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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.”

The value of FTX's FTT token has collapsed over the past month. Pic: CoinMarketCap
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The value of FTX’s FTT token has collapsed over the past month. Pic: CoinMarketCap

Bankman-Fried was arrested in the Bahamas after authorities there received formal notice that separate criminal charges had been filed against him in the US.

The 30-year-old, whose net worth peaked at $26bn (£21bn), ran the firm from the island until he stepped down as chief executive last month.

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.

John Ray at a US House Financial Services Committee hearing
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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.

Read more:
Sam Bankman-Fried: What happened at FTX?
How FTX founder went from star-studded £21bn empire to being charged

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.

FILE - The FTX Arena logo is seen where the Miami Heat basketball team plays Nov. 12, 2022, in Miami. The former CEO of the failed cryptocurrency exchange FTX said Wednesday, Nov. 30, that he did not ...knowingly" misuse customers' funds, and claimed he believes his millions of angry customers will eventually be made whole. (AP Photo/Marta Lavandier, File)

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.

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Hamas releases last hostages included in first phase of ceasefire – as hundreds of Palestinian prisoners are freed

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Hamas releases last hostages included in first phase of ceasefire - as hundreds of Palestinian prisoners are freed

Hamas has handed the last four Israeli hostage bodies that were included in the first phase of the ceasefire deal to the Red Cross.

The bodies of four Israeli men have been handed over in exchange for the release of more than 600 Palestinian prisoners.

A Red Cross convoy carrying dozens of released prisoners has been seen leaving Israel’s Ofer prison in the West Bank before arriving in the Palestinian city of Ramallah.

The group got off the bus to cheers from hundreds congregated outside, with some of the released men – clad in green jackets and keffiyehs – hoisted aloft by the crowd.

It was not immediately clear when the next detainees would be released.

Meanwhile, the office of Israeli Prime Minister Benjamin Netanyahu confirmed the country had received the four bodies.

It said in a statement: “The coffins were handed over to the IDF at the Kerem Shalom crossing through Egyptian mediation. An initial identification process has now begun on Israeli territory.

“The families of the abductees are being continuously updated on the situation and will be given an official notification at the end of the full identification process.

“The public is asked to respect the families’ privacy and refrain from spreading rumours and information that is not official and well-founded. We will continue to update with reliable information in the future.”

The handover would complete both sides’ obligations under the Gaza ceasefire’s first phase, during which Hamas agreed to return 33 hostages, including eight bodies, in exchange for nearly 2,000 Palestinian prisoners.

Palestinian prisoners released from West Bank
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Palestinian prisoners released from West Bank

Hours before the four bodies were transferred on Wednesday, the family of hostage Tsachi Idan said in a statement: “Our family has received with great sadness Hamas’s announcement that our beloved Tsachi is no longer alive and that his body will be returned to Israel during the night.”

It continued: “Since Tsachi was kidnapped, we received several signs of life, and in the previous deal last November, Tsachi was alive and expected to be released.

“We appreciate the tremendous love and support we are receiving from the citizens of Israel, the media, and the Nahal Oz community.”

The body of Tsachi Idan has been handed over. Pic: Bring Them Home
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The body of Tsachi Idan has been handed over. Pic: Bring Them Home

Egyptian mediators had earlier confirmed that they secured a breakthrough that would allow the handover of the final four hostage bodies due in the first phase of the deal after a days-long impasse.

Hamas said an agreement had been reached for the exchange of hostages for prisoners, but said their release would be conducted under a new mechanism.

It said the European Hospital in Khan Younis in southern Gaza was preparing to receive prisoners after their release.

Israel had previously refused to release more than 600 Palestinian prisoners and detainees on Saturday after accusing Hamas of breaching the ceasefire deal by staging what it considered an offensive public handover of hostages in Gaza.

The staged ceremonies in which living hostages and coffins containing hostage remains were displayed on stage before a crowd in Gaza drew strong criticism, including from the United Nations.

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Gaza hostage family mourned in Israel

Days earlier, the ceasefire deal which came into effect on 19 January was held up briefly when Hamas handed over the remains of an unidentified woman instead of mother-of-two Shiri Bibas before delivering the correct body the next day.

With the 42-day truce due to expire on Saturday, it also remains unclear whether an extension will be agreed or whether negotiations can begin on a second stage of the deal, which would see the release of the final 59 hostages left in Gaza.

Read more:
Trump shares bizarre AI video of Gaza vision
Brother of former hostage says he was tortured

Hamas said that, so far, it had not received any proposal for the second stage.

Despite numerous hiccups, the ceasefire deal has so far held up.

