Sam Bankman-Fried live updates: 'Crypto King' sentenced to 25 years prison - BBC News
Natalie Sherman and Erin Delmore are reporting from a New York courtroom.
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time. The indicated hours are based on the time zone of the United Kingdom.
Expert Sees 'right Balance' In SBF Sentence
A journalist from BBC World News works in New York City.
Jennifer Taub, a legal professional specializing in white collar crime and a professor at the Western New England University School of Law, believes that the sentence given to the offender is fitting. She emphasizes that white collar crime should not be seen as victimless.
According to her, it's about finding the correct equilibrium between his age and the goal of discouragement. She explains that he will leave prison when he's in his fifties.
According to Taub, Judge Lewis Kaplan is well-informed about the typical prison terms handed out to individuals. Taub highlighted that Elizabeth Holmes, who was found guilty of wire fraud connected to the collapse of Theranos, will be spending slightly more than a decade behind bars.
She observed that the amounts associated with that particular situation were significantly lower than the $8 billion dollars that were lost at FTX.
One more element to take into account is the individual's age.
The speaker stated that a person who is fifty years old would not possess the same remarkable talent and capacity as a wunderkind. Additionally, the judge might have thought that Sam Bankman-Fried had the potential to amend their ways and could no longer have the desire to deceive others.
Inside Court Scenes Revealed In New Sketches
Jane Rosenberg, the artist, was present at the courthouse today to witness the sentencing of Sam Bankman-Fried to 25 years of imprisonment.
Rosenberg's drawings display the courtroom atmosphere, which prohibits camera usage by the media.
Crypto Community Reacts To 25-yr Verdict
The emotions and sentiments prevailing in the world of cryptocurrencies are frequently evaluated based on the fluctuating green line that indicates the worth of Bitcoin.
The value that individuals are ready to spend on bitcoins is viewed as a gauge to assess the well-being of the entire cryptocurrency industry, worth trillions of dollars. Despite the verdict given today, there has been little to no significant change in the upward trend of the industry.
In my opinion, the SBF situation has already been factored into the price.
After the apprehension, the small emerald-colored line experienced a significant plunge and remained low for a considerable amount of time.
However, for unknown reasons, the value of Bitcoin started to increase consistently in 2023. Currently, the value has surged significantly since the beginning of this year.
When SBF was taken into custody, a single bitcoin had a value of roughly $16,000. Currently, these digital coins have skyrocketed in worth to over $70,000, which is due in part to leading financial institutions in the United States funneling vast sums of money into Bitcoin.
Even though there has been drama in the courthouse, the industry is currently thriving and in a better stance than ever before.
On the internet, numerous enthusiasts of cryptocurrency express their desire for a stricter judgement. Nevertheless, they are content with the fact that he will be imprisoned for many years.
At last, they are relieved to bid farewell to SBF, who is notorious for tarnishing the reputation of the industry.
Certainly, drama is always lurking in the world of cryptocurrency. We'll soon witness the courtroom drama surrounding two more prominent businesspeople whose downfall happened concurrently with SBF's case.
Heroin Traffickers Face Longer Prison Terms, Says Former Prosecutor
I am sending this update from the city of New York.
Mitchell Epner, who used to work as a prosecutor for the federal government and now specializes in crimes related to high-level business executives and political figures at the legal firm Rottenberg Lipman Rich, expressed his astonishment that Judge Kaplan only gave Sam Bankman-Fried a sentence of 25 years.
According to him, Judge Kaplan made a ruling that was not in favor of Mr. Bankman-Fried. Basically, the judge disagreed with Mr. Bankman-Fried on almost all the facts. Furthermore, the judge discovered that Mr. Bankman-Fried had committed three forms of perjury, and he was well aware that what he did was morally incorrect.
Despite this, Judge Kaplan decided that a time frame of 25 years was the only duration required to achieve the goals of federal sentencing.
Epner observes that there is a discrepancy in the way non-white collar crimes are punished. He highlights that individuals convicted of trafficking one kilogram of heroin, which is worth less than $30,000 at wholesale, receive longer sentences than Bankman-Fried. Judge Kaplan held Bankman-Fried responsible for approximately $10 billion in losses.
Ex's Testimony Aided Sentencing, Says Judge
One notable point that caught attention in Judge Lewis Kaplan's speech this morning was his clarification of the method used to determine the 25-year term.
