Key Insights
SBF was sentenced to 25 years without parole.
Prosecutors wanted 50 years sentencing.
The holdings of FTX doubled to $9 billion since Nov 2022.
Courts forfeited $11 billion from SBF.
Most rallied crypto was Solana and the most beated was FTT token.
Sam Bankman-Fried (SBF) was sentenced to 25 years of federal prison in the Manhattan Federal Court, New York. Prosecutors were demanding a more severe sentence of 40-50 years.
Judge Kaplan who ruled in the case, said that SBF might be stored in a medium-security or low-security prison. The judge also ordered the forfeiture of $11.02 billion and ordered that the funds be used to repay the victims of the fraud.
Commenting on the nature of the crime, Judge Kaplan said that SBF did not just pose a trivial risk and he could be in a position to do something very bad in the future.
There is no possibility of parole in SBF's sentencing because it was essentially a US federal crime. However, he can still reduce his sentencing with good behaviour.
Mitchell Epner told CNN that SBF may serve as little as 12.5 years if he gets all the jailhouse credits available to him. In Federal Prisons, inmates can get as much as 54 days of jail credits per year.
The first major reaction came from his parents who said they felt devastated after the sentencing. Joe Bankman and Barbara Fried said they will continue to fight for their son.
US Attorney Damian Williams said "SBF orchestrated one of the largest financial frauds in history, stealing over $8 billion of his customers' money. His deliberate and ongoing lies demonstrated a brazen disregard for customers."
People in the crypto community have drawn comparisons between the sentencing of Sam Bankman-Fried and that of darknet site founder Ross Ulbricht, who was sentenced to double life in prison in 2015. Ulbricht created Silk Road, a website that facilitated the buying and selling of almost anything
The top cryptocurrencies in the portfolio of Sam Bankman-Fried and Alameda Research include Solana, FTX Token, SushiSwap, DODO, and Frontier.
When SBF filed for bankruptcy, FTX's holdings were valued around $4.9 billion. With the recent explosion in Solana's price, this could have been $9 billion. Other cryptocurrencies had little to no changes in value except FTT which crashed from $80 to $2.
We advise you to avoid any trading in FTT token as it's reserves may be entirely liquidated by the courts to repay FTX customers.
The best gainers in the portfolio were Solana and Aptos. The worst losers were FTT Token, Serum Finance(SRM) and Maps.me Token (MAPS).
In the case of Solana and Aptos, the volume and price of these two cryptocurrencies has risen to an extent that it might be able to handle the selloff, if any, without capitulating.
However, we also anticipate that in order to recover money from SBF's Sol holdings, the courts and the state would not sell them at once. Rather, a staggered sales seems more possible.
Therfore, we suggest to trade with precaution in these two cryptocurrencies.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
