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Disgraced crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison after being convicted of stealing billions of dollars from his customers.

He was the chief executive of FTX, which suddenly went bankrupt in November 2022 – leaving millions of users frozen out of their accounts and unable to make withdrawals.

The 32-year-old American could have faced up to 100 years behind bars – but last month, his lawyers argued such a sentence would have been “barbaric” and a five-year term would be more appropriate.

Initial reports said he had been sentenced to 20 years – but this has since been corrected to 25.

Prosecutors had asked the judge to jail Bankman-Fried for 40 to 50 years, arguing the public needed protecting from the fraudster and a harsh punishment would deter other criminals.

“The defendant victimised tens of thousands of people and companies, across several continents, over a period of multiple years,” prosecutors said in a court filing.

“He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence.”

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Prosecutors also said Bankman-Fried had cost customers, investors and lenders over $10bn (£7.9bn) by misappropriating funds to fuel his quest for influence and dominance in the new industry, and had illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, alleged bribes to Chinese officials and private planes.

At the sentencing hearing in Manhattan, Judge Lewis Kaplan said the businessman lied on the witness stand when he insisted he had no knowledge of customer funds being used this way.

The judge also described Bankman-Fried’s claim that victims will be paid back in full as “misleading and logically flawed”.

“A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on the sentence by using his Las Vegas winnings to pay back what he stole,” Judge Kaplan warned.

Crypto king’s jail term is end of an era

Sam Bankman-Fried was breathlessly described as a wunderkind – a boy wonder transforming the world of finance.

Renowned for his messy hair and unkempt appearance, he graced the covers of Forbes and Fortune, who pondered whether he could become the next Warren Buffett.

The 32-year-old was the founder of FTX, which had quickly become the world’s second-largest cryptocurrency exchange – a place where investors could buy and sell digital assets like Bitcoin.

Star-studded adverts featuring the tennis player Naomi Osaka and the comedian Larry David added to its allure – with eye-watering sums spent on sponsorship deals.

But in November 2022, Bankman-Fried’s crypto empire came crashing down after it emerged that customer funds worth $10bn (£7.9bn) was missing.

Read the full analysis here

The judge said that the sentence reflected “a risk that this man will be in a position to do something very bad in the future”.

“And it’s not a trivial risk at all.”

He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time”.

Before he was sentenced, Mr Bankman-Fried apologised in a rambling statement.

FILE PHOTO: Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. REUTERS/Amr Alfiky/File Photo
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Sam Bankman-Fried leaving court last July. Pic: Reuters

“A lot of people feel really let down. And they were very let down. And I’m sorry about that. I’m sorry about what happened at every stage,” he said.

“My useful life is probably over. It’s been over for a while now, from before my arrest.”

Judge Kaplan said he would advise the Federal Bureau of Prisons to send him to a medium-security prison or less near the San Francisco area because he’s unlikely to be a physical threat to other inmates or prison staff, and his autism and social awkwardness would make him vulnerable to other inmates in a high-security location.

Read more:
The meteoric rise and even sharper fall of Sam Bankman-Fried

Why industry may never recover from downfall of ‘crypto king’

It took just five-and-a-half hours for a jury in New York to convict him of two counts of fraud and five of conspiracy last November.

Three people from Bankman-Fried’s inner circle – including his former girlfriend Caroline Ellison – pleaded guilty to related crimes and testified at his trial.

Sam Bankman-Fried's colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters
Image:
Sam Bankman-Fried’s colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters

Bankman-Fried’s conviction followed a dramatic fall from grace from his time as chief executive of FTX – the second-largest cryptocurrency exchange in the world at one time – when he was worth billions of dollars on paper.

FTX allowed investors to buy dozens of virtual currencies, from Bitcoin to more obscure ones like Shiba Inu Coin.

FTX logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
Image:
Pic: Reuters

Flush with billions of dollars of investors’ cash, Bankman-Fried rode a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.

But after the collapse of cryptocurrency prices in 2022, Bankman-Fried tried to plug the holes in the balance sheet of FTX’s hedge fund affiliate, known as Alameda Research.

