Disgraced crypto tycoon Sam Bankman-Fried sentenced to 25 years in prison for fraud

Shockwaves were sent through the cryptocurrency world last night when Sam Bankman-Fried received a 25-year prison sentence for stealing billions of dollars from customers of the now-defunct FTX.

The sentence, one of the longest ever imposed for white-collar crimes, ends the dramatic fall of the one-time cryptocurrency wunderkind who rubbed shoulders with everyone from Bill Clinton to Gisele Bundchen.

Bankman-Fried, 32, was found guilty of seven counts of fraud and money laundering after scamming £8bn from users of his FTX crypto exchange.

He spent it on his lavish lifestyle, properties, risky investments and political donations.

And during his sentencing hearing yesterday, Judge Lewis Kaplan said the former cryptocurrency king had shown a “lack of real remorse” for his crimes.

But experts have said his conviction sent a message to UK regulators.

Kumardev Chatterjee, an advisor to Interpol, said: “The magnitude of his 25-year sentence, which is normally imposed on murderers in the UK, will be a sharp and much-needed wake-up call for the crypto industry.”

He added: “This will no doubt make regulators and other financial watchdogs more eager to ensure that the wild days of cryptocurrencies are behind us in this new bull phase, to ensure a more fluid and predictable market.”

Walid Koudmani, a cryptanalyst, said the conviction would likely have a positive impact by “inspiring confidence that there are repercussions for crimes and dishonest behavior.”

Cryptocurrencies are largely unregulated in the UK, with the Financial Conduct Authority repeatedly warning investors that they must be prepared to lose all their money.

But yesterday’s legal decision also comes just weeks before the former head of rival crypto exchange Binance is to be sentenced in US courts on a money laundering charge.

Changpeng Zhao pleaded guilty in November to failing to maintain an effective anti-money laundering program at the world’s largest cryptocurrency exchange.

As part of that statement, Zhao – widely known as CZ – resigned as chief executive and agreed to pay a £40m fine.

The guidelines suggest a maximum sentence of 18 months in prison.

Said Caroline Mauron, co-founder of digital asset firm Orbit Markets. ‘Individual responsibility has arrived in the crypto industry.

“Hopefully founders and senior management of crypto companies around the world will take a hard look at their operations and prioritize compliance even more.”