Today’s news that FTX co-founder Gary Wang has been sentenced to time served and supervised release for his role in the multi-billion dollar FTX fraud scheme means that only three of the five executives involved will serve any time in prison for their part in the theft.

Wang pleaded guilty to four counts — wire fraud, conspiracy to commit wire fraud, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud — and was sentenced on Wednesday to time served and three years of supervised release on each.

The longest sentence was reserved for the mastermind of the theft, FTX founder and majority owner of Alameda Research Sam Bankman-Fried. He was sentenced to 25 years in prison.

The second-longest sentence was handed to FTX Digital Markets Chief Executive Ryan Salame, who was sentenced to seven and a half years for his role in using customer funds for influence-purchasing political donations. 

Read more: FTX sues Binance and CZ for ‘fraudulent tweets’ and $1.8B clawback

Caroline Ellison, the co-chief executive of Alameda Research and on-again-off-again romantic partner to Bankman-Fried, was sentenced to two years for charges of fraud and conspiracy, receiving substantial leniency thanks to her cooperation with prosecutors and law enforcement.

Wang, along with FTX’s Director of Engineering Nishad Singh, avoided prison time in their sentences, reflecting both their cooperation with the prosecution and their somewhat more peripheral role in the massive fraud. 

In total, this inner circle of FTX and Alameda executives have been sentenced to a total of 34.5 years in prison.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post CHART: FTX and Alameda execs get a total of 34.5 years in prison appeared first on Protos.

The latest FTX-related sentencing saw Caroline Ellison, the former co-CEO of Alameda Research, handed two years behind bars for her role in the exchange’s spectacular collapse. Ellison is expected to be in prison by November 7.

Ellison’s sentence was so lenient thanks to her lending the investigation her full cooperation. Indeed, the judge presiding over the case noted that he hadn’t seen a cooperator “quite like Ms. Ellison.”

However, he also made it clear that due to the severity of the case, remorse and cooperation aren’t a complete “get out of jail free card.” 

She had pleaded guilty to seven counts of fraud and conspiracy and became the third individual involved in FTX’s crimes to be jailed. 

Here’s a chart of every indicted FTX and Alameda official sentenced, or waiting to be sentenced. 

Read more: Which FTX and Alameda executives are going to prison and when?

Collectively, Sam Bankman-Fried, Ryan Salame, and Ellison are serving 34.5 years or 414 months. Gary Wang and Nishad Singh are due to be sentenced in the coming months having both testified against Bankman-Fried.

Wang, a former CTO at FTX and close friend of Bankman-Fried, cooperated with prosecutors and pleaded guilty to four charges including wire fraud and conspiracy to commit securities fraud.

Singh was FTX’s director of engineering and also cooperated with prosecutors. He pleaded guilty to six charges, including conspiracy to commit money laundering and make unlawful political contributions.

Both have stated that they hope to avoid jail time for their crimes. A whole raft of other individuals, including Bankman-Fried’s parents, lawyers believed to have known about criminal activity, and other execs, have also not been indicted.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post CHART: Everyone sentenced from FTX and Alameda appeared first on Protos.

Caroline Ellison, the former co-Chief Executive (CEO) of Alameda Research, has been sentenced to two years in prison for her role in the approximately $8 billion stolen from FTX customers.

The 29-year-old pleaded guilty to seven counts of fraud and conspiracy in the lead-up to former FTX chief Sam Bankman-Fried’s criminal trial. Despite facing a maximum 110 years, her lawyers have argued that Ellison’s key testimony for the prosecution should have resulted in no prison time at all.

Ellison’s prison sentence is far less than her ex-flame Bankman-Fried, who received 25 years behind bars. US District Judge Lewis Kaplan explained that Ellison has been particularly cooperative, stating, “I’ve seen a lot of cooperators in 30 years. I’ve never seen one quite like Ms. Ellison,” though he made sure to acknowledge her role in the fraud.

Read more: Executive texts claim Deltec moved customer funds from FTX to Alameda

This level of cooperation was acknowledged by the prosecutors, who wrote in their sentencing submission that “the Government cannot think of another cooperating witness in recent history who has received a greater level of attention and harassment” and that despite this fact, she “steadfastly remained candid and dedicated to telling the truth—as embarrassing as it often was for her—and in assisting with bringing the most culpable party to justice.” 

