Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, has lodged an appeal against his fraud conviction and 25-year prison sentence, which he received for his involvement in one of the largest financial frauds in American history.
What Happened: Bankman-Fried filed his appeal a few weeks after a New York judge sentenced him. The ex-billionaire and crypto leader was found guilty of misappropriating investor funds to support his lavish lifestyle, reported The Hill.
The appeal will be reviewed by the 2nd U.S. Circuit Court of Appeals in Manhattan. U.S. District Judge Lewis Kaplan, who sentenced Bankman-Fried on March 28, expressed apprehension about the potential for future misconduct by the founder.
Although prosecutors suggested a sentence of 40 to 50 years, Bankman-Fried’s lawyers advocated for a term of 63 to 78 months. They argued that the maximum sentence of 100 years would be “barbaric”, considering that investors were expected to recover their investments.
Bankman-Fried was convicted in 2023 on federal fraud and conspiracy charges related to the collapse of his crypto company in late 2022. His downfall began after FTX collapsed and he was arrested in the Bahamas in December 2022.
See Also: Crypto Traders Share 7 Tips ‘How To Find 100X Meme Coins Without Relying On Luck’
Why It Matters: The sentencing of Bankman-Fried sparked a wave of reactions from the cryptocurrency community. The sentencing was a dramatic conclusion to a months-long saga, with Judge Kaplan pointing to ambition and political manipulation as factors in his decision.
In an effort to compensate creditors, FTX is liquidating Bankman-Fried’s extensive real estate holdings in the Bahamas, valued at a staggering $222 million, following his sentencing for his involvement in an $8 billion fraud.
FTX was once a leading cryptocurrency platform that facilitated trading in spot markets for coins such as Bitcoin BTC/USD and Ethereum ETH/USD along with derivatives, options, and leveraged products
Read Next: What’s Going On With ‘Dogecoin Killer’ Shiba Inu?
Engineered by Benzinga Neuro, Edited by Shivdeep Dhaliwal
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