Bankman-Fried’s victims – an estimated 80,000 of whom are based in the UK – remain out of pocket, with some losing their life savings.

Prosecutors described his crimes as one of the biggest financial frauds in US history.

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Ted Cruz blasts ‘mafioso’ threats over Jimmy Kimmel suspension

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Ted Cruz blasts 'mafioso' threats over Jimmy Kimmel suspension

American Senator Ted Cruz has broken ranks with fellow US conservatives and
hit out at talk show host Jimmy Kimmel’s suspension, saying it was “mafioso” behaviour.

Disney-owned ABC has been widely criticised after it pulled the long-standing host of Jimmy Kimmel Live following comments in his show about the alleged gunman charged with right-wing activist Charlie Kirk’s murder.

Kimmel implied the suspect was a Maga Republican, despite the man’s mother telling police he had “started to lean more to the left”.

As a result, Federal Communications Commission chair Brendan Carr threatened Disney and local broadcasters with investigations and regulatory action if they aired Kimmel’s show – which led to dozens of local TV stations affiliated with ABC pulling it.

US President Donald Trump, who appointed Carr, lauded the decision.

But Mr Cruz criticised the threats as “dangerous as hell”.

“I got to say that’s right out of ‘Goodfellas’,” he said, evoking the Martin Scorsese gangster movie. “That’s right out of
a mafioso coming into a bar going, ‘Nice bar you have here.

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“It would be a shame if something happened to it’.”

Senator Ted Cruz. Pic: AP
Image:
Senator Ted Cruz. Pic: AP

Explainer: What did Jimmy Kimmel say about Charlie Kirk?

The senator, a former constitutional lawyer, then adopted a broad mafioso accent to quote Mr Carr’s comments about broadcasters this week: “We can do this the easy way, or we can do this the hard way.”

Mr Trump fired back, telling reporters in the Oval Office on Friday that he disagreed with Mr Cruz – one of the most
powerful Republicans in Congress – and calling Mr Carr “an incredible American patriot with courage.”

Demonstrations against his suspension have sprung up. Pic: AP
Image:
Demonstrations against his suspension have sprung up. Pic: AP

The Texas senator’s remarks are a rare example of a prominent member of the president’s own party publicly
criticising the actions of the administration, highlighting deepening concerns over free-speech rights and Mr Trump’s threatened crackdowns.

Prominent Democrats and civil rights groups condemned the Trump administration’s pressure to punish Kimmel and others who speak negatively of the president.

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US talk show titans speak out

Kimmel’s fellow late-night hosts have rallied around him, as did former US president Barack Obama, who wrote on X: “After years of complaining about cancel culture, the current administration has taken it to a new and dangerous level by routinely threatening regulatory action against media companies unless they muzzle or fire reporters and commentators it doesn’t like.

Barack Obama on Jimmy Kimmel Live in 2016. Pic: Susan Walsh/AP
Image:
Barack Obama on Jimmy Kimmel Live in 2016. Pic: Susan Walsh/AP

“This is precisely the kind of government coercion that the First Amendment was designed to prevent, and media companies need to start standing up rather than capitulating it.”

Conservative activists had been angered by Kimmel’s comments on his show that they were using the assassination to score “political points”.

Right-wing influencer Charlie Kirk was shot dead on 10 September as he took part in a public debate at a college campus in Utah .

Tyler Robinson, 22, was charged with aggravated murder, weapon, and obstruction of justice offences.

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US talk show titans come out fighting after Kimmel cancellation

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US talk show titans come out fighting after Kimmel cancellation

US talk show host Stephen Colbert has condemned the cancellation of fellow late-night star Jimmy Kimmel as a “blatant assault on freedom of speech”, as America’s top late night presenters came out fighting.

He used the opening of Thursday night’s edition of his Late Show to address the pulling of Jimmy Kimmel Live over comments made about the assassination of the right-wing influencer Charlie Kirk.

Kimmel used his show earlier this week to accuse the Trump administration and its allies of “working very hard to capitalise on the murder of Charlie Kirk”, with the president among those to pin it on left-wing extremism.