The former Alameda chief has also been cooperating with the ongoing bankruptcy, providing significant support to its recovery efforts.

Two FTX executives, Gary Wang and Nishad Singh, are also scheduled to be sentenced later this year after pleading guilty to related crimes. Additionally, Ryan Salame, another FTX and Alameda Research executive, will be reporting to prison next month for his over seven-year long sentence.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel. Quotes in bold are our emphasis.

The post Caroline Ellison sentenced to two years for FTX-Alameda fraud appeared first on Protos.

American rapper Sean ‘Diddy’ Combs and the disgraced crypto mogul Sam Bankman-Fried (SBF) are reportedly sharing the same unit at a Brooklyn prison.

Combs, a.k.a. ‘Diddy,’ was jailed last week at the Brooklyn Metropolitan Detention Center (MDC), which has been home to Bankman-Fried since he was sentenced to 25 years behind bars in April.

According to the New York Times, the two are housed in the same unit.  

Combs was accused of sex trafficking by US authorities who allege he drugged and abused victims during so-called ‘Freak Offs.’ Combs has pleaded not guilty to the alleged “decades-long pattern of physical and sexual violence.”

Mango Markets exploiter Avraham Eisenberg is also being held at MDC Brooklyn.

Read more: Which FTX and Alameda executives are going to prison and when?

Bankman-Fried was handed his lengthy sentence after he was found guilty of conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud, and conspiracy to commit money laundering.

Combs was denied bail twice after attempting to argue against the “horrific” jail conditions. Indeed, the Brooklyn prison has been described as “tougher than Guantánamo Bay,” while Bankman-Fried’s lawyers said it lacks basic amenities, has no recreational prison yard, and subjects inmates to 24/7 fluorescent lighting.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Diddy joins SBF, Avraham Eisenberg in ‘horrific’ Brooklyn prison appeared first on Protos.

The bankruptcy and criminal proceedings relating to once-$32 billion crypto exchange FTX are almost over. Founder Sam Bankman-Fried is now imprisoned at Brooklyn Metropolitan Detention Center, serving a 25-year sentence, while fellow executives Caroline Ellison, Nishad Singh, and Gary Wang have pleaded guilty to federal crimes.

Former FTX Digital Markets CEO Ryan Salame could also enter prison as early as October 13, although he has oral arguments set for September 12 that could change that.

The financial aspect of the bankruptcy proceedings is also close to being wrapped up. With about $16 billion in recovered funds, FTX customers can expect to be repaid ‘in full, with interest.’ However, there is one, major caveat: Their repayments are based on a bitcoin price of $16,871.

Obviously, many victims have objected to this plan. Creditors blamed bankruptcy executives for “breathlessly touting what they claim to be a full recovery with interest” that is “nothing of the sort.”

Countering, the clean-up team led by John J. Ray III explained that when FTX entered bankruptcy, it actually held just 0.1% of bitcoin and 1.2% of the ether that customers saw in their balances. “We cannot pay one creditor more without taking it from another creditor,” Ray explained.

Read more: FTX estate takes another victim 19 months after bankruptcy

The big October bankruptcy plan hearing

In any case, these disagreements make an upcoming court date very important. On October 7, the US Bankruptcy Court for the District of Delaware will host an FTX bankruptcy plan confirmation hearing.

On that day, the court will consider confirmation of FTX’s proposed Chapter 11 Plan of Reorganization and its associated Disclosure Statement Plan. If the court confirms that Chapter 11 bankruptcy plan, its confirmation will allow FTX to repay over 98% of customers and unsecured creditors “in full with interest,” using a USD calculation for all crypto asset prices as of November 11, 2022.

Those repayments would likely occur after one of three further ‘omnibus hearings’ in 2024. These are catch-all discussions for consolidating the various claimants into uniform classes for repayment. Omnibus hearings on the docket are October 22, November 20, and December 12.

In summary, if the District of Delaware confirms the Chapter 11 plan on October 7, payments to victims could certainly go out before the end of the year.

If any FTX customer has not submitted a claim to the bankruptcy estate, the deadline has already passed. Customers must have submitted all of their paperwork by September 29, 2023.

