Mar 28, 2024 - Economy

SBF gets 25

Photo illustration of Sam Bankman-Fried with a gavel and red circles

Photo illustration: Sarah Grillo/Axios. Photo: Yuki Iwamura/Bloomberg via Getty Images

A federal judge slapped Sam Bankman-Fried with a 25-year sentence today for his role in bankrupting cryptocurrency platform FTX and defrauding its customers, completing his downfall from quirky billionaire philanthropist to felon.

Why it matters: Judge Lewis Kaplan chose a much harsher sentence for the disgraced crypto mogul than the defense's request of five to seven years, Axios Crypto's Brady Dale writes.

  • In pre-sentencing comments, Kaplan ripped the disgraced entrepreneur for his "apparent lack of any remorse."
  • "He knew it was wrong, he knew it was criminal, he regrets he made a very bad bet about the likelihood of getting caught," Kaplan said.

The big picture: FTX's bankruptcy is seen as the climax of the crypto crash that wiped out more than $2 trillion in global wealth. The rout deepened as the terra stablecoin blew up, which exposed the house of cards that Three Arrows Capital had become.

💭 Brady's thought bubble: SBF believed he could play with other people's money, make lots more, pay them all back, and do all sorts of good — such as preventing the next pandemic.

  • Instead, the company got out over its skis, stopped processing customer withdrawals, declared bankruptcy, fired hundreds of employees, and gave thousands of users two very stressful years.

Go deeper: FTX timeline

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This story was an excerpt from Axios Closer, a recap on the day's biggest business stories.

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