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

Shockwaves rippled through the crypto world last night when Sam Bankman-Fried was given a 25-year prison sentence for stealing billions of dollars from customers of the now-defunct FTX.

The sentence — one of the longest ever for white-collar crime — ends the dramatic downfall of the former crypto prodigy who worked with everyone from Bill Clinton to Gisele Bundchen.

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

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 crypto king had shown a “lack of genuine remorse” for his crimes.

But experts say his conviction sends a message to British regulators.

Kumardev Chatterjee, a consultant at Interpol, said: “The extent of his 25-year sentence – typically imposed on murderers in Britain – will be a sharp and much-needed wake-up call for the crypto industry.”

He added: ‘This will undoubtedly make regulators and other financial watchdogs more eager to ensure that the wild days of crypto are behind us in this new bull-run phase, to ensure a smoother and more predictable market. ‘

Walid Koudmani, a crypto analyst, said the conviction would likely have a positive impact “instilling confidence that there are repercussions for crimes and underhanded behavior.”

Crypto is largely unregulated in Britain, with the Financial Conduct Authority repeatedly warning investors that they should be prepared to lose all their money.

But yesterday’s legal decision also comes just weeks before the former boss of rival crypto exchange Binance is convicted in US courts of money laundering.

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

As part of that plea, Zhao – commonly known as CZ – stepped down as CEO and agreed to pay a £40 million fine.

Guidelines suggest a maximum sentence of 18 months in prison.

Caroline Mauron, co-founder of digital asset firm Orbit Markets, said. ‘Individual responsibility has become a household name in the crypto industry.

“Expect the founders and senior management of crypto companies around the world to scrutinize their operations and prioritize compliance.”