Approximately 98% of customers submitted claims worth less than $50,000, and they can expect to receive approximately 118% of the USD value of their claim — again, based on November 11, 2022 crypto prices.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post When will FTX customers get their money back? appeared first on Protos.

FTX and Alameda Research’s antics devastated the cryptocurrency ecosystem nearly two years ago when it was revealed by CoinDesk reporting that Alameda execs had used FTX as a piggy bank for their trading activities. 

Over the last two years, several of those executives have been charged with various crimes, and some have already been sentenced to prison, among them former FTX CEO and Alameda founder, Sam Bankman-Fried. 

Sam Bankman-Fried

Bankman-Fried was found guilty by a jury of his peers of conspiracy to commit wire fraud, wire fraud, conspiracy to commit securities fraud, conspiracy to commit commodities fraud, and conspiracy to commit money laundering. 

He had previously been charged with other counts that have been dismissed, including conspiracy to operate an unlicensed money-transmitting business, conspiracy to defraud the Federal Election Commission (FEC), conspiracy to violate the anti-bribery provisions of the Foreign Corrupt Practices Act, conspiracy to commit bank fraud, conspiracy to commit fraud related to derivatives, and other charges.

Bankman-Fried has been sentenced to 25 years in prison, and according to the Bureau of Prisons website, he is currently held at Brooklyn MDC. 

Read more: Binance founder Changpeng Zhao sentenced to 4 months in prison

Ryan Salame

Ryan Salame, the former CEO of FTX DM, the Bahamas-based entity, pleaded guilty to charges of conspiracy to operate an unlicensed money transmission business and conspiracy to make unlawful political contributions.

Salame was originally meant to surrender on August 29, but after his face was damaged by a dog attack, he was given a 45-day continuance, pushing his surrender to October 13. 

Salame has repeatedly taken to X (formerly Twitter) since his guilty plea to try to proclaim his innocence, the guilt of lawyers, and his intention to reveal new information against the advice of his lawyers; so far, he has yet to present the information he claims will exonerate him of the crimes he pleaded guilty to.

Caroline Ellison

Caroline Ellison was the co-CEO of Alameda Research and the on-again, off-again sexual and romantic partner of Bankman-Fried. She cooperated with the investigation into Bankman-Fried and has pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering.

She’s also been cooperating in the ongoing bankruptcy case, providing messages and testimony that have contributed to the various lawsuits filed by the debtors-in-possession. 

Ellison’s testimony was some of the most important for the prosecution, helping provide evidence of Bankman-Fried’s knowledge, both of the problems and of the legal impropriety. 

Her sentencing has yet to be scheduled. 

Read more: Has CZ followed a Solana news account while in prison?

Gary Wang

Zixiao ‘Gary’ Wang was a close friend of Bankman-Fried as well as co-founder and CTO of FTX. 

He has been cooperating with the prosecution of Bankman-Fried and pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, and conspiracy to commit securities fraud.

Wang testified that Alameda Research was given special privileges on FTX as early as 2019 and noted that these enabled it to end up with a negative balance on the exchange almost immediately.

His sentencing has been scheduled for November 20. 

Nishad Singh

Nishad Singh was a co-founder and director of engineering for FTX.

He’s been cooperating with Bankman-Fried’s prosecution and pleaded guilty to conspiracy to commit wire fraud, wire fraud, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering, and conspiracy to make unlawful political contributions.

Singh testified about how various loans and donations were structured, including a loan that was nominally to him but never hit his bank account. 

His sentencing has been scheduled for October 30.

Not yet indicted

Several of the individuals and executives who were closely connected to FTX and Alameda have so far avoided prosecution.

These include Bankman-Fried’s parents, Joseph Bankman and Barbara Fried, who have been implicated in various parts of the operation of the firms in testimony and in a lawsuit filed by the debtors-in-possession of FTX. They allegedly received large payments, luxury real estate, and meetings with celebrities.

Constance Wang, the former chief operating officer of FTX, agreed to cooperate in Bankman-Fried’s prosecution, according to Michael Lewis in his book Going Infinite. Messages from Wang show a willingness to try to keep FTX running, even after it became obvious that funds were missing, telling Ryne Miller that “I don’t want to stop trying yet” on November 9, 2022. Wang has since joined Sino Global Capital, a fund that FTX invested in, which has since rebranded as Ryze Labs. 

