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Former cryptocurrency exchange boss Sam Bankman-Fried hugged his parents after being denied bail on charges relating to “one of the biggest financial frauds in American history”.

The 30-year-old founder of FTX, has been charged by the US Securities and Exchange Commission (SEC) with fraud and violating campaign finance laws. He is also being sued.

Following his arrest in the Bahamas, a judge denied him bail, saying he was a “great” flight risk, and sent him to a local correctional facility instead.

Bankman-Fried will remain in custody in the Bahamas until at least 8 February.

The latest developments cap a stunning fall from grace in recent weeks for the man known as SBF, who amassed a fortune valued over $20bn (£16.2bn) as he rode a cryptocurrency boom to build FTX into one of the world’s largest exchanges before it abruptly collapsed this year.

Bankman-Fried has previously apologised to customers and acknowledged oversight failings at FTX, but said he does not personally think he has any criminal liability.

Earlier on Tuesday, US Attorney Damian Williams in New York alleged Bankman-Fried had made illegal campaign contributions to Democrats and Republicans with “stolen customer money,” labelling it part of one of the “biggest financial frauds in American history”.

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Bankman-Fried faces a maximum sentence of 115 years in prison if convicted on all eight counts, prosecutors said.

He was arrested at his home in a gated community in the Bahamas capital, Nassau.

In the indictment unsealed on Tuesday morning, US prosecutors claimed Bankman-Fried had engaged in a scheme to defraud FTX’s customers by misappropriating their deposits to pay for expenses and debts and to make investments on behalf of his crypto hedge fund, Alameda Research LLC.

He also defrauded lenders to Alameda by providing false and misleading information about the hedge fund’s condition, and sought to disguise the money he had earned from committing wire fraud, it is alleged.

Sam Bankman-Fried is escorted out of court in Nassau, Bahamas

Both the SEC and the Commodity Futures Trading Commission (CFTC) alleged Mr Bankman-Fried committed fraud in lawsuits filed on Tuesday.

The CFTC sued him, Alameda and FTX, alleging fraud involving digital commodity assets.

Since at least May 2019, FTX raised more than $1.8bn from equity investors in a years-long “brazen, multi-year scheme” in which Bankman-Fried concealed FTX was diverting customer funds to Alameda Research, the SEC alleged.

Bankman-Fried, who founded FTX in 2019, was an unconventional figure who sported wild hair, t-shirts and shorts on panel appearances with statesmen like former American President Bill Clinton.

He became one of the largest Democratic donors, contributing $5.2m (£4.2m) to President Joe Biden’s 2020 campaign.

FTX founder Sam Bankman-Fried poses for a picture, in an unspecified location, in this undated handout picture, obtained by Reuters on July 5, 2022. FTX/Handout via REUTERS/File Photo

Forbes pegged his net worth a year ago at $26.5bn (£21.4bn).

FTX filed for bankruptcy on 11 November, leaving an estimated one million customers and other investors facing losses in the billions of dollars. SBF resigned as chief executive the same day.

The collapse reverberated across the crypto world and sent bitcoin and other digital assets plummeting.

John Ray, Bankman-Fried’s successor as CEO, was called to testify before the House Financial Services Committee in the US Congress on Tuesday.

A crypto exchange is a platform on which investors can trade digital tokens such as bitcoin.

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Trump says 11 dead in strike on Venezuelan drugs boat

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Trump says 11 dead in strike on Venezuelan drugs boat

A strike on what the US called a Venezuelan gang’s drug-carrying vessel killed 11 people, Donald Trump has said.

Speaking at a news conference at the White House, the US president told reporters: “We just, over the last few minutes, literally shot out a boat, a drug-carrying boat, a lot of drugs in that boat.

“And there’s more where that came from. We have a lot of drugs pouring into our country, coming in for a long time.”

Secretary of State Marco Rubio then added: “These particular drugs were probably headed to Trinidad or some other country in the Caribbean.

“Suffice to say the president is going to be on offence against drug cartels and drug trafficking in the United States.”

Mr Trump later posted a video on Truth Social of a vessel exploding, in what appeared to mark the first US military operation in the southern Caribbean to crack down on drug cartels.

The president said on social media that the US military had identified the crew as members of Venezuelan gang Tren de Aragua, which was designated a terrorist group in February.

He then alleged that Tren de Aragua is being controlled by Venezuela’s President Nicolas Maduro, which the country denies.

Venezuelan officials have repeatedly said that Tren de Aragua is no longer active in their country after they dismantled it during a prison raid in 2023.

