On Thursday morning, a Manhattan federal judge handed Sam Bankman-Fried a 25 year prison sentence for his criminal involvement in fraud and conspiracy at FTX.
But how many years is the disgraced crypto founder likely to actually serve in a federal prison?
The answer is fairly easy to determine, given the rigid codes and calculations used by the Federal Bureau of Prisons to evaluate prisoners, incentivize them, and manage their sentences.
Because Bankman-Fried received a sentence longer than one year, he will likely receive an automatic 15% sentence reduction, Christopher Zoukis, a federal prison consultant, told Decrypt. Pieces of that 3.75 year reduction can then be added back on to the FTX founder’s prison stint if he gets into any serious trouble while incarcerated.
FTX Founder Sam Bankman-Fried Sentenced to 25 Years in Prison
Sam Bankman-Fried, the co-founder and former CEO of the cryptocurrency exchange FTX, was sentenced on Thursday to 25 years in prison. The hearing puts an end to a months-long sentencing process that began shortly after the Department of Justice successfully argued in court that the one-time crypto wunderkind had used FTX as his personal piggy bank. Bankman-Fried siphoned more than $8 billion in customer funds to fund moonshot venture investments, paid sponsorships with celebrity athletes like To...
Beyond that 15% reduction, however, Bankman-Fried is almost certain to spend most of the remaining 85% of his sentence—a hefty 21.25 years—in federal custody, per Zoukis.
There are only a handful of exceptions and credit programs that could shorten the former billionaire’s stint in a federal prison. And even in a best-case scenario, such reductions could shave off only a year or two of time—no more.
Other American prison systems, like California’s, for example, can remove huge chunks of felons’ ordered prison time—half of a sentence, or more—based on good behavior and other factors.
“The federal prison system doesn't do that,” Zoukis said.
Where Will Sam Bankman-Fried Be Sent to Prison? The Options Are Bleak
Sam Bankman-Fried shouldn’t expect to get Adderall or good vegetarian cooking where he’s headed, according to a federal prison system expert. He’ll be lucky if he’s able to avoid gang violence, as he’s most likely headed to a medium-security prison. On Thursday, a Manhattan judge sentenced the disgraced FTX founder to 25 years in federal prison—a length of time that has key implications for what prison he will now be sent to. According to Christopher Zoukis, a federal prison consultant, precede...
If Bankman-Fried complies with the First Step Act, a relatively new law that further incentivizes good behavior in prison, he could earn up to a year of additional sentence reduction. If he demonstrates a verifiable substance abuse disorder, and treats it through a residential prison program, he could shave off another year.
But that’s pretty much it. Even in the best-case scenario; even if Bankman-Fried can prove he’s a full-on stimulant addict and seeks treatment; even if he’s granted all sentence reductions available to him under federal law; even if he acts impeccably in prison for years, teaching a whole generation of inmates about the wonderful world of investing, he’s still locked in for over 19 years in a federal prison.
And in all likelihood, that penitentiary—which it’s looking like he’s set to call home at least until he turns 51 years old—is set to be a pretty rough one.
Edited by Ryan Ozawa and Andrew Hayward
