Sam Bankman-Fried: Disgraced ‘crypto king’ jailed for 25 years after stealing billions of dollars from FTX customers
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.
A crew has entered the International Space Station (ISS) to replace the astronauts who were stranded there for nine months.
A SpaceX capsule delivered four astronauts on Sunday on a mission to allow Butch Wilmore and Suni Williams – who have been on the ISS since June 2024 – to return home.
The Dragon craft, with the Crew-10 astronauts inside, docked with the orbiting laboratory at 4.04am UK time, around 29 hours after it had been launched on the top of the Falcon 9 rocket from NASA’s Kennedy Space Center in Florida.
Butch Wilmore (back row centre) and Suni Williams (back row right) celebrate with the rest of the astronauts replacing them on the International Space Station.
The replacement crew, including Russia’s Kirill Peskov (centre), were welcomed on board the International Space Station (ISS). Pic: NASA
NASA’s Anne McClain and Nichole Ayers, both military pilots, along with Japan’s Takuya Onishi and Russia’s Kirill Peskov, both former airline pilots, will spend the next six months at the space station.
Their mission will allow four members of Crew-9, which includes Mr Wilmore and Ms Williams, to return to Earth.
Suni Williams and Butch Wilmore during their unplanned nine month stay in space.
File pic: NASA/AP
It took several minutes for Dragon to safely dock at the ISS, in what is an automated process.
But there was about 1 hour and 45 minutes of additional safety checks before the hatch could be opened.
Mr Wilmore swung open the space station’s hatch and rang the ship’s bell as the arrivals floated in one by one and were greeted with hugs and handshakes.
How they were stranded
Mr Wilmore and Ms Williams originally planned to go to space for just eight days but got stuck on the station after their Boeing Starliner spacecraft started experiencing problems.
Technical issues left them stranded, and various attempts to bring them home were unsuccessful.
The craft encountered so many problems that NASA insisted it return to Earth empty, leaving the pilots behind until now.
‘You can hardly even put it into words’
“It was a wonderful day. Great to see our friends arrive,” Ms Williams told Mission Control after the new astronauts had been welcomed aboard.
The moments after docking with Suni Williams, centre, finally facing the prospect of returning back to Earth.
Pic: NASA/AP
The astronauts, including Japan’s Takuya Onishi, greeting one another after arrival on the International Space Station.
Pic: NASA/AP
Speaking after the successful docking, Ms McClain added: “Crew-10 has had a great journey up here and I cannot tell you the immense joy of our crew when we looked out the window and we saw the space station for the first time.
“That is such an amazing journey. You can hardly even put it into words.”
The dragon capsule was manoeuvred towards ISS before it docked. Pic: NASA
The view from the ISS as the Dragon capsule edged closer and docked. Pic: NASA
The journey back to Earth
The four newcomers will spend the next few days learning the station’s ins and outs from Mr Wilmore and Ms Williams.
Then the two of them will strap into their own capsule later in the week, one that has been up there since last year, to close out the unexpected extended mission.
The pair’s ride back arrived in late September with a downsized crew of two and two empty seats reserved for the leg back.
The Dragon capsule safely docked with the International Space Station. Pic: NASA
But more delays emerged when their replacements’ brand new capsule needed extensive battery repairs.
An older capsule took its place, pushing up their return by a couple of weeks to mid-March.
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Weather permitting, the SpaceX capsule carrying them and two other astronauts will undock no earlier than Wednesday and splash down off Florida’s coast.
World
Nine Palestinians killed, including three journalists, in Israeli airstrike, Gaza health ministry says
An Israeli airstrike in Gaza has killed at least nine Palestinians, including three local journalists, the territory’s health ministry has said.
The strike hit a car, with casualties inside and outside the vehicle, and several people were critically injured, according to officials in the Gaza Strip.
Six volunteers from the Al Khair Foundation were “deliberately targeted” and killed while on their way to deliver aid in the northern town of Beit Lahia, said the UK-based international non-governmental organisation (NGO).
Among the six were the three journalists – Mahmoud al Sarraj, Mahmoud Isleem, and Bilal Abu Matar – who were recording humanitarian relief efforts for those affected by the war in Gaza, the foundation said.
The other three victims have been named as Bilal Akeela, Mohammad al Ghafir, and Hazem Gharib.
The foundation said: “The first strike injured one team member, prompting them to move away, but a drone followed them and struck their vehicle directly with a second strike, killing them all.”
What has Israel’s military said?
In a statement, the Israeli military said it had struck two individuals who it identified as “terrorists” operating a drone that it said posed a threat to forces in Beit Lahiya.
The military later struck several other suspects who it said had collected the drone equipment and entered a vehicle.
The military did not say how it had established that the individuals it had struck were “terrorists” or provide details about the threat that the drone had posed to its troops.
Gaza official denies army’s claims
Salama Marouf, the head of the Hamas-run Gaza government media office, denied the Israeli army’s allegations.
“The team was made of civilians and worked in an area near a shelter on a mission sponsored by a charity. They didn’t exist in a prohibited area and didn’t pose any danger of any kind to the occupation army,” Marouf said in a statement.
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Thousands call for longer ceasefire deal for hostages
Saturday’s incident underscores the fragility of the 19 January ceasefire agreement that halted large-scale fighting in the Gaza Strip. Palestinian health officials say dozens of people have been killed by Israeli fire despite the truce.
The airstrike coincided with a visit to Egypt’s capital Cairo by Hamas’s exiled Gaza chief, Khalil al Hayya, for further truce talks aimed at resolving disputes with Israel.
Read more:
Israel accused of ‘genocidal acts’ against Palestinians in UN report
Palestinian officials say Israel kills eight in Gaza and five in West Bank
The militant group has accused Israel of attempting to renege on the ceasefire agreement, putting the number of Palestinians killed since 19 January, it says, at 150.
Hamas urged mediators to compel Israel to move ahead with the implementation of the phased ceasefire deal, blaming Israel’s Prime Minister Benjamin Netanyahu for the current impasse.
What next for ceasefire deal?
The temporary first phase, where Hamas released dozens of Israeli hostages in return for around 1,500 Palestinian prisoners being freed from Israeli jails, expired on 2 March.
Israeli Prime Minister Benjamin Netanyahu. File pic: AP
But Israel says it wants to extend the first phase, a proposal backed by US envoy Steve Witkoff.
Hamas says it will only resume freeing hostages under the second phase.
Israel has rejected opening the second phase of talks, which would require it to negotiate over a permanent end to the war, which is Hamas’s main demand.
The war began when 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.
The Gaza health ministry does not distinguish between civilians and combatants in its count but said more than half of the fatalities were women and children.
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