The testimony of Caroline Ellison, who used to date Sam Bankman-Fried, had a significant impact on the court decision. Judge Kaplan frequently referenced it to clarify his reasoning. This shows how crucial her testimony was in the outcome of the case.
The magistrate emphasized a few important parts of her statement. One particular point that carried weight was when she discussed SBF's desires, particularly his aspirations in the political arena.
During the trial, the judge referred to Bankman-Fried's past statement of having a slim chance of becoming the president at 5%. According to Kaplan, Bankman-Fried demonstrated similar conduct during his testimony.
During the trial, the judge talked about how Bankman-Fried constantly portrayed himself as a respectable person. The judge referred to an interview the FTX founder participated in, where Bankman-Fried expressed his support for regulatory measures.
Judge Kaplan made a statement, expressing his opinion that the action taken was indeed an act.
"The Perpetual Deception: Consistent And Intentional Lies"
According to Damian Williams, who is the US Attorney in the Southern District of New York, Samuel Bankman-Fried has deliberately planned and executed one of the biggest financial scams ever recorded.
He goes on to mention that Bankman-Fried's continuous dishonesty shows a bold lack of concern for what his customers expect and shows disrespect towards the laws in place.
Williams states that the severity of the offenses committed by him is not just based on the sum of money he stole. It is also determined by the immense damage he caused to his victims, some of whom were left without any savings overnight.
In conclusion, he states that the statement will immobilize Bankman-Fried from engaging in fraudulent activities in the future.
"FTX Client Deems Sentence Fair"
The company owned by Samuel Hapak acted as legal counsel for a group of 200 people who suffered losses amounting to $35 million, when FTX sought protection from creditors under bankruptcy laws.
The Chief Executive Officer (CEO) of Wincent, a company that develops trading software, recently spoke to the World Business Report on BBC World Service. According to him, Sam Bankman-Fried's 25-year imprisonment is just and reasonable.
He states that a quarter of a century is a significant amount of time and he thinks that this is a sensible sign for the industry to improve its performance.
Hapak stated that the customers he serves were "irate and frustrated" following the collapse of FTX.
He says that they thought we were completely incapable, believing that we trusted a deceitful person and that we should have realized this earlier.
According to Hapak's statement to the BBC, Wincent suffered a loss of approximately $70 million, which translates to half of its capital, along with a loss of 25% of its investors.
They came to the conclusion that they no longer had confidence in us and our ability to make sound choices. As a result, they withdrew all the remaining funds they had entrusted to us.
Bankman-Fried Swiftly Exits Court After Sentencing
Sam Bankman-Fried was swiftly escorted out of the courtroom, and it seemed as though he didn't get a chance to communicate with his parents as far as we could see.
Barbara Fried and Joseph Bankman stayed in the courtroom to avoid the large number of journalists. The mother and father of the person who started FTX have been present for almost every moment of the trial and have remained calm until the end.
Judge Rejects SBF's Maximum Security Prison Detention
In simpler terms, Judge Lewis Kaplan suggested that Sam Bankman-Fried shouldn't be sent to a highly secure prison since he didn't see any indication that Bankman-Fried might cause harm to others.
According to Judge Kaplan, SBF's fame, connection to immense riches, and his status as someone with autism would make him especially exposed to harm while serving time in jail.
According to him, it is preferable for the prison to be located in close proximity to the San Francisco Bay Area to facilitate family visits.
Sam Bankman-Fried's Parents Exit Court
We have recently witnessed the departure of Joseph Bankman and Barbara Fried, who happen to be the parents of Sam Bankman-Fried, from the courthouse.
"We'll pause for a moment," Mr. Bankman told the photographers. "I understand that you need to capture our image."
The couple avoids answering queries regarding the duration of their child's imprisonment and simply state that they have no remarks on the matter.
Court Update: What Occurred Today?
According to recent news, Sam Bankman-Fried has been given a jail term of 25 years. In addition, other events took place in the courtroom in New York.
"Judge And SBF's Brief Interaction"
Following the reading of the sentence in court, Judge Kaplan inquired if SBF would prefer to hear the terms.
The individual who is 32 years old responded by stating, "I politely decline."
The duration of the imprisonment is not as high as what the prosecutors wanted (they suggested it should be up to 50 years), yet it is still not the number SBF's legal team expected (they recommended five to 6.5 years).
