Sam Bankman-Fried, the FTX founder convicted over $8-billion crypto fraud, has openly expressed regret over the events that led to his 25-year incarceration. Speaking to ABC News from the confines of the Metropolitan Detention Center in Brooklyn, the former cryptocurrency mogul reflected on the tumultuous journey that culminated in his imprisonment.
"I never thought that what I was doing was illegal," said Bankman-Fried. "But I tried to hold myself to a high standard, and I certainly didn't meet that standard."
17-Month Legal Battle
Bankman-Fried's legal troubles began to unravel in November 2022, when FTX, the cryptocurrency exchange he co-founded and managed, went bankrupt, leaving an $8 billion hole in its wake and its customers in financial disarray. This collapse marked the beginning of a 17-month legal battle that concluded with Bankman-Fried being found guilty of multiple charges, including fraud, conspiracy, and money laundering. His conviction stemmed from allegations of misappropriating customer funds for personal use, political contributions, and investments.
Throughout the weekend, Bankman-Fried communicated his thoughts via email, indicating a period of introspection and remorse. He attributed the downfall of FTX to a series of poor decisions made in 2022, while maintaining that he never intentionally engaged in illegal activities. Despite this, he acknowledged falling short of the ethical standards he set for himself.
"I've heard and seen the despair, frustration and sense of betrayal from thousands of customers; they deserve to be paid in full, at current price."
At his sentencing, US District Judge Lewis Kaplan criticised Bankman-Fried for perjury and evasion during his testimony, noting a lack of expressed remorse for his crimes.
Remorse On Contrary
Contrary to the judge's observations, Bankman-Fried now claims to feel deep remorse, particularly for the impact his actions have had on FTX's customers, employees, and supported charities. He lamented the ongoing suffering of those affected, emphasising his inability to amend the situation from behind bars.
Bankman-Fried also revisited the potential for FTX's recovery had the exchange not ceased operations, suggesting that a different leadership could have facilitated the repayment of debts to customers and investors. He criticised the legal and media handling of his case, particularly highlighting the role of Sullivan & Cromwell, the law firm advising FTX's new management. He argued that their involvement with prosecutors and the media contributed to an unfair trial.
Planning An Appeal
Despite his sentencing, Bankman-Fried's legal team is planning an appeal, citing misrepresentations during the trial and restrictions on evidence and witness testimony. He expressed a sense of loss over his current situation, mourning the inability to contribute positively to society from his current position.
As this saga continues to unfold, the cryptocurrency industry and its observers are left to ponder the implications of Bankman-Fried's downfall for the sector's regulatory future and ethical standards.