In a recent development, the co-founder and CEO of FTX, Benjamin Bankman-Fried, aged 32, received a 25-year prison sentence on March 28, 2024. The US Attorney for the Southern District of New York emphasised that this sentence aims to deter financial crimes and send a clear message that justice will swiftly address such transgressions.

Drawing parallels with Bernie Madoff, a notorious figure in financial fraud history, Bankman-Fried stands accused of embezzling billions of dollars from FTX customers and defrauding lenders associated with FTX’s sister company, Alameda Research.

According to sources, Bankman-Fried allegedly transferred approximately $10 billion from FTX to his trading firm, Alameda Research, employing clandestine methods to circumvent detection by accounting systems.

FTX, once regarded as a reputable name in the crypto realm, enjoyed widespread trust among users. However, revelations of potential fraud in November 2022 triggered a mass exodus of depositors, culminating in the company’s bankruptcy. Prior to its downfall, FTX boasted millions of users and garnered support from prominent figures.

Bankman-Fried’s legal woes escalated when he was apprehended on December 12, 2022, on charges including wire fraud, commodities fraud, securities fraud, money laundering, and campaign finance law violations. Subsequently, he was convicted on all counts of fraud on November 2, 2023.