The former boss of one of the world’s biggest cryptocurrency exchanges has been criticised after he was charged with defrauding investors out of $1.8bn (£1.5bn).
Sam Bankman-Fried, the founder of FTX, was charged by the US Securities and Exchange Commission (SEC).
John Ray, who was named Chief Executive of FTX after Bankman-Fried stepped down and the company filed for bankruptcy on 11 November, criticised the founder’s leadership and explained what led to the collapse of FTX.
Giving evidence in a congressional hearing in Washington, Mr Ray said there was “virtually no distinction” between the operations of FTX and Alameda Research – Bankman-Fried’s first business.
According to the SEC complaint, Bankman-Fried diverted customer funds to Alameda, without telling it.
Mr Ray said the FTX group’s collapse appears to stem from “absolute concentration of control in the hands of a small group of grossly inexperienced, non-sophisticated individuals.”
He added that there was “literally no record-keeping whatsoever” and said employees would communicate invoicing and expenses on Slack.
Congressman Brad Sherman also raised concerns about crypto and said: “My fear is that we’ll view Sam Bankman-Fried as just one big snake in a crypto garden of Eden. The fact is crypto is a garden of snakes. From the outside crypto looks like a non-fungible token…But in reality, the hope of crypto is to be a currency to compete with the US dollar.”
Image: The value of FTX’s FTT token has collapsed over the past month. Pic: CoinMarketCap
Bankman-Fried was arrested in the Bahamasafter authorities there received formal notice that separate criminal charges had been filed against him in the US.
The funds amassed at Alameda were allegedly used to make undisclosed venture investments, lavish property purchases, and large political donations.
Founder built a ‘house of cards on a foundation of deception’
“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC chair Gary Gensler.
He has been charged with eight counts, including conspiracy to commit money laundering.
Bankman-Fried is also charged with counts tied to wire and securities fraud, as well as conspiracy to defraud the United States and violate campaign finance laws.
Image: John Ray at a US House Financial Services Committee hearing
How did we get here?
Regarding the separate charges which led to his arrest in the Bahamas, those are expected to be revealed later.
Bankman-Fried has the right to contest his extradition to face them.
The charges came a day before he was due to testify before America’s House Financial Services Committee.
Bankman-Fried has been the focus of investigations by both US and Bahamian authorities since the collapse of FTX, which ran out of money in the crypto equivalent of a bank run.
It had been the world’s second-largest cryptocurrency exchange, but was left teetering on the brink of insolvency in early November when larger rival exchange Binance dramatically withdrew from a non-binding bailout offer.
Binance also indicated it would sell the $529m (£430m) of FTT, the native token of FTX, on its books.
It led other investors to rush to withdraw funds, but FTX could not meet all the requests, as it apparently used its customers’ deposits to cover bad bets at Alameda.
During a string of recent media appearances, Bankman-Fried has insisted he did not “knowingly” misuse customers’ funds and has denied defrauding investors.
However, he has admitted that “clearly I didn’t do a good job” at running FTX.
The Ukrainian president said the meeting ahead of Pope Francis’s funeral could end up being “historic.” Hours later, Mr Trump questioned Vladimir Putin’s appetite for peace in a Truth Social post.
Please use Chrome browser for a more accessible video player
2:49
From Saturday: Trump meets Zelenskyy at funeral
Speaking before boarding Air Force One on Sunday, Mr Trump again said the meeting went well, and that the Ukrainianleader was “calmer”.
“I think he understands the picture, I think he wants to make a deal,” he said, before turning to Mr Putin and Russia.
“I want him to stop shooting, sit down and sign a deal,” the US president said, adding he was “very disappointed that they did the bombing of those places (including Kyiv, where nine people were killed in a Russian airstrike on Friday) after discussions”.
However, Mr Trump said he thinks Mr Zelenskyy is ready to give up Crimea, which the Ukrainian leader has repeatedly said he would refuse to do.
More on Donald Trump
Related Topics:
He added that “we’ll see what happens in the next few days” and said “don’t talk to me about Crimea, talk to Obama and Biden about Crimea”.
Russia annexed Crimea in 2014, while Barack Obama was president.
Meanwhile, US secretary of state Marco Rubio told Sky’s US partner network NBC News that a peace deal to end the war was “closer in general than they’ve been any time in the last three years, but it’s still not there”.
“If this was an easy war to end, it would have been ended by someone else a long time ago,” he added on the Meet the Press show.
It comes after North Korea confirmed it had deployed troops to fight for Russia, months after Ukraine and Western officials said its forces were in Europe.
State media outlet KCNA reported North Korean soldiers made an “important contribution” to expelling Ukrainian forces from Russian territory, likely to be the Kursk region.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
KCNA said leader Kim Jong Un made the decision to deploy troops to Russia and notified Moscow, and quoted him as saying: “They who fought for justice are all heroes and representatives of the honour of the motherland.”
It also quoted the country’s ruling Workers’ Party as saying the end of the battle to liberate Kursk showed the “highest strategic level of the firm militant friendship” between North Korea and Russia.
Please use Chrome browser for a more accessible video player
1:26
From June 2024: Putin drives Kim around in luxury limo during state visit
The North Korean leader promised at the time “full support and solidarity to the Russian government, army and people in carrying out the special military operation in Ukraine”.
