Disgraced crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison after being convicted of stealing billions of dollars from his customers.
He was the chief executive of FTX, which suddenly went bankrupt in November 2022 – leaving millions of users frozen out of their accounts and unable to make withdrawals.
The 32-year-old American could have faced up to 100 years behind bars – but last month, his lawyers argued such a sentence would have been “barbaric” and a five-year term would be more appropriate.
Initial reports said he had been sentenced to 20 years – but this has since been corrected to 25.
Prosecutors had asked the judge to jail Bankman-Fried for 40 to 50 years, arguing the public needed protecting from the fraudster and a harsh punishment would deter other criminals.
“The defendant victimised tens of thousands of people and companies, across several continents, over a period of multiple years,” prosecutors said in a court filing.
“He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence.”
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Prosecutors also said Bankman-Fried had cost customers, investors and lenders over $10bn (£7.9bn) by misappropriating funds to fuel his quest for influence and dominance in the new industry, and had illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, alleged bribes to Chinese officials and private planes.
At the sentencing hearing in Manhattan, Judge Lewis Kaplan said the businessman lied on the witness stand when he insisted he had no knowledge of customer funds being used this way.
The judge also described Bankman-Fried’s claim that victims will be paid back in full as “misleading and logically flawed”.
“A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on the sentence by using his Las Vegas winnings to pay back what he stole,” Judge Kaplan warned.
The judge said that the sentence reflected “a risk that this man will be in a position to do something very bad in the future”.
“And it’s not a trivial risk at all.”
He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time”.
Before he was sentenced, Mr Bankman-Fried apologised in a rambling statement.
Sam Bankman-Fried leaving court last July. Pic: Reuters
“A lot of people feel really let down. And they were very let down. And I’m sorry about that. I’m sorry about what happened at every stage,” he said.
“My useful life is probably over. It’s been over for a while now, from before my arrest.”
Judge Kaplan said he would advise the Federal Bureau of Prisons to send him to a medium-security prison or less near the San Francisco area because he’s unlikely to be a physical threat to other inmates or prison staff, and his autism and social awkwardness would make him vulnerable to other inmates in a high-security location.
Read more:
The meteoric rise and even sharper fall of Sam Bankman-Fried
Why industry may never recover from downfall of ‘crypto king’
It took just five-and-a-half hours for a jury in New York to convict him of two counts of fraud and five of conspiracy last November.
Three people from Bankman-Fried’s inner circle – including his former girlfriend Caroline Ellison – pleaded guilty to related crimes and testified at his trial.
Sam Bankman-Fried’s colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters
Bankman-Fried’s conviction followed a dramatic fall from grace from his time as chief executive of FTX – the second-largest cryptocurrency exchange in the world at one time – when he was worth billions of dollars on paper.
FTX allowed investors to buy dozens of virtual currencies, from Bitcoin to more obscure ones like Shiba Inu Coin.
Pic: Reuters
Flush with billions of dollars of investors’ cash, Bankman-Fried rode a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.
But after the collapse of cryptocurrency prices in 2022, Bankman-Fried tried to plug the holes in the balance sheet of FTX’s hedge fund affiliate, known as Alameda Research.
Bankman-Fried’s victims – an estimated 80,000 of whom are based in the UK – remain out of pocket, with some losing their life savings.
Prosecutors described his crimes as one of the biggest financial frauds in US history.
World
Ukraine war: ‘We’ve never been closer to a peace deal’ – Trump and Putin to hold talks on ending conflict
Donald Trump will speak to Vladimir Putin by phone later today – with the White House saying “we’ve never been closer to a peace deal” in Ukraine.
In a post on Truth Social, the US president said he would be speaking to his Russian counterpart on Tuesday morning – adding: “Many elements of a Final Agreement have been agreed to, but much remains.
“Thousands of young soldiers, and others, are being killed. Each week brings 2,500 soldier deaths, from both sides, and it must end NOW.”
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What will Trump and Putin discuss?
While aboard Air Force One, Mr Trump had told reporters that land and power plants were part of the conversation on bringing the war to a close.
After crunch talks in Saudi Arabia between US and Ukrainian diplomats, Volodymyr Zelenskyy said last week that Kyiv would accept a 30-day pause in fighting if Russia committed to it as well.
Since then, Mr Putin has said he agrees fighting in Ukraine should end – but warned “lots of questions” remain over the proposed ceasefire.
He has also met US envoy Steve Witkoff to discuss the details of the proposal.
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‘We have to keep pressure on Putin’
It comes as Ukraine’s air defence units said they shot down 90 of 174 drones launched by Russia in an overnight attack on Monday.
Russia has been attacking the Odesa region with drones and missiles on a daily basis for three weeks, the air force said – adding that 70 other drones were disrupted in the attack.
Odesa Governor Oleh Kiper added a civilian was injured during the strikes, which damaged a kindergarten, a house, a shop and a car.
Biden children’s security detail revoked
In other developments, Mr Trump said on Truth Social that he is “immediately” revoking Secret Service protection that was being given to Joe Biden’s children.
He claimed 18 agents were assigned to Hunter Biden’s protective detail while in South Africa this week – and added Ashley Biden had 13 agents assigned to her detail who “will be taken off the list”.
World
Israel carries out ‘extensive strikes’ in Gaza – and warns it will act with ‘increasing military force’
Israel says it is currently carrying out “extensive strikes on terror targets” across the Gaza Strip.
A statement added that “from now on, Israel will act against Hamas with increasing military force”.
According to the Reuters news agency, a senior Hamas official said Israel is unilaterally ending the Gaza ceasefire agreement.
Early on Tuesday, the Hamas-run Gaza Health Ministry said at least 44 people were killed in the airstrikes.