The move by Disney-owned ABC has been widely criticised, with the network accused of kowtowing to President Donald Trump, who celebrated the decision.

Also airing on Thursday night, Jon Stewart, host of Comedy Central’s Daily Show, appeared in a garish gold set, in parody of Mr Trump’s redesign of the White House, to tell viewers the episode would be “another fun, hilarious, administration-compliant show”.

Stewart, playing the role of an over-the-top, politically obsequious TV host under authoritarian rule, lavished praise on the president and satirised his criticism of US cities and his deployment of the National Guard to fight crime.

“Coming to you tonight from the real […] crime-ridden cesspool that is New York City. It is a tremendous disaster like no-one’s ever seen before. Someone’s National Guard should invade this place, am I right?” he said.

He then introduced his guest – Maria Ressa, a journalist and author of the book How To Stand Up To A Dictator.

Jon Stewart. Pic: Associated Press
Image:
Jon Stewart. Pic: Associated Press

Over at The Tonight Show, Jimmy Fallon told his audience he was “not sure what was going on” but that Kimmel is “a decent funny and loving guy and I hope he comes back”.

Fallon then promised viewers that in spite of people being “worried that we won’t keep saying what we want to say or that we will be censored”, he was going to cover the president’s recent trip to the UK “just like I normally would”.

He was then replaced by a voiceover describing Mr Trump as “incredibly handsome” and “making America great again”.

Jimmy Fallon on Thursday's Tonight Show. Pic: The Tonight Show X
Image:
Jimmy Fallon on Thursday’s Tonight Show. Pic: The Tonight Show X

Seth Meyers also joined the fray.

“Donald Trump is on his way back from a trip to the UK,” he said at the top of his show Late Night, “while back here at home, his administration is pursuing a crackdown on free speech… and completely unrelated, I just wanted to say that I have always admired and respected Mr Trump.

“I have always believed he was a visionary, an innovator, a great president, and an even better golfer.”

Kimmel’s removal from the show he has hosted for two decades led to criticism that free speech was under attack.

But speaking on his visit to Britain, Donald Trump claimed he was suspended “because he had bad ratings”.

It came after fellow late-night host Colbert saw his programme cancelled earlier this year, which fans claimed was also down to his criticism of Mr Trump, who has since railed against Kimmel, Meyers, and Fallon.

He has posted on Truth Social that they should all be cancelled.

Jimmy Kimmel hosting last year's Oscars. Pic: AP
Image:
Jimmy Kimmel hosting last year’s Oscars. Pic: AP

Figures from both the worlds of entertainment and politics lined up to lament ABC’s removal of Kimmel.

Chat show doyenne David Letterman said people should not be fired just because they don’t “suck up” to what he called “an authoritarian” president.

During an appearance at The Atlantic Festival 2025 in New York on Thursday night, he added: “It’s no good. It’s silly. It’s ridiculous.

“I feel bad about this, because we all see where see this is going, correct? It’s managed media.”

Barack Obama on Jimmy Kimmel Live in 2016. Pic: Susan Walsh/AP
Image:
Barack Obama on Jimmy Kimmel Live in 2016. Pic: Susan Walsh/AP

Former US president Barack Obama wrote on X: “After years of complaining about cancel culture, the current administration has taken it to a new and dangerous level by routinely threatening regulatory action against media companies unless they muzzle or fire reporters and commentators it doesn’t like.

“This is precisely the kind of government coercion that the First Amendment was designed to prevent, and media companies need to start standing up rather than capitulating it.”

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Trump and Starmer quizzed on Epstein

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Trump and Starmer quizzed on Epstein

👉 Follow Trump100 on your podcast app 👈

Starmer and Trump meet at Chequers. A news conference with enormous consequences, not just for the US and UK, but for the global world order.

To match the occasion – a special mashup episode of Electoral Dysfunction and Trump100. Mark Stone is joined by Beth Rigby, Harriet Harman and Ruth Davidson.

As Team Trump leaves British soil… is Starmer better off now than he was at the start of the week?

Or is he still on the ropes?

You can also watch all episodes on our YouTube channel.

Email us on trump100@sky.uk with your comments and questions.

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