In a recent court ruling that has sent shockwaves through the cryptocurrency community, Sam Bankman-Fried, the former head of the now-defunct FTX exchange, was handed a 25-year prison term. This sentence comes after his involvement in fraudulent activities that contributed to one of the most significant downturns in the crypto market, affecting numerous investors.
Sam Bankman-Fried Condemned for FTX Collapse
During the opening moments of the trial, Bankman-Fried voiced his remorse over the circumstances leading to the exchange’s downfall. Despite his expression of regret, the court proceeded with a harsh sentence, reflecting the severity of the impact his actions had on the exchange’s creditors.
The sentence imposed on Bankman-Fried also includes a substantial financial repercussion, mandating the return of over $11 billion in assets. The court’s decision is seen as a significant step in holding key figures accountable for their roles in the crypto industry’s instability.
The ruling judge has recommended Bankman-Fried serve his sentence in a Bay Area prison close to his family. This news has only added to the distress felt by stakeholders and token holders within the FTX community.
Market Reacts to Verdict Impacting FTT Token Value
Immediately following the court’s announcement, the value of FTX’s native token, FTT, plummeted to $2 after a 10% fall within 24 hours. This price drop has alarmed investors, many of whom are rapidly unloading their FTT holdings, as evidenced by a 110% spike in trading volume, surpassing $54 million. The token’s peak price of $85 seems a distant memory, with its current value struggling to maintain stability.