEO of Alameda Research and ex-girlfriend Caroline Ellison. The SEC was able to successfully outline an extensive and complicated network of shell companies which secretly allowed Alameda Research to siphon money out of the $1.8 billion of investor money FTX has raised, a process which eventually led to FTX’s dramatic collapse when a crash in crypto confidence caused a run on its reserves, which lacked the money it claimed to have. Summarizing the decision for the harsh sentence, Judge Nikita wrote that the “Defendant participated in one of the most egregious, costly frauds in human history, with over a billion dollars of misappropriated funding. Defendant failed to show even the slightest amount of remorse for his actions or the irreparable financial harm caused by his greed to millions of misled investors. It would’ve been one thing if he scammed the average plebeian, but Defendant flew too close to the Sun. How dare he betray the multimillionaires who only wanted to use their limitless wealth to accumulate more wealth? Like Madoff, he will never see the light of day again.” Commenting on the historic success of SBF’s prosecution, SEC Chair Gary Gensler wrote that the “SEC was incredibly pleased that justice was seized today and it is incredibly grateful to the months of effort put in by investigators from several federal agencies and the Bahamas. The record $539 million seized in forfeiture would be redistributed to victims of FTX’s fraud, starting with the investors with the most market share. Making a fool out of Tom Brady, Naomi Osaka, and Kevin O’Leary by having them endorse an obvious pyramid scheme cannot be met without punishment. Sam Bankman-Fried’s conviction on violating the 1933 Securities Act and the 1934 Securities Exchange Act sends a very clear message to the American public- we will not tolerate fraud if it encroaches upon the portfolios of the wealthy and powerful.” At press time, Commissioner Gensler announced the SEC had settled with Wells Fargo Inc. over charges that it created fraudulent accounts in its customers’ names to embezzle funding into offshore accounts, with Wells Fargo neither admitting or denying the charge in exchange for a $16 fine.