SBF Claims He Didn’t Think His Actions at FTX Were Illegal

From behind bars, Samuel Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is expressing profound remorse about the actions that resulted in his 25-year prison sentence handed down last week.

In an exclusive interview with ABC News conducted via email, the 32-year-old Bankman-Fried, known as SBF, said the implosion of FTX and the fraud he perpetrated weigh heavily on his mind each day.

“It’s excruciating to see them waiting, day after day,” he said of FTX’s customers still awaiting repayment.

“I never thought that what I was doing was illegal.”

SBF

Sam Bankman-Fried Rise, Fall, And Sentencing

Once a celebrity in the crypto world worth an estimated $26 billion, Sam Bankman-Fried’s dramatic downfall began in November 2022 when FTX suddenly became insolvent.

Prosecutors alleged SBF misappropriated $8 billion from FTX customer funds for his own use, including illegal political donations and risky investment bets through his hedge fund Alameda Research.

After being convicted on seven counts of fraud and conspiracy last fall, SBF received a 25-year sentence from U.S. District Judge Lewis Kaplan. The judge excoriated SBF for lying on the stand and displaying a complete “lack of remorse.”

However, the fallen founder claims he is indeed remorseful, saying

“I’ve heard and seen the despair, frustration and sense of betrayal from thousands of customers; they deserve to be paid in full, at current price.”

Sam Bankman-Fried

He expressed anguish at having “thrown away” the life’s work of FTX employees and undermining the charities he founded.

Read Also: Sam Bankman-Fried Sentenced to 25 Years for 8 Billion Dollar FTX Fraud

Allegations of Mishandling and Possible Appeal

SBF alleges there were sufficient assets to make FTX customers whole if the company remained operational. He faults the new FTX leadership and their lawyers at Sullivan & Cromwell for needlessly tanking the exchange’s value by filing for bankruptcy instead of restarting it.

The law firm pushed back, with Judge Kaplan affirming SBF shamelessly “pursued a media strategy of blaming lawyers” rather than taking responsibility. SBF claims Sullivan & Cromwell improperly collaborated with prosecutors, asserting he was denied a fair trial as a result.

His defense is gearing up to appeal the conviction and sentence later this year based on allegations that key evidence was barred from court and testimony misstated facts.

While SBF has “lost everything” and sees no path to regain his wealth or rebuild his reputation, the once high-flying entrepreneur says his focus now is on finding ways to make amends, despite his “deeply frustrating” confinement.