But moving to a second phase would require agreements on issues that have proved impossible to bridge in the past, including the post-war future of Gaza and Hamas, which Israel has vowed to eliminate as a governing force.

Underlining the precariousness of the ceasefire, the Israeli military said a projectile was fired from Gaza but fell within
the enclave. It said it was investigating the incident.

The exchange comes on the same day as the funeral for Ms Bibas and her two sons – four-year-old Ariel, and nine-month-old Kfir – who came to symbolise the trauma felt by many Israelis after the 7 October attack.

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Donald Trump says EU was ‘formed to screw the United States’ and threatens 25% tariffs

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Donald Trump says EU was 'formed to screw the United States' and threatens 25% tariffs

Donald Trump has said he will impose 25% tariffs on the EU “very soon” and claimed the bloc was “formed in order to screw the United States”.

The US president made the remarks while holding his first cabinet meeting at the White House since his inauguration in January.

The world’s richest man Elon Musk, who leads the US Department of Government Efficiency but is not a cabinet member, was among those present.

During his second term as president, Mr Trump has sparked fears of a global trade war by either imposing, or threatening to impose, high tariffs on both America’s allies and geopolitical rivals.

Earlier this month the US government imposed 25% tariffs on goods imported from Canada and Mexico and a 10% tariff on imports from China.

Beijing retaliated by imposing 10% duties on many US imports and 15% tariffs on coal and liquefied natural gas.

Meanwhile, the 25% tariffs on Mexico and Canada were paused after agreements were reached on border security.

‘They’ve taken advantage of us’

Asked whether he had made a decision about imposing tariffs on the European Union, Mr Trump said: “We have made a decision, we’ll be announcing it very soon and it will be 25% generally speaking and that will be on cars and all other things.

“The European Union is a different case than Canada, a different kind of case, they’ve really taken advantage of us in a different way.

“They don’t accept our cars, they don’t accept essentially our farm products. They use all sorts of reasons why not, and we accept everything from them, and we have about a $300bn (£237bn) deficit with the European Union.”

He added: “The European Union, it was formed in order to screw the United States.

“Let’s be honest – the European Union was formed in order to screw the United States, that’s the purpose of it, and they’ve done a good job of it, but now I’m president.”

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Putin is ‘very cunning’

Asked what he will do if the EU retaliates, Mr Trump said: “They can’t, I mean, they can try, but they can’t.”

He added: “They can retaliate, but it cannot be a successful retaliation, because we just go cold turkey, we don’t buy anymore.

“If that happens, we win.”

The threat of tariffs comes at a time of fragile relations between the US and Europe as the Trump administration appears to favour Moscow over Kyiv as it tries to bring about peace in Ukraine.

Mr Trump shocked European leaders last week by calling Ukrainian President Volodymyr Zelenskyy a “dictator with no elections”.

Mr Zelenskyy accused the US president of living in a Russian-made “disinformation space”.

Read more:
Trump shares bizarre AI video of Gaza vision
What minerals does Ukraine have?

White House responds to speculation over bruise on Trump’s hand

Elon Musk speaks at the cabinet meeting. Pic: AP
Image:
Elon Musk speaks at the cabinet meeting. Pic: AP

Ukraine to sign ‘very big’ deal

Asked at the cabinet meeting about security guarantees the US might be willing to offer Ukraine as part of peace negotiations, Mr Trump said: “I’m not going to make security guarantees beyond very much.

“We’re going to have Europe do that, because we’re talking about Europe as the next-door neighbour.”

Mr Trump also said Mr Zelenskyy will visit the US on Friday to sign a “very big” minerals deal.

The US president views the transaction with Ukraine as a fair way to recoup the billions of dollars that America has given Kyiv – via weapons and financial support – to help in their fight against Russia.

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Mr Trump went on to describe Russian President Vladimir Putin as a “very smart” and “very cunning person” during the cabinet meeting.

He said: “I think he wanted the whole (of Ukraine) when I got elected, (then) we spoke, and I think we’re going to have a deal.”

Ukraine NATO membership ruled out

Mr Trump also said he believes Mr Putin would never have invaded Ukraine if he was US president at the time.

Asked whether Ukraine could gain NATO membership, the US president said: “You can forget about it. That’s probably the reason the whole thing started.”

Mr Trump declined to comment when asked about whether he would ever allow China to take control of Taiwan by force.

“I never comment on that,” said. “I don’t want to ever put myself in that position.”

Mr Musk spoke briefly at the start of the meeting to explain why he believes the controversial cost-cutting measures his department has been carrying out have been necessary.

Cabinet members were then asked by reporters if they were happy with Mr Musk and how he has been carrying out his role.