Claire Watanabe was romantically involved with Singh and was also an FTX senior executive working in business development. Watanabe and Singh lived in an apartment with Bankman-Fried, Wang, and Ellison and was one of the executives who made large political donations, maximizing her donation to financial fraudster and likely Ponzi schemer George Santos. 

Ramnik Arora was the former head of product for FTX. Arora was also one of the executives who made large political donations, joining Watanabe in making the largest possible donation to Santos. Arora has since founded venture capital fund Original Capital. 

Sam Trabucco, the former co-CEO of Alameda Research who resigned months before the collapse, has mostly maintained a low profile. He briefly popped his head above water to write a letter in support of his close friend Salame, but other than that, has kept mostly to himself. 

Former lawyers, including Daniel Friedberg and Can Sun, have been named by various executives and lawsuits as being possibly aware of or connected to some of the criminal activities in these entities. Friedberg has been the target of a lawsuit by FTX debtors in possession who have alleged he helped pay off whistleblowers, approved loans to executives, and helped create North Dimension and North Wireless Dimension.

Friedberg has maintained that he was not aware of the issues that led to the FTX collapse, and Law360 reported that he was cooperating with the prosecution of Bankman-Fried. 

Can Sun, an FTX lawyer who worked with Friedberg at Fenwick, testified that Bankman-Fried misrepresented FTX’s financials to him. Bankman-Fried supposedly asked Sun to provide “a legal justification” for why billions in customer funds were missing, and Sun responded by providing various theoretical explanations that could have, but did not actually, explain it.

Sun testified under a grant of immunity and allegedly worked with Justin Sun and Tron on the attempted acquisition of TrueUSD. 

His LinkedIn states that he now works on legal and compliance for Backpack, a wallet founded by former Alameda developer Armani Ferrante. 

Salame has focused some of his X ire on Backpack, alleging that “they chose a lawyer who was at the absolute core of causing an insane amount of customer funds being stolen” and wondering aloud “how many executives at Backpack are taking out inter-company loans because the lawyer advised them to do that instead of selling off their own crypto. Hypothetical question of course.”

Read more: Ryan Salame is whitewashing his role at FTX and Alameda

Adam Yedidia, a former FTX developer and friend of Bankman-Fried, testified in Bankman-Fried’s trial that he became aware of a many-billion-dollar shortfall several months before FTX declared bankruptcy. He testified under the protection of an immunity order.

Two executives have been sentenced to prison, two others have their sentencing scheduled, one other pleaded guilty, and many others are still looking for opportunities to salvage their careers and reputations.

Update 2024-08-09 14:20 UTC: Corrected Joseph Bankman’s name, he was previously incorrectly identified as Joshua.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Which FTX and Alameda executives are going to prison and when? appeared first on Protos.

While Protos, along with other media outlets, was quick to point out that the Donald Trump-era law the ‘First Step Act’ could be a road to early release for Sam Bankman-Fried, Ryan Salame, and other first-time, nonviolent offenders, it turns out that the law is less about ‘the letter of the law’ than it is about a judge’s discretion.

Indeed, if we take a look at a previous example of a massive financial fraudster attempting to use the act to get early release, it seems incredibly unlikely that Bankman-Fried or Salame can expect to have a significant amount of time shaved off their sentences.

What is the First Step Act?

Though it’s been repeatedly discussed, it’s worth going over some of the minutiae of the First Step Act. The main point of contention regarding the act is that inmates can, possibly, get out of prison in half of the time they’ve been sentenced to. However, it’s important to note that there are many caveats.

First of all, while a former federal prosecutor told CNN that Bankman-Fried could possibly shave 12.5 years off his sentence, it’s simply not clear that’s true. Buried within the details of the bill is a section that describes ineligible prisoners, specifically “Section 1030(a)(1), relating to fraud and related activity in connection with computers.”

Bankman-Fried was found guilty of wire fraud, securities fraud, and commodities fraud, all seemingly revolving around computers and his trading.

This doesn’t mean that he can’t take any time off his sentence whatsoever: federal prisoners are still eligible to take off over 50 days a year if they involve themselves with programs to reduce recidivism and don’t cause problems while incarcerated. In this sense, Bankman-Fried will likely be able to knock a few years off of his 25-year sentence.