An ambulance outside al Aqsa Hospital. Pic: AP
In a statement, the Prime Minister’s Office said Benjamin Netanyahu and defence minister Israel Katz ordered the Israeli Defence Forces (IDF) to “act forcefully” against Hamas.
It came after the militant group “repeatedly refused to release our hostages and rejected all offers it received from the US presidential envoy, Steve Witkoff, and from the mediators”.
“The operational plan was presented late last week by the IDF and approved by the political echelon,” the statement added.
The IDF and Shin Bet described the strikes as “extensive” – and said they were against “terror targets belonging to the Hamas terrorist organization in the Gaza Strip”.
Last week, the Gaza health ministry said nine Palestinians, including three journalists, were killed in an Israeli airstrike in the northern town of Beit Lahia.
‘I wish to leave’
A Palestinian source who lives in central Gaza told Sky News’ US correspondent Mark Stone the strikes were “not a surprise” and that “I guess the strongest ones can do whatever they want”.
The source then said, according to Mr Stone, that “we were sure that this war wouldn’t end” and added: “I wish they (Israel) would open the Rafah border crossing (into Egypt).
“I wish to leave. I cannot take it anymore.”
It comes almost two months after a three-phase ceasefire was reached by Hamas and Israel to pause the war.
Over the first phase of the ceasefire, which lasted six weeks, Hamas released 33 Israeli hostages held in Gaza and five Thai nationals, in exchange for around 2,000 Palestinian prisoners and detainees.
But since the first phase officially concluded, both Israel and Hamas have failed to agree on how to progress with the second phase – which would see the release of the remaining Israeli hostages and end the withdrawal of Israeli troops from the Gaza Strip.
US Middle East envoy Steve Witkoff proposed extending the first phase through to the end of Ramadan and Passover, or until 20 April, which Hamas rejected.
At the start of March, Israel said it stopped all goods and supplies to Gaza after claiming Hamas was refusing to “accept the Witkoff outline for continuing the talks, which Israel agreed to”. Hamas called it “a war crime and a blatant attack”.
Five days later, Israel said it had cut off the electricity supply to Gaza.
The war in Gaza began after Hamas militants carried out a cross-border raid into southern Israel on 7 October 2023, killing 1,200 people and capturing around 250 hostages, according to Israeli officials.
Israel responded by launching an air and ground offensive in Gaza which has killed more than 48,000 Palestinians, say Gaza health officials.
Meanwhile, White House press secretary Karoline Leavitt said in a Fox News interview that US President Donald Trump’s administration was consulted by Israel on the strikes earlier on Monday.
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Mixed martial arts fighter Conor McGregor has met Donald Trump in the Oval Office after complaining about Ireland’s “illegal immigration racket”.
The 36-year-old told Mr Trump that his work ethic was “inspiring”, with the two men sharing jovial comments about the fighter’s suit and a map featuring the Gulf of Mexico labelled as the Gulf of America.
In comments made in the White House briefing room before the meeting during the St. Patrick’s Day visit, he said he was visiting the White House to “raise the issues the people of Ireland face”.
“What is going on in Ireland is a travesty,” he said. “Our government is the government of zero action with zero accountability.”
Trump and McGregor meeting in the Oval Office. Pic: X/@MargoMartin47
McGregor warned “Ireland is at the cusp of potentially losing its Irishness” due to the “illegal immigration racket”.
“Ireland and America, we are siblings. We consider America our big sibling. So it’s important for Ireland to be a peaceful, prosperous country for 40 million Irish Americans to have a place to visit, [to] come back to their home.
“So we wish for our relationship with the United States to continue, and we wish to be taken care of by the big bro. The United States should look after its little bro. And that’s how we feel,” McGregor said.
White House press secretary Karoline Leavitt, who appeared alongside McGregor in the briefing room, said: “We couldn’t think of a better guest to have with us on St. Patrick’s Day.”
At a meeting with Irish Prime Minister Micheal Martin last week, Mr Trump said McGregor was his favourite Irish person partly because “he’s got the best tattoos I’ve ever seen”.
UFC fighter Conor McGregor speaks with White House press secretary Karoline Leavitt at his side during a visit to the White House in Washington. Pic: Reuters
But Mr Martin and deputy prime minister Simon Harris have been critical of today’s Trump-McGregor meeting.
In a post on X, Mr Martin said: “McGregor’s remarks are wrong, and do not reflect the spirit of St Patrick’s Day, or the views of the people of Ireland.”
Meanwhile, Mr Harris said that McGregor was not in the US to represent Ireland and did not speak for the people of Ireland, and “has no mandate to”.
In exclusive comments made to Sky News’ David Blevins about Mr Martin’s comments, McGregor said: “Shame on him for saying that, speaking down on an Irish man.”
He added: “Every metric available to us has shown that the government of Ireland has failed the people of Ireland.”
Mr Trump is well known for his support of Ultimate Fighting Championship, which McGregor is best known for competing in, and attended bouts during the 2024 presidential campaign.
Read more: The deepening ties that led to the controversial Tates flying to freedom in US
McGregor is a controversial figure in Ireland after a woman who accused him of raping her won her civil case and was awarded more than £200,000 in damages.
Tesco was among the retailers that stopped selling alcohol brands linked to McGregor after Nikita Hand was awarded €248,603 (£206,000) after a jury found McGregor assaulted her in a hotel in 2018.
McGregor is appealing against the outcome of the civil case.
McGregor also pleaded guilty to assaulting a man in a Dublin pub in 2019 and has been subject to several other allegations of assault and sexual assault.
His social media posts were also linked to the 2023 Dublin riots. Irish police were reportedly investigating McGregor’s posts for alleged incitement to hatred in relation to the riots.
McGregor, nicknamed the Notorious, rose to worldwide prominence for winning several UFC championships.
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