The US last month doubled its reward for information leading to the arrest of Mr Maduro to $50m, accusing him of links to drug trafficking and criminal groups.

The US has deployed warships in the southern Caribbean in recent weeks.

Seven warships, along with one nuclear-powered fast-attack submarine, are either in the region or expected to arrive soon, carrying more than 4,500 sailors and Marines.

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Officials have said that the US military has also been flying P-8 spy planes over international waters in the region to gather intelligence.

Mr Maduro said on Monday that he “would constitutionally declare a republic in arms” if Venezuela were attacked by US forces deployed in the Caribbean.

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Matthew Perry and the Hollywood drug network exposed by his death

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Matthew Perry and the Hollywood drug network exposed by his death

Before he died alone in his jacuzzi, Matthew Perry had received three injections of ketamine in the space of just six hours. “Shoot me up with a big one,” he told his personal assistant, ahead of the final, fatal dose.

According to court documents, in the period leading up to 28 October 2023, Kenneth Iwamasa was illegally administering Perry with between six and eight shots of the drug, an anaesthetic that can have hallucinogenic effects, each day.

A live-in assistant, he admitted to finding the actor unconscious at his Pacific Palisades home on at least two occasions in the weeks prior.

The hit that ultimately killed the Friends star was supplied by Jasveen Sangha, also known as the “Ketamine Queen” – a dealer who apparently only dealt “with high-end and celebs”. She has agreed to plead guilty to five charges and will appear in court later today.

Her charges, along with others filed against Iwamasa and others over the supply of ketamine to Perry, exposed part of Hollywood’s underground drug network – and put the spotlight on the world of celebrity, money and power.

Jasveen Sangha was known as the 'Ketamine Queen'. Pic: Jojo Korsh/BFA.com/Shutterstock
Image:
Jasveen Sangha was known as the ‘Ketamine Queen’. Pic: Jojo Korsh/BFA.com/Shutterstock

‘Yes men’ with terrible consequences

Perry’s death was met with both utter shock and a sad sense of the inevitable. The world knew him best as Chandler Bing, the comic heartbeat of Friends. But behind the jokes and the sarcasm, he was deeply troubled.

“It almost felt like we’d been mourning Matthew for a long time because his battle with that disease was a really hard one for him to fight,” is how his former co-star Jennifer Aniston described his addiction in a recent interview. “As hard as it was for all of us and for the fans, there’s a part of me that thinks this is better… I’m glad he’s out of that pain.”

The actor was an addict, and vulnerable – but also a huge star, worth millions.

Kenneth Iwamasa was Matthew Perry's live-in assistant. Pic: APEX / The Mega Agency
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Kenneth Iwamasa was Matthew Perry’s live-in assistant. Pic: APEX / The Mega Agency

Iwamasa was administering the injections, ultimately playing God – but to him, the power most likely lay with his famous boss. His actions may seem inexcusable, but did he feel he had a choice?

“I think it was a situation that increasingly got more and more out of control,” says Bonnie Low-Kramen, a former celebrity assistant turned trainer, and author of Be The Ultimate Assistant.

Photos: Photos: Jojo Korsh/BFA.com/Shutterstock/ APEX/The Mega Agency/ AP/ DoJ/ AP
Image:
Photos: Photos: Jojo Korsh/BFA.com/Shutterstock/ APEX/The Mega Agency/ AP/ DoJ/ AP

Those who do the job, especially in Los Angeles, can be put under an enormous amount of pressure, she says, “tasked with doing things many of us wouldn’t imagine carrying out for our employers. It is a job which comes with an inherent power imbalance”.

Which means it can be incredibly hard to say no.

“When people are rich and famous, they often have people around them who won’t say no,” she says. “And assistants are in the yes business anyway.

“We’re in the business of figuring out, ‘well, let’s solve the problem…’. When money is no object, there are new rules that apply in that situation and that can be really hard to handle.”

Iwamasa is not the first celebrity assistant asked to administer or pick up illegal drugs, she says, and Perry is not the first star to die after taking drugs.

Money Iwamasa paid for ketamine. Pic Central District of California Prosecutor's Office
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Money Iwamasa paid for ketamine. Pic Central District of California Prosecutor’s Office

Ms Low-Kramen highlights the deaths of Janis Joplin, Prince and John Belushi as just a few other examples.

“Unfortunately, there are so many examples of this tragic end, where the abuse of drugs gets to a point where they’ve handled it for a really long time, and then the day comes when it can’t be handled anymore.”

