The cryptocurrency exchange FTX, which suddenly went bankrupt in November 2022, caused a major collapse in the market and investors suffered huge losses.
While FTX's bankruptcy had a shocking effect on the market, its founder Sam Bankman Fried was arrested. SBF, who has been detained since then, appeared before the judge again today regarding the charges against him.
According to information reported by Inner City Press, at the SBF hearing, Manhattan judge Lewis Kaplan stated that Sam Bankman-Fried lied to him several times during the case.
At that point, the judge said SBF lied when it claimed it had “no knowledge” that hedge fund Alameda was using FTX customer deposits until the fall of 2022.
Sam Bankman-Fried again said he was “sad” about what happened at today's hearing.
Here are the highlights of what Judge Lewis Kaplan said about SBF's defense:
“I reject the defense's claim regarding the loss, both in terms of law and facts.
The claim that customers and creditors will be paid in full is misleading.
SBF's crimes included the defendant SBF taking money from FTX customers to whom it had no right to do so.
A thief who takes what he steals to Las Vegas and successfully places a bet is not entitled to a sentence reduction, even if he pays back.
“We estimate that investors lost $1.7 billion, lenders lost $1.3 billion, and customers lost $8 billion following FTX's bankruptcy.”