Written by Ethan Pezeshki

FTX founder Sam Bankman-Fried was sentenced on Thursday, March 28, to 25 years in prison for securities fraud conspiracy. This resulted in the downfall of his cryptocurrency exchange and hedge fund, Alameda Research. Bankman-Fried was also ordered to forfeit $11 billion as part of his punishment in Manhattan federal court. Allegedly swindling over $10 billion from unsuspecting customers, SBF was involved in one of the largest financial frauds in US history. While Bankman-Fried expressed remorse, he also suggested that the losses were due to mismanagement. Prosecutors argued that the collapse resulted from fraud.

FTX was a prominent cryptocurrency exchange and crypto hedge fund valued at $32 billion before its 2022 bankruptcy. It operated primarily through its mobile app and website, providing users with the opportunity to invest in various cryptocurrencies. The exchange had attracted a user base of one million people, including many politicians, celebrities, and business leaders.

This incident further reveals the risks of investing in the cryptocurrency market.

Above, Sam Bankman-Fried