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Sam Bankman-Fried was sentenced to 25 years in prison by a judge on March 28 for stealing $8 billion from customers of the now-bankrupt FTX cryptocurrency exchange he founded, the last step in the former billionaire wunderkind鈥檚 dramatic downfall.

U.S. District Judge Lewis Kaplan handed down the sentence at a Manhattan court hearing after rejecting Mr. Bankman-Fried鈥檚 claim that FTX customers did not actually lose money and finding that he lied during his trial testimony. A jury found Mr. Bankman-Fried guilty on Nov. 2 on seven fraud and conspiracy counts stemming from FTX鈥檚 2022 collapse in what prosecutors have called one of the biggest financial frauds in U.S. history.

Mr. Kaplan said Mr. Bankman-Fried has shown no remorse.

鈥淗e knew it was wrong,鈥� Mr. Kaplan said. 鈥淗e knew it was criminal. He regrets that he made a very bad bet about the likelihood of getting caught. But he is not going to admit a thing, as is his right.鈥�

Mr. Bankman-Fried, wearing a beige short-sleeve jail T-shirt, acknowledged during 20 minutes of remarks to the judge that FTX customers had suffered and he offered an apology to his former FTX colleagues 鈥� but did not admit criminal wrongdoing.

He has vowed to appeal his conviction and sentence.

Mr. Bankman-Fried stood with his hands clasped before him as Mr. Kaplan read the sentence. He then spoke with his defense lawyer Marc Mukasey briefly before being led out of the courtroom by members of the U.S. Marshals Service.

The sentence marked the culmination of Mr. Bankman-Fried鈥檚 plunge from an ultra-wealthy entrepreneur and major political donor to the biggest trophy to date in a crackdown by U.S. authorities on malfeasance in cryptocurrency markets.

鈥淭here are serious consequences for defrauding customers and investors,鈥� U.S. Attorney General Merrick Garland said in a statement. 鈥淎nyone who believes they can hide their financial crimes behind wealth and power, or behind a shiny new thing they claim no one else is smart enough to understand, should think twice.鈥�

Mr. Kaplan found that FTX customers lost $8 billion, FTX鈥檚 equity investors lost $1.7 billion, and that lenders to the Alameda Research hedge fund Bankman-Fried founded lost $1.3 billion. He imposed an $11 billion forfeiture order and authorized the government to repay victims with seized assets.

Federal prosecutors had sought a sentence of 40 to 50 years. Mr. Mukasey had argued for a sentence of less than 5-1/4 years.

鈥淚鈥檓 sorry for that鈥�

Addressing the judge, Mr. Bankman-Fried said, 鈥淐ustomers have been suffering ... I didn鈥檛 at all mean to minimize that. I also think that鈥檚 something that was missing from what I鈥檝e said over the course of this process, and I鈥檓 sorry for that.鈥�

Referring to his FTX colleagues, Mr. Bankman-Fried added, 鈥淭hey put a lot of themselves into it, and I threw that all away. It haunts me every day.鈥�

Three former close associates testified as prosecution witnesses that Mr. Bankman-Fried had directed them to use FTX customer funds to plug losses at Alameda Research. All three have pleaded guilty to fraud.

Mr. Kaplan said Mr. Bankman-Fried lied when testified that he did not know Alameda Research had spent customer deposits taken from FTX.

Mr. Mukasey sought to distance Mr. Bankman-Fried from notorious fraudsters like Bernie Madoff, saying he was 鈥渘ot a ruthless financial serial killer鈥� but rather an 鈥渁wkward math nerd鈥� who tried to get customers their money back after FTX鈥檚 collapse.

鈥淪am Bankman-Fried doesn鈥檛 make decisions with malice in his heart,鈥� Mr. Mukasey added. 鈥淗e makes decisions with math in his head.鈥�

Mr. Bankman-Fried鈥檚 eyes turned red as he appeared to hold back tears while Mr. Mukasey spoke.

His parents, Stanford University law professors Joseph Bankman and Barbara Fried, attended the sentencing. Mr. Bankman held a green umbrella as they exited the courthouse into a rainy New York afternoon, their arms around each other.

鈥淲e are heartbroken and will continue to fight for our son,鈥� they said in a statement.

Power and influence

A Massachusetts Institute of Technology graduate, Mr. Bankman-Fried rode a boom in the values of bitcoin and other digital assets to a net worth of $26 billion, according to Forbes magazine, before he turned 30.

Mr. Bankman-Fried became known for his mop of unkempt curly hair and commitment to a movement called effective altruism, which encourages talented young people to focus on earning money and giving it away to worthy causes.

He was one of the biggest contributors to Democratic candidates and causes before the 2022 U.S. midterm elections. Mr. Kaplan pointed to trial evidence showing Mr. Bankman-Fried also donated to Republicans through 鈥渟traw鈥� donors to hide his involvement.

The judge called Mr. Bankman-Fried鈥檚 efforts to present himself as a 鈥済ood guy鈥� an act, adding, 鈥淭he goal was power and influence.鈥�

Mr. Bankman-Fried has been detained at the Metropolitan Detention Center in Brooklyn since August 2023, when Mr. Kaplan revoked his bail after finding he likely tampered with witnesses at least twice. Mr. Kaplan said he would recommend Mr. Bankman-Fried be sent to a prison close to San Francisco.

This story was reported by Reuters.