No matter how you look at it, a major factor will be whether or not a judge believes at some point that Bankman-Fried has repented for his actions, served enough time in prison, and is no longer a threat to society. It remains to be seen if or when this metric will be met.

Read more: Ryan Salame is whitewashing his role at FTX and Alameda

Bad news for Bankman-Fried and Salame

On that note, the outlook for both felons seems less than optimistic. Bankman-Fried is guilty of one of the largest frauds in history and Salame, as he’s stated on X (formerly Twitter) himself, is charged with the “largest case of campaign finance fraud in American history.” These are prime examples of when individual cases can be used to prove a point to the public at large.

Similar to Bankman-Fried, Samuel Israel III led a massive financial fraud, bilking investors out of $450 million in the late 1990s. After serving 11 years of a 22-year sentence, Israel attempted to utilize the First Step Act to get early release in 2019.

Unfortunately for him, this request was denied, with the judge saying “It would make a mockery of the sentencing statute if this financial fraudster, who ruined the lives and finances of hundreds of people while living the high life of an ostensibly successful hedge fund manager, were to have his sentence reduced.”

With that in mind, it’s difficult to imagine that either Bankman-Fried or Salame would see a dramatic reduction in their sentences.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post The First Step Act may not apply to SBF or Ryan Salame appeared first on Protos.

Disgraced FTX founder Sam Bankman-Fried and perpetrator of the 2022 Mango Markets exploit Avraham Eisenberg are once again sharing the same prison. It’s unclear at this stage if the two are ‘bunk buddies.’

Prison records show that Bankman-Fried was returned to the Metropolitan Detention Center (MDC) in Brooklyn on June 4. He was previously held here before being transferred to the Federal Transfer Center in Oklahoma City on May 23. He was then moved to a prison in Pennsylvania on his way back to New York. 

Meanwhile, Eisenberg was moved to the MDC in November while awaiting trial and so shared the prison for some time with Bankman-Fried. Now, following the former FTX chief’s brief tenure in Oklahoma, the pair are back serving time under the same roof. 

Read more: SBF is target for assault and extortion in prison claims fellow inmate

The Brooklyn prison, which was once described as ‘tougher than Guantánamo Bay,’ has received less than stellar reviews. Indeed, Bankman-Fried’s lawyers described it as having slow internet, dirty living quarters, and a poor cafeteria. The prison also reportedly lacks heating and air conditioning, doesn’t feature a recreational prison yard, and is lit with fluorescent lighting 24/7.

Eisenberg has remained in the MDC since April 18 when he was found guilty of defrauding Mango Markets out of $110 million through the price manipulation of its perpetual futures contracts. Eisenberg is to be sentenced on July 29 where he faces maximum sentences of 10 years and 20 years for his charges. 

Bankman-Fried, who was sentenced to 25 years in April, is currently appealing his conviction. According to Bloomberg, the move back to Brooklyn was likely done to appease Judge Lewis Kaplan who requested that he remain in the city “until his appeal has been fully briefed to facilitate access to appellate counsel.”

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Crypto felons SBF and Avi Eisenberg reunited in infamous NY prison appeared first on Protos.

The FTX debtors in possession have announced a new reorganization plan that would result in nearly every single creditor getting recovery of their full claim amount plus additional interest, according to court documents. 

Additionally, the plan would resolve claims from the Internal Revenue Service and the Commodity Futures Trading Commission, and potentially allow for restitution from the Department of Justice fines to be paid to creditors. 

The press release issued by the debtors in possession highlights that most of this recovery has come from ‘proprietary investments held by the Alameda or FTX ventures businesses.’ It’s the sale of those assets that principally drove the recovery, as the press release highlights that FTX held ‘only 0.1% of the bitcoin and only 1.2% of the ethereum’ that it was meant to at bankruptcy. 

Some of these investments have included Alameda’s investment in artificial intelligence firm Anthropic as well as some other investments that have accrued in value.

However, some FTX creditors are less than satisfied with this resolution to the bankruptcy process, feeling entitled to more of the appreciation that their cryptocurrency assets might have benefited from had FTX not been forced to shut down and close withdrawals. 

