Today is the 45th anniversary of Three Mile Island's partial meltdown, and the day after Sam Bankman-Fried's total meltdown:
Sam Bankman-Fried, the former cryptocurrency mogul who was convicted of fraud, was sentenced to 25 years in prison on Thursday, capping an extraordinary saga that upended the multi-trillion-dollar crypto industry and became a cautionary tale of greed and hubris.
Mr. Bankman-Fried’s sentence was shorter than the 40 to 50 years that federal prosecutors had recommended, but above the six-and-a-half-year sentence requested by the defense lawyers. A federal probation officer had recommended 100 years, just under the maximum possible penalty of 110 years behind bars.
His sentence ranks as one of the longest imposed on a white-collar defendant in recent years. Bernie Madoff, who orchestrated a notorious Ponzi scheme that unraveled during the 2008 financial crisis, received a 150-year sentence in 2009. He was in his 70s at the time and died 12 years later. Elizabeth Holmes, who was convicted of defrauding investors in her blood-testing startup, Theranos, was sentenced to 11 years and three months in 2022.
Molly White had some thoughts on this earlier in the week:
Bankman-Fried [tried] to argue that no money has been lost thanks to his fraud, mostly based on the argument that the bankruptcy team has estimated that creditors will receive a "100% recovery". In a later letter, he even submits that he tried to help the bankruptcy team recover assets. Incredibly, he includes in his evidence to support this claim the screenshots of his January 2023 message to Ryne Miller — despite the fact that Judge Kaplan already determined that his arguments that the message was just an attempt at being helpful "d[id] not appear, on a preliminary basis, to be a persuasive reading". Kaplan later decided that the same message was one of two instances in which Bankman-Fried had tried to tamper with a witness, and rescinded his pre-trial release.
Bankman-Fried's arguments regarding losses were rebutted by the prosecutors in several different ways and, somewhat awkwardly, also rebutted by the very same bankruptcy team he quoted to support his claims that customers would be reimbursed at 100%.
[Prosecutors did] not seem optimistic about Bankman-Fried's future prospects, writing that "A sentence that resulted in the release of the defendant while he is at a working age would leave open the very real possibility that he perpetrates again."
If he serves the minimum time possible, he'll get out in his mid-50s.