KEY POINTS
Sam Bankman-Fried, the co-founder and former CEO of FTX and Alameda Research, has been sentenced to 25 years by Judge Lewis Kaplan of the Southern District of New York (SDNY).
Meanwhile, former FTX executives, including Zixiao Gary Wang and Caroline Ellison, have agreed to settle a class action lawsuit filed by FTX investors, offering insights into the company’s demise.
The Court’s Verdict
Considering the gravity of the fraudulent activities perpetrated, the Department of Justice had recommended a 40- to 50-year sentence. In contrast, Bankman-Fried’s defense team had proposed a more lenient sentence of 5 to 7 years, underscoring his expressed remorse and arguing for his comparatively minor involvement in the scheme.
The court however issued a 25-year imprisonment sentence, marking the end of an exhaustive five-week trial that delved into the events leading to the dramatic collapse of FTX and Alameda Research in November 2022. These companies were once towering giants and forces to reckon with in the global cryptocurrency exchange market.
Class Action Lawsuit By Former FTX Investors
Meanwhile, FTX’s former investors filed a class action lawsuit against the company, claiming they had been misled by the platform. A settlement agreement was reached, with the former executives of FTX agreeing to pay approximately $1.36 million.
The agreement disclosed the involvement of FTX’s former executives, including Zixiao Gary Wang, the co-founder; Nishad Singh, the former head of engineering, and Caroline Ellison, the former CEO of Alameda Research. These former executives have committed to cooperate and provide crucial information about the allegations.
While none of these former executives have admitted liability, their contributions will play a big role in the class action. The settlements and the insights to be provided by the former executives will be a big step toward achieving closure for the aggrieved investors and elucidating the truth behind the downfall of FTX.