For those struggling with addiction, being surrounded by “yes men” can have terrible consequences, says Garrett Braukman, an addiction treatment executive in Hollywood.

“Treatment is difficult for people when they have yes men. They have a lot of people that are going to tell them you can get whatever you want, you can get drugs, you can get alcohol, you could do whatever, and no one is willing to really look at that from the perspective of how dangerous that is.”

Read more:
Obituary: The one who made everyone laugh
Matthew Perry: A life in pictures

Material prosecutors said was taken from Sangha's 'stash house'. Pic: Central District of California Prosecutor's Office
Image:
Material prosecutors said was taken from Sangha’s ‘stash house’. Pic: Central District of California Prosecutor’s Office

Mr Braukman says addiction can go hand in hand with fame and that a “high” percentage of his patients work in the entertainment industry.

“I don’t know how I would be able to stay clean and sober if I go to my grandma’s house and there’s 20 guys outside of my grandma’s house taking pictures of me walking in. You become an animal to a degree that people are watching.”

Dr Salvador Plasencia appeared in court in July. Pic: Reuters/Mike Blake
Image:
Dr Salvador Plasencia appeared in court in July. Pic: Reuters/Mike Blake

Rise in use of ketamine

The use of ketamine recreationally has been on the rise in recent years, in the UK as well as the US. In England, some 3,609 people started treatment for problems with the drug in the year 2023-2024 – more than eight times the number in 2014-2015, when 426 sought help, according to government statistics.

In January, drag queen The Vivienne was found dead in the bath at their home in Cheshire, aged 32. The star’s family later told how the performer had died “from the effects of ketamine use causing a cardiac arrest”.

Ketamine is usually taken recreationally as a crushed powder, but also sometimes injected or swallowed – making people feel detached and dreamlike. It can also cause severe bladder and kidney problems.

The Vivienne died after taking ketamine in January 2025. Pic: PA
Image:
The Vivienne died after taking ketamine in January 2025. Pic: PA

Perry’s struggles with alcohol and other drugs, before ketamine, were long running and well documented, starting with drinking as a teenager before moving on to painkilling prescription drugs Vicodin and OxyContin, and tranquilliser Xanax.

“I have spent upward of $7m (£5.8m) trying to get sober,” he wrote in his memoir, released when he was clean, just a year before his death.

While accepting the almost unsurpassable legacy of the hit show that made him a star, he said he hoped his support for fellow addicts would be the achievement he was best remembered for.

“When I die, I don’t want Friends to be the first thing that’s mentioned – I want helping others to be the first thing that’s mentioned and I’m going to live the rest of my life proving that.”

He only lived for another year.

Perry (centre) with his Friends co-stars David Schwimmer, Lisa Kudrow, Courteney Cox, Jennifer Aniston and Matt LeBlanc at the Emmys in 2002. Pic: Reuters
Image:
Perry (centre) with his Friends co-stars David Schwimmer, Lisa Kudrow, Courteney Cox, Jennifer Aniston and Matt LeBlanc at the Emmys in 2002. Pic: Reuters

Illegal use v therapy

Before he died, Perry had been undergoing legal ketamine infusion therapy to treat depression and anxiety. The drug can be used as a treatment in clinical settings in the US, and some specialist and private centres in the UK – although there are concerns from some medics here about its use even in those settings.

According to a postmortem report, the actor had reportedly been clean for 19 months before he started obtaining the drug illegally as well.

It was not the supervised doses that killed him, but the idea of an addict taking the drug to help their problems might still sound shocking.

Pic: Reuters
Image:
Pic: Reuters

In California, ketamine drips are legally used as pain relief, to treat mood disorders and to help with addiction. Other celebrities and notable figures – including Chrissy Teigen, Elon Musk and Sharon Osbourne – have all shared details of ketamine therapy and how it helped them.

Dr Austin Harris, owner and medical director at NeuroRelief Ketamine Infusion Therapy, says historically the drug is “extremely safe” when used in the right conditions, and swears by its effectiveness.

At the clinic in California, he explained to Sky News how it can help people with mood disorders and chronic pain, as well as those in recovery from drug or alcohol abuse.

“Which a lot of people who don’t really understand this at a scientific level might think is an oxymoron,” he says. “But actually, it’s profoundly beneficial – done properly – in resetting both neurologic and psychological patterns for substance abuse.”

Ketamine treatment at NeuroRelief Ketamine Infusion Therapy in LA
Image:
Ketamine treatment at NeuroRelief Ketamine Infusion Therapy in LA

Ketamine infusion “restarts in our brain what should already be there”, he says, in terms of “the neurologic road workers, to be able to then direct, to build new patterns and actual new nerve pathways”.