Read more: Anthropic gamble could save FTX customers from total ruin

The initial claim amounts were fixed in dollars when FTX declared bankruptcy in November 2022. At the time, crypto was far less valuable, with bitcoin worth less than $20,000.

This means that even with the additional interest the claimants will receive, it will still be substantially less than it might have been had financial criminal Sam Bankman-Fried not misappropriated billions of dollars from the exchange.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post When is full recovery not a full recovery? FTX appeared first on Protos.

While some celebrated the 25-year sentence handed down to multi-billion dollar fraudster Sam Bankman-Fried, others suggested it was too harsh a punishment for a non-violent first-time offender.

Whatever your view, it’s safe to say there was a collective sigh of relief from almost everyone involved when the crypto trial of the century came to a close.

However, the sentence comes with some caveats and opportunities and it’s worth diving into exactly what we can expect to happen next.

Appeals

SBF has already made it clear that he doesn’t only believe the appeals process will grant him his freedom — he’s willing to stake his comfort and safety on it. As pointed out by Protos contributor David Z. Morris on X (formerly Twitter), SBF put forward a request to stay at New York’s infamous Metropolitan Detention Center to be closer to his legal team rather than being transferred to a prison to be nearer to his parents in California.

The strategy is a bold one: less than 9% of appeals succeed in federal court, according to the Federal Judiciary. But that won’t dissuade Bankman-Fried.

A lawyer familiar with the case said, “There’s zero percent chance of success [on this appeal],” adding, “There was nothing off about his trial, his sentence was a downward departure.”

In regards to what the appeals team hopes to present, the lawyer said that the legal team was likely to hone in on internet restrictions not allowing for appropriate time to prepare pre-trial, but “that will be rejected.”

Adding to the likelihood of this rejection is SBF having his bail revoked, providing journal entries of Caroline Ellison to members of the media, and having his internet access increased while behind bars.

“Appellate courts almost never overturn jury verdicts,” they said.

Read more: SBF is target for assault and extortion in prison claims fellow inmate

After initial appeals

There’s little legal wiggle room for SBF. He may present specific arguments in the coming years, but the odds of any of them being legally viable are extraordinarily low.

In the meantime, it’s worth pointing out that Bankman-Fried has already spent nearly a year behind bars — time that will be credited to him, taking about nine months off his 25-year sentence. Outside of this, as referenced by CNN, he’s likely to serve only half the time he’s convicted of behind bars. The rest will most probably be served in either a halfway house or the home of a relative.

As many following the case understood prior to sentencing, violent federal criminals are unable to take more than 15% off of their sentence for good behavior, however, a law passed in 2018 by Donald Trump — called the First Step Act — allows nonviolent federal offenders to get released after half of their sentence has been served.

It’s more than likely that SBF qualifies for this.

But then what for Bankman-Fried?

It’s fair to say that any amount of time in a federal penitentiary is tough but SBF is looking at over a decade in a medium-security prison — and that’s if he doesn’t do inappropriate interviews with the media, sneak electronics into his cell, and otherwise behave erratically.

Regardless, once Bankman-Fried does leave the confines of a medium-security prison for the confines of his parents’ Stanford home, he’s still on the hook for the $11 billion that’s owed to customers, creditors, and investors from FTX. His bank accounts, electronic devices, and future plans are sure to be monitored routinely by federal agents, many looking for any opportunity to catch him breaking the rules of his allotted time outside prison.

There is always the possibility of a redemption arc. Take the examples of Jordan Belfort and Michael Milkin, two criminal fraudsters who have both been quite successful since their respective releases from prison.

Read more: First prison photo of ‘gangster’ Sam Bankman-Fried revealed

Of course, there’s little doubt that there will be some appetite for speaking appearances, book contracts, and consulting in some capacity for SBF when he leaves prison. The real question is whether every cent he earns (outside of basic living expenses) will be clawed back for those he hurt and if the SBF story will still be as toxic and hard to swallow as a decade previous, especially for those in the finance and cryptocurrency industries.

Justice is difficult to define, but for now, at least, the founder and CEO of one of the largest frauds in history remains behind bars, with more than a decade in stark living conditions, thinking about what he’s done.

Got a tip? Send us an email or ProtonMail. For more informed news, follow us on X, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

The post Sam Bankman-Fried is sentenced to 25 years — but now what? appeared first on Protos.