As we know, Sam Bankman-Fried (SBF) faced the penalty of spending 25 years behind bars. The majority of people called 25 years of the period very short against the crime he committed with FTX clients, but legal experts believe it is a fair punishment.
Sam Bankman-Fried (SBF) is an infamous crypto entrepreneur, responsible for the creation of the FTX crypto exchange. Despite the success of the FTX crypto exchange, as the second-ranked crypto exchange, he misused FTX customers’ funds in large quantities for personal benefits. In November 2022, FTX collapsed heavily.
Bankman-Fried was sentenced to 25 years by Federal Judge Lewis Kaplan in Manhattan. Prosecutors labeled the FTX saga one of the largest financial frauds in American history.
According to reports, the FTX bankruptcy leaders are in talks with some crypto companies to sell all of the FTX’s operations, assets and holding funds to compensate the former FTX customers.
The majority of former FTX clients are not happy with the 25 year prison sentence for SBF as they feel it is a very short period for him.
To answer such questions regarding 25 years in prison for SBF, Samson Enzer spoke about this issue with the CryptoNews website and explained why this period is enough for him.
Enzer is a partner at Wall Street law firm Cahill Gordon & Reindel LLP.
Enzer explained that while the sentence is below sentencing guidelines, it strikes a balance between deterrence and compassion given the defendant’s youth. He also emphasizes that the criminal trial met legal standards.
Phillip Alexeev, Chief Growth Officer at payment solutions provider CrossFi, also shared his thoughts, calling Bankman-Fried’s punishment fair.
He took into account the magnitude of the crime and comparable sentences for similar financial crimes. He suggests the penalty reflects the number of individuals affected, the value of the assets involved and the broader implications for cryptocurrency regulation.
Overall, both Enzer and Alexeev consider the sentence justified, albeit for different reasons, in the context of the complexity and implications of the case.
Also read: New EU rules could ban non-decentralized Defi protocols in 2025