The sentencing of cryptocurrency wunderkind-turned-convicted-fraudster Sam Bankman-Fried to 25 years in jail, along with the forfeiture of more than US$11 billion (S$14.8 billion), looks like a fair outcome. While not as harsh as the request from prosecutors for as many as 50 years, it should stand as a clear deterrent for aspiring fraudsters both in traditional finance and its decentralised offshoots. And given crypto is still in the midst of a much-needed clean-up, that matters.
To recap, the 32-year-old Bankman-Fried was convicted of fraud, conspiracy and several other offences in 2023 after the spectacular collapse of his crypto exchange FTX revealed a US$8 billion hole of missing customer funds under his watch. The jury was not swayed by the one-time billionaire’s defence that he had fallen victim to a market downturn, largely because the evidence was so overwhelming and his defence so contradictory. His former lieutenants’ testimony was as damning as his own lack of remorse and history of statements like: “F**k regulators”.
Already a subscriber? Log in
Read the full story and more at $9.90/month
Get exclusive reports and insights with more than 500 subscriber-only articles every month
ST One Digital
$9.90/month
No contract
ST app access on 1 mobile device
Unlock these benefits
All subscriber-only content on ST app and straitstimes.com
Easy access any time via ST app on 1 mobile device
E-paper with 2-week archive so you won't miss out on content that matters to you