Sam Bankman-Fried's 25 year sentence: Fair or not?

It’s over. The crazy saga of Sam Bankman-Fried, the onetime crypto billionaire, came to an end this week as a federal judge sentenced him to 25 years in prison for fraud. For the crypto community, this should have been a moment of closure, helping to turn the page on its biggest scandal. Yet, judging by many of the reactions on the social media platform still known as Crypto Twitter, Thursday’s sentencing was a travesty of justice.

Start with Fox Business host Charles Payne, who tweeted, “Hell, no,” in response to the question of whether 25 years was enough. This led GOP Senate candidate John Deaton to endorse Payne’s comment and say Bankman-Fried should have gotten 50 years instead. While they were no doubt pandering to their right-wing followers—many of whom are quick to blast as lenient any sentence that doesn’t involve the electric chair—Payne and Deaton echoed many others who complained Bankman-Fried got off easy.

Some of this grousing came from the fact Bankman-Fried would likely be able to shave off as much as a third of his sentence for good behavior—meaning he might serve more like 16 years. Others expressed outrage that, while Bankman-Fried will be able to walk free one day, another famous criminal tied to Bitcoin is doing life. That would be Ross Ulbricht, a.k.a. Dread Pirate Roberts, who got a life sentence in 2015 for running Silk Road, the notorious online marketplace where you could use Bitcoin to buy everything from heroin to hit men. While Ulbricht’s sentence may have been unduly harsh, it’s worth noting that, unlike Bankman-Fried, he indirectly was responsible for young people OD’ing.

Another chorus of complaints over Bankman-Fried’s 25-year term came from the kookier corners of social media, where people claimed that, because of his family’s close ties to Democratic politicians, he is sure to be pardoned. If you like conspiracy theories, that’s a good one, but it’s also ridiculous. Meanwhile, it was hard to find anyone who thought the sentence was too harsh—unless you count Bankman-Fried’s parents and legal team, who claimed the fraudster who liked penthouses and private jets was “a beautiful puzzle … unconcerned with material possessions.” Right.

Plenty of people seem to think Bankman-Fried’s sentence was unfair, but that’s typical for most high-profile criminal trials where everyone has an opinion but few have a nuanced understanding of the criminal justice system. In this case, the judge more or less got it right. A 25-year prison sentence is no slap on the wrist and will cost Bankman-Fried many of the best years of his life, and means he is unlikely to hug some of his loved ones ever again. It also sends a message that crypto fraud is a serious crime.

A quick programming note: I will be off next week, but you will be in good hands with Leo Schwartz and Niamh Rowe until I return on April 8. Have a great weekend.

Jeff John Roberts
[email protected]
@jeffjohnroberts

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