At least 40 people have been killed and several hundred more injured after an explosion and fire at Iran’s largest port, according to state media.
The blast, at the Shahid Rajaei container hub near the southern city of Bandar Abbas, happened on Saturday as Iran held a third round of talks with the US in Oman about Tehran’s nuclear programme.
Shipping containers burned, goods inside were badly damaged and the explosion was so powerful that windows several miles away were shattered, reports said.
Image: Iranian Red Crescent rescuers work at the site of the blast. Pic: Reuters
Please use Chrome browser for a more accessible video player
0:26
The blast at the Shahid Rajaei port happened as Iran and the US met for the third round of negotiations over Tehran’s nuclear program.
Helicopters and aircraft dumped water from the air on the blaze and by Sunday afternoon it was 90% extinguished, the head of Iran’s Red Crescent Society told state media.
Officials said port activities had resumed in unaffected parts of Shahid Rajaei.
Out of the 752 people who had received treatment for their injuries, 190 were still being treated in medical centres on Sunday, according to Iran’s crisis management organisation.
Chemicals at the port were suspected to have worsened the blast, but the exact cause of the explosion was not clear.
More on Iran
Related Topics:
Iran’s defence ministry denied international media reports that the explosion may be connected to the mishandling of solid fuel used for missiles.
The reports were “aligned with enemy psyops [psychological operations]”, according to a ministry spokesperson, who told state TV the blast-hit area did not contain any military cargo.
Image: Firefighters work to extinguish the blaze. Pic: AP
According to the Associated Press, British security company Ambrey said that the port in March received sodium perchlorate, which is used to propel ballistic missiles and the mishandling of which could have led to the explosion.
Follow The World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
The Financial Times previously reported two Iranian vessels had shipped from China enough of the ingredient to propel up to 260 mid-range missiles.
It was reportedly to help Tehran replenish stocks after its missile attacks on Israel in 2024.
Iran’s military has sought to deny the delivery of sodium perchlorate from China.
Iran’s state-run Irna news agency reported on Sunday that Russian President Vladimir Putin deployed several emergency aircraft to Bandar Abbas to provide help.
Anna and Irene have already been queuing for an hour or so, and they know they have a long wait still to come.
“Two hours, three hours, ten hours – what does it matter?” says Irena. “This is about eternity.”
They have come to Rome from Slovenia, Catholics who felt “Papa Francis would have wanted us to be here”.
Image: People take photos of the grave of late Pope Francis inside St. Mary Major Basilica. Pic: AP/Andrew Medichini
Image: A single white rose left on the tomb. Pic: Vatican
And under the sun outside Santa Maria Maggiore, they are awaiting the opportunity to visit his tomb.
Francis, says Irena, “was like a rainbow” who lit up the world. Anna nods along: “We are so happy to be here.”
The Pope’s tomb has become a new source of pilgrimage.
More than 30,000 people came to view it during the first morning after the Pope’s funeral, the queue snaking from the front of the mighty basilica and then up and down across the square at the back.
More on Pope Francis
Related Topics:
Some were curious visitors, others were devout followers – priests and nuns mixing in the queue with tourists and devoted locals.
All of these admired Francis; a very few actually knew him.
Father Alessandro Masseroni is a deacon who came to Rome to train to become a priest. On his phone, he shows me a photo of him and Francis, with the Pope offering words of encouragement.
Image: Father Alessandro Masseroni meeting the Pope
He says: “I had the honour to serve Pope Francis and to talk to him many times and it was a special experience. I understand why he was so loved by all the people – he was simple and direct.
“He was sunny. St Francis was his role model and when I saw the first picture of the Pope’s tomb, the first thing I thought was of the tomb of St Francis of Assisi.
“Pope Francis will leave a legacy – it doesn’t end with his death but will continue.”
Image: People attend the funeral of Pope Francis. Pic: Reuters/Yara Nardi
Please use Chrome browser for a more accessible video player
0:38
Video shows Pope’s tomb
What are your emotions now, as you wait to visit his tomb, I ask. Father Alessandro pauses and smiles.
“Many emotions of course, but mainly, I think… thankfulness.”
That has been a recurring aspect among so many of the people we have met in Rome over the past week – the sense that sadness for Francis’s death is outweighed by the sense that his was a life that should be celebrated.
Volodymyr Borysyak flew in from London on the morning of the Pope’s funeral to make his third pilgrimage to Rome.
Barely had he arrived than his phone was stolen, a crime he responded to by praying for the thief.
Volodymyr is a refugee from western Ukraine who worries that his home country’s plight is being forgotten by some of the world.
Now, the Pope who inspired him has died.
You might imagine that he would be resentful and angry. Instead, he is full of smiles.
Please use Chrome browser for a more accessible video player
7:51
The farewell to Pope Francis
“We are happy to be the pilgrims of the world and this is a special day,” he tells me. “I know the pope used to pray in this basilica so that is why we will stay so long here to visit Santa Maria Maggiore.
“I think Pope Francis was, is and will be the pope for the world, because of the mercy of his heart and his love for everybody.”