F1 News: Ex-Mercedes Sponsor CEO Handed 25-Year Prison Sentence For Fraud

Sam Bankman-Fried, the former CEO of the crypto exchange FTX, has been given a 25-year prison sentence for fraud.

Sam Bankman-Fried, the former CEO of the crypto exchange FTX, which previously sponsored the Mercedes F1 team, has been sentenced to a 25-year prison term. This verdict comes in the aftermath of fraudulent practices that led to the company's abrupt downfall.

Key Takeaways:

• Sam Bankman-Fried, once associated with the Mercedes Formula 1 team through FTX, has been sentenced to 25 years in prison.
• Bankman-Fried was found guilty of multiple fraud charges, including money laundering conspiracy, leading to a loss of around $10 billion of customer funds.
• The sentencing took place in Manhattan federal court, where Bankman-Fried was also ordered to give up $11 billion in assets.

Oct 23, 2022; Austin, Texas, USA; Mercedes AMG Petronas Motorsport driver George Russell (63) of

Jerome Miron-USA TODAY Sports

Sam Bankman-Fried, the CEO of the former Mercedes sponsor FTX, received a 25-year prison sentence. This outcome follows a series of fraudulent acts that culminated in the collapse of FTX, once a visible presence in the F1 paddock through its partnership with Mercedes initiated in 2021. The partnership, however, was dissolved ahead of the 2022 Brazilian Grand Prix amid FTX's bankruptcy filings.

Central to Bankman-Fried's conviction were the charges of fraud and conspiracy to launder money, with the former CEO being implicated in the misappropriation of approximately $10 billion of customer funds. The gravity of these charges was underscored during the sentencing at Manhattan federal court, where Judge Lewis Kaplan delivered a stern verdict.

“There is a risk that this man will be in position to do something very bad in the future. And it’s not a trivial risk at all.

"[Bankman-Fried never offered] a word of remorse for the commission of terrible crimes.”

Mercedes acted promptly by suspending their partnership with FTX when the scrutiny began, stating:

“As a first step, we have suspended our partnership agreement with FTX.

“This means the company will no longer appear on our race car and other branded assets from this weekend.”