FTX founder Sam Bankman-Fried was sentenced to 25 years in prison by Judge Lewis A. Kaplan on Thursday.
Prosecutors sought a 40- to 50-year sentence for the disgraced crypto king. Bankman-Fried's defense team will appeal the conviction and sentencing.
His parents, Barbara and Joseph Bankman-Fried, were present in the courtroom.
Bankman-Fried, 32, was found guilty in November on two counts of wire fraud and five counts of conspiracy following the collapse of his crypto empire FTX in November 2022, which has been compared to Enron. The exchange had merged assets with sister hedge fund Alameda Research amid cash problems, leading waves of customers to withdraw funds. Bankman-Fried was indicted the next month.
FTX founder Sam Bankman-Fried testifies on the witness stand in federal court in New York, New York on Oct. 30, 2023. (Jane Rosenberg)
By comparison, disgraced Theranos founder Elizabeth Holmes is serving an 11-year sentence, but faced as much as 80 years in prison. Bernie Madoff was sentenced to 150 years and died in prison.
EXCLUSIVE: Elizabeth Holmes, seen taking a walk in the prison yard at Bryon Federal Prison Camp, Texas on her second day of being an inmate there. (EXCLUSIVE Picture by: SplashNews.com Splash News and Pictures USA: 310-525-5808 UK: 020 8126 1009 eamteam@shutterstock.com World Rights)
Bankman-Fried, who capitalized on a rise in bitcoin and at one point accumulated an estimated $26 billion fortune, is also expected to be ordered to pay restitution.
Bitcoin, which accounted for much of Bankman-Fried's net worth, fell as low as $15,000 and has since rebounded to the $70,000-plus level, following the approval of a bitcoin ETF by the Securities and Exchange Commission earlier this year.
It's unclear how the rebound in crypto, if at all, will play out in providing restitution to his victims.