Sam Bankman-Fried: Disgraced ‘crypto king’ jailed for 25 years after stealing billions of dollars from FTX customers
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.
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.
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
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.
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.
The suspect who opened fire on two National Guard soldiers just blocks from the White House is an Afghan national who worked with a CIA-backed unit in Afghanistan, according to officials.
He worked with “the US government, including CIA, as a member of a partner force in Kandahar” during the US-led war in the country, CIA director John Ratcliffe has said.
The suspect, who has been pictured for the first time, was wounded in an exchange of gunfire before he was arrested.
He was identified by the Department of Homeland Security as Rahmanullah Lakanwal, 29.
Rahmanullah Lakanwal. Pic: Reuters
Attorney general Pam Bondi said the US government plans to bring terrorism charges against the gunman and seek a sentence of life in prison “at a minimum”.
“A lone gunman opened fire without provocation, ambush style, armed with a .357 Smith & Wesson revolver,” she told reporters.
US Attorney for Washington DC Jeanine Pirro identified the two wounded Guard members as Sarah Beckstrom, 20, and Andrew Wolfe, 24.
She said they had been sworn in as National Guard members fewer than 24 hours before the shooting.
Andrew Wolfe and Sarah Beckstrom. Pic: Reuters
Ms Pirro said the suspect ambushed them while they were patrolling near the White House. He shot one Guardsman who fell and then shot again before firing multiple times at the second Guardsman with the Magnum handgun.
Numerous electronic devices seized from suspect’s home
The suspect “drove his vehicle cross-country from the state of Washington with the intended target of coming to our nation’s capital,” Ms Pirro said.
The FBI searched multiple properties in Washington state and San Diego on Thursday in what officials said was a terrorism probe into the DC shooting.
Investigators seized numerous electronic devices from the suspect’s house in Washington state, including cellphones, laptops, and iPads, FBI director Kash Patel told a news conference.
According to the Department of Homeland Security, Lakanwal entered the US in 2021 under Operation Allies Welcome, a Biden-era program to resettle Afghans who assisted the US during the war and feared reprisals from the Taliban after the withdrawal.
An unnamed relative of the suspect has said that Lakanwal served in the Afghan army for 10 years alongside US Special Forces troops and was stationed in Kandahar for part of that time.
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The relative also said Lakanwal was working for online retail giant Amazon.com the last time they spoke several months ago, according to Sky’s US partner NBC News.
A Trump administration official who spoke on condition of anonymity has said that Lakanwal applied for asylum in December 2024 and was approved on 23 April of this year.
Lakanwal had no known criminal history, the official said.
US President Donald Trump, who was at his resort in Florida at the time of the attack, released a prerecorded video statement late on Wednesday calling the shooting “an act of evil, an act of hatred and an act of terror”.
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Trump has called for every Afghan national who entered the US under Biden to be investigated following the shooting of two National Guard troops.
He said his administration would “re-examine” all Afghans who arrived in the US during the presidency of his predecessor, Joe Biden.
The US Citizenship and Immigration Services agency has said it has halted processing of all immigration requests relating to Afghan nationals indefinitely, “pending further review of security and vetting protocols”.
In the wake of Wednesday’s shooting, Defence Secretary Pete Hegseth said the president requested an additional 500 National Guard troops to bolster the more than 2,000 already deployed in the nation’s capital.
In August, Trump ordered the National Guard to the city to combat rising crime, a move that drew objections from District of Columbia officials who argued in court that it violated local authority.
Two military personnel have been shot near the White House in Washington DC.
A suspect has been taken into custody and the area secured, police said.
The White House was placed into lockdown, while US President Donald Trump is away in Florida.
Mr Trump posted on his Truth Social platform to say the two National Guard members had been “critically wounded”, adding that the “animal” that shot them “is also severely wounded, but regardless, will pay a very steep price”.
Washington DC shooting latest updates
Pics: AP
Both guardsmen were shot in the head, according to Sky’s US partner network, NBC News, quoting an official and a senior official directly briefed on the investigation.
The shooting will be investigated by the FBI as a possible act of terror, two senior US law enforcement officials told NBC.
The suspect, who used a handgun in the attack, has been initially identified as an Afghan national, the officials said.
But investigators are still trying to confirm all of the individual’s details.
West Virginia’s governor initially said both victims were members of his state’s National Guard and had died from their injuries – but later posted to say there were “conflicting reports about the condition of our two Guard members”.
Patrick Morrisey had said: “These brave West Virginians lost their lives in the service of their country.”
Pic: AP
FBI director Kash Patel said two National Guard members were “brazenly attacked in a horrendous act of violence”.
At a news conference he clarified they were in a “critical condition”.
Jeff Carroll, chief of the metropolitan police department in the area, said the attack began at 2.15pm local time (7.15pm in the UK) while National Guard members were on “high visibility patrols in the area”.
He said: “A suspect came around the corner, raised his arm with a firearm and discharged it at the National Guard.
“The National Guard members were… able to – after some back and forth – able to subdue the individual and bring them into custody.”
Washington DC mayor Muriel Bowser called the attack a “targeted shooting”.
Pics: AP
Social media footage showed first responders attempting CPR on one of the soldiers as they treated the other on a pavement covered in glass.
Nearby other officers could be seen restraining an individual on the ground.
Emergency personnel cordon off an area near where the National Guard soldiers were shot. Pics: AP
The scene has been cordoned off by police tape, while agents from the US Secret Service and Bureau of Alcohol, Tobacco, Firearms and Explosives were on the scene, as National Guard troops stood sentry nearby. The FBI was also on the scene, the agency’s director said.
The Joint DC Task Force confirmed it was responding to an incident in the vicinity of the White House.
The DC Police Department posted on X: “Critical Incident: MPD is on the scene of a shooting at 17th and I Street, NW. Please avoid the area.”
In an update, the force said: “The scene is secured. One suspect is in custody.”
White House press secretary Karoline Leavitt said: “The White House is aware and actively monitoring this tragic situation.
“The president has been briefed.”
Mr Trump was at his resort in Palm Beach ahead of the Thanksgiving holiday, while US vice president JD Vance was in Kentucky.
US defence secretary Pete Hegseth said Mr Trump had asked for 500 more troops to be deployed to Washington DC after the shooting.
Flights arriving at Ronald Reagan Washington National Airport were temporarily halted due to its proximity to the scene of the shooting, the US Federal Aviation Administration said.
Hundreds of National Guard members have been patrolling the nation’s capital after Mr Trump issued an emergency order in August, which federalised the local police force and sent in the guard from eight states and the District of Columbia.
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