Sam Bankman-Fried Sentenced To 25 Years In Jail
Sam Bankman-Fried has been given a 25-year prison term.
Please stick around, we will provide you with additional information soon.
SBF Lacks Remorse For 'terrible Crimes', Says Judge
The judge is talking extensively about SBF's aspiration and their absence of regret.
The analysis given by Judge Kaplan is severe, as he states that Bankman-Fried's actions were obviously triggered by a desire to gain political power and influence.
According to him, even though SBF expressed sadness over losing customers, they never apologized or showed any regret for the serious crimes they committed.
He references the well-known interview of SBF from November 2022, where he uttered the phrase "(expletive) regulators".
The blogger mentioned that he frequently revisits the statement made by Caroline Ellison, the ex-partner of SBF. According to her, SBF was ready to leave the fate of the world to a coin toss.
Judge Reviews Case Facts
The case is still being studied by Judge Kaplan who is discussing the information that he will take into consideration while making his ruling.
It's possible that we may soon find out what sentence Sam Bankman-Fried will receive.
What Made Sam Bankman-Fried Popular In Crypto?
Bankman-Fried was a unique individual in the business world - a disheveled influencer on social media who was adored by numerous supporters of cryptocurrency at the grassroots level, as well as a successful business executive who was entrusted with millions by investors.
Frequently, he depicted himself as a humble mathematical master whose concern wasn't enriching himself personally. Despite being a billionaire, he used a beaten-up family sedan and dozed off on a bean bag in his workplace. His aim was to make donations to charitable causes.
Rich investors overlooked his disorganized way of life and tendency to engage in computer gaming during crucial video conferences. They focused on his corporation's financial performance and perceived a lucrative opportunity.
FTX, his cryptocurrency trading platform, became the world's second-largest with a daily trade volume of $10-$15 billion (£7.9 - £11.8bn). To further increase his company's visibility, he lent his business's name to an NBA stadium and secured high-profile endorsements from famous individuals such as NFL quarterback Tom Brady.
Near the conclusion, as the cryptocurrency market plummeted, SBF was the one providing assistance to rescue struggling crypto companies.
When his personal empire crumbled, it came as a surprise to not only business executives but also to individuals who invested small sums of money, resulting in significant financial losses for them.
"Judge Kaplan Speaks Now."
Sam Bankman-Fried has spoken and now the judge is speaking to the court.
He is describing the history of SBF, starting from his upbringing in his family to his studies at a well-known college.
A Judge Receives A Flood Of Paperwork
According to Judge Lewis Kaplan, the number of documents submitted prior to this hearing is akin to a massive influx of snow known as an "avalanche".
Out of the total of 1,500 files, approximately 450 were presented by the defense, while roughly an equal number came from the prosecution.
The judge, Kaplan, mentioned that the range of documents presented by the government did not incorporate the victim impact declarations that were previously provided to the court before today.
Several individuals have been sharing their experiences regarding the economic, psychological, and emotive difficulties they have endured following the downfall of FTX.
A person claimed that Bankman-Fried and his close associates should take responsibility for making their customers whole. Meanwhile, another person suggested that Judge Kaplan should take into account that SBF and his team have been cooperative with those who are suing the company in a collective legal action.
"Bankman-Fried Fails To Apologize"
While speaking in the court, SBF appears to avoid fully accepting responsibility for his deceit and embezzlement.
He speaks of the customers who have been let down by countless individuals. "It has been extremely difficult to observe," he laments.
He informs the judge that his intention was solely to assist when he contacted FTX following the bankruptcy. The judge referred to this communication as evidence of Bankman-Fried's attempt to impede justice.
Although he feels sorry for the individuals who went through hardship, he believes that the explanations behind it haven't been clearly communicated.
Legal experts have forewarned that utterances like these are improbable to be well received by Judge Kaplan during the sentencing hearing today.
The FTX Collapse: A Daily Haunting
Although he spoke in a calm and distinct manner, Sam Bankman-Fried mainly emphasized FTX's ability to reimburse its clients during the period when it went bankrupt.
He addressed the discomfort that he has inflicted upon his past clients and co-workers. He commended Caroline Ellison and Gary Wang, who provided evidence against him during the trial.
Judge Lewis Kaplan hears the remorseful defendant say: "I'm aware that many individuals feel disappointed. They dedicated themselves to creating something truly magnificent, but I ruined it all. The weight of my actions weighs heavily on my conscience and affects me every day."