One patient having therapy at the clinic also spoke to us, saying he had abused alcohol and marijuana, and occasionally opiate painkillers, for many years.

“I’ve had enough experience and decades of being addicted to drugs and alcohol and traumas and trying different things,” he said. “When I came out of that infusion I was like, wait a minute. I didn’t have the shakes. I didn’t have the cravings.”

Read more:
Parties and busted doors: Living next to ‘Ketamine Queen’

The drug addiction leaving users in chronic pain

Dr Harris emphasises the need for administration by a professional in a clinical setting. “Matthew Perry was being illegally sold ketamine on the black market. The fact that a doctor happened to be one of several people that was illegally selling it to him should not be confused with the appropriate legal utilisation of ketamine.”

The actor was vulnerable, Dr Harris continues. “It’s absolutely abominable… You have someone with serious addiction problems, lifelong. And sadly, I think that he was really taken advantage of.”

The drugs stash

As well as Sangha and Iwamasa, the others charged over Perry’s death are Erik Fleming, an associate of Perry’s who was in contact with Sangha, Dr Mark Chavez, a physician, and Dr Salvador Plasencia, who also supplied ketamine illegally to Perry.

“I wonder how much this moron will pay,” Dr Plasencia said in a text exchange between him and Chavez.

Dr Mark Chavez, a physician from San Diego, pleaded guilty in court last year. Pic: AP/ Damian Dovargan
Image:
Dr Mark Chavez, a physician from San Diego, pleaded guilty in court last year. Pic: AP/ Damian Dovargan

After Perry died, Sangha desperately sought to cover her involvement. “Delete all our messages,” she instructed Fleming in a message on Signal.

In March 2024, law enforcement searched Sangha’s home and found 1.7kg of pressed pills containing methamphetamine, 79 vials of liquid ketamine, MDMA (ecstasy) tablets, counterfeit Xanax pills, baggies containing powdered ketamine and cocaine, and other drug-trafficking items such as a gold money counting machine, a scale, a wireless signal and hidden camera detector, drug packaging materials, and $5,723 in cash, according to her plea agreement.

Sangha was happy to supply to Hollywood’s rich and famous – and not an anomaly.

Several books have been written by Tinseltown dealers, and only a few months ago, the Sean “Diddy” Combs trial heard from a former personal assistant to the hip-hop mogul who testified about meeting sellers for his boss.

Now, as she becomes the last defendant to admit her role in Perry’s death, the Ketamine Queen’s guilty plea brings to a close the criminal investigation into the circumstances surrounding the tragedy.

But in a world where money talks, where fame and addiction or mental health issues often go hand-in-hand, it is unlikely to be the last.

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Cardi B cleared of assaulting security guard

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Cardi B cleared of assaulting security guard

Cardi B has been cleared of assault by a California jury in a civil trial brought by a former security guard.

The $24m (£17.9m) case was brought over an encounter outside an obstetrician’s office in Beverly Hills in 2018.

Emani Ellis alleged the rapper cut her cheek with a fingernail and spat on her.

Cardi B, real name Belcalis Marlenis Almanzar, testified earlier on Wednesday that while an argument between her and Ms Ellis became aggressive, she didn’t touch the security guard.

The Bodak Yellow rapper told the court she had been visiting Los Angeles for promotional work in February 2018, around that year’s NBA All-Star Game.

File pic: Reuters
Image:
File pic: Reuters

She said she was four months into her pregnancy with the first of her three children with rapper Offset, and had not publicly shared news of her pregnancy

After attending an appointment at the obstetrician’s office – which had been closed to other patients on a Saturday for her privacy – she said Ms Ellis followed her to her fifth-floor appointment.

Cardi then told the court she heard Ms Ellis say her name into a phone and appeared to be filming her, fearing Ms Ellis would out the fact that she was pregnant.

“I told her, ‘Why are you recording?'” she testified, “and she said, ‘Oh my bad.’ She practically apologised.'”

As an argument broke out, Cardi said “she’s walking into me” and testified that Ms Ellis was bigger than her,

“She is like, security-heavy,” she added. “She just looks a little, like she could protect the building.”

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Ms Ellis testified earlier in the trial that the incident left her humiliated and traumatised, and the scar on her face required cosmetic surgery.

The former security guard, who lost her job over the incident, was seeking damages that include medical expenses, compensation for emotional and physical suffering, and lost wages, along with punitive damages.

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