Mr Musk started to answer the question, but Mr Trump interjected and said he might want to let cabinet members answer, before joking that if anyone disagreed, he might “throw them out”.

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Trump shares AI video of Gaza vision featuring golden statues, bearded belly dancers and Netanyahu on a sunbed

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Trump shares AI video of Gaza vision featuring golden statues, bearded belly dancers and Netanyahu on a sunbed

Donald Trump has shared a bizarre AI-generated video on his Truth Social platform showcasing what appears to be a vision of Gaza under his proposed plan.

The footage, which the 78-year-old shared without comment, shows the war-ravaged territory before a caption appears: “Gaza 2025… What’s Next?”

It then goes on to show the area transformed into a Middle Eastern paradise with exotic beaches, Dubai-style skyscrapers, luxury yachts and people partying.

Donald Trump Truth Social Gaza
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Pic: TruthSocial/@donaldtrump


Donald Trump Truth Social Gaza
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Pic: TruthSocial/@donaldtrump

Donald Trump Truth Social Gaza
Image:
Pic: TruthSocial/@donaldtrump

It includes a “Trump Gaza” tower and a gigantic, golden statue of the US president – with miniature versions on sale in a souvenir gift shop.

A child is also shown walking in a street, holding a huge, golden balloon of the president’s head.

The video also features the world leader dancing with a scantily clad belly dancer in a bar – and sunbathing and sipping cocktails by a hotel resort pool with Israeli Prime Minister Benjamin Netanyahu.

Elon Musk appears in the footage several times – sitting on a beach eating humous with flatbreads as bearded belly dancers perform on the sand.

The billionaire boss of X, Tesla and SpaceX – who also leads the US Department of Government Efficiency (DOGE) which has been tasked with cutting government spending – is also shown throwing dollar bills in the air for people.

Donald Trump Truth Social Gaza
Image:
Pic: TruthSocial/@donaldtrump


Donald Trump Truth Social Gaza
Image:
Pic: TruthSocial/@donaldtrump


A song written for the video also plays in the background.

The lyrics go: “Donald’s coming to set you free, bringing the light for all to see, no more tunnels, no more fear: Trump Gaza’s finally here.

“Trump Gaza’s shining bright, golden future, a brand new life.

“Feast and dance the deal is done, Trump Gaza number one.”

Sky News has established the video was first shared online in early February by accounts with no apparent connection to the White House.

Read more from Sky News:
Large bruise on Trump’s hand prompts speculation over health
What you need to know about Trump’s Gaza plan

Mr Trump announced his plan – for when the war between Israel and Hamas ends – earlier this year.

It includes relocating two million Gazans to neighbouring Arab countries and developing the territory into the “Riviera of the Middle East“.

He described Gaza as a “demolition site” where “virtually every building is down”.

Donald Trump Truth Social Gaza
Image:
Pic: TruthSocial/@donaldtrump


Donald Trump Truth Social Gaza
Image:
Pic: TruthSocial/@donaldtrump


Laying out his idea of what would happen beyond an Israel-Hamas ceasefire, he proposed: “The US will take over the Gaza Strip and we will do a job with it too.”

He said America would be “responsible for dismantling all of the dangerous unexploded bombs and other weapons on the site”, before it would “get rid of the destroyed buildings”, and “level it out”.

“Everybody I’ve spoken to loves the idea of the United States owning that piece of land, developing and creating thousands of jobs,” he added.

The White House described the proposal as “out-of-the-box” and “visionary” – but it was condemned as the effective “ethnic cleansing” of Palestinians from Gaza.

Hamas described the proposals as “ridiculous and absurd” in a statement from one of its officials.

Egypt, Jordan, and Saudi Arabia, which as fellow Arab nations support the Palestinian cause, also rejected Mr Trump’s plan.

Read more:
Analysis: Trump’s Gaza plan is so outrageous it might be something bigger

There was a mixed reaction to the video in the comments section below.

One person wrote: “I don’t think that’s funny or cool. Sorry. Am I missing something??? I hope it’s a joke a bad joke..”

“I hate this. I love our president, but this is horrible,” said another.

One Truth Social user wrote: “Mr President while I appreciate what you do, is not about you. To God be the glory and the honor, for without Him, you couldn’t have accomplished anything. The statue is a symbol of the antichrist, please humble yourself to God. Jesus is king and only Him.”

“You’re doing great Mr President. But don’t let it get to your head. God put you in that position for His Glory, not yours,” said another.

“Can we transform our US cities to look like this 2025 vision first? Our cities are dumps with ugly buildings and homeless people,” wrote one user.

“Everything looks good, just stay away from these guys,” said another, reposting a screengrab of the bearded belly dancers.

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