Sam Bankman-Fried was breathlessly described as a wunderkind – a boy wonder transforming the world of finance.
Renowned for his messy hair and unkempt appearance, he graced the covers of Forbes and Fortune, who pondered whether he could become the next Warren Buffett.
The 32-year-old was the founder of FTX, which had quickly become the world’s second-largest cryptocurrency exchange – a place where investors could buy and sell digital assets like Bitcoin.
Image: Larry David appeared in an advert for FTX during the Super Bowl in 2022
Star-studded adverts featuring the tennis player Naomi Osaka and the comedian Larry David added to its allure – with eye-watering sums spent on sponsorship deals.
But in November 2022, Bankman-Fried’s crypto empire came crashing down after it emerged that customer funds worth $10bn (£7.9bn) was missing.
A year later, a jury convicted the fallen entrepreneur of fraud and money laundering after just five hours of deliberations – based on evidence from close colleagues who had turned against him.
Now, “SBF” is beginning a lengthy prison sentence of 25 years for what prosecutors have described as “one of the biggest financial frauds in American history”.
His punishment may be little comfort to five million FTX customers who were suddenly locked out of their accounts as the company entered bankruptcy – and are yet to receive any compensation.
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2:19
November: ‘Crypto king’ guilty of fraud
An estimated 80,000 of Bankman-Fried’s victims were based in the UK. Some of them had millions of pounds tied up in the company after entrusting him with their life savings.
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While slick marketing campaigns had presented FTX as a safe way to invest in volatile cryptocurrencies, the reality behind the scenes couldn’t have been more different.
Secret back doors had been established that allowed SBF’s other company, Alameda Research, to access money belonging to FTX customers and make risky bets without their knowledge.
Meanwhile, executives were spending lavishly. Private jets ferried Amazon orders from Miami to the firm’s headquarters in the Bahamas, £12m was spent on luxury hotel stays in just nine months, and employees in the US were allowed to order £160 of food deliveries each a day.
The fallout from FTX’s demise also reaches as far as the White House. Bankman-Fried was one of the largest donors to Joe Biden’s campaign in 2020, with the president subsequently facing pressure to return millions of dollars.
Image: Sam Bankman-Fried’s colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters
A new chief executive has been tasked with untangling where all the money went. Soon after FTX went under, he said: “Never in my career have I seen such a complete failure of corporate controls.”
Unusually, and thankfully, FTX victims are expected to be compensated in full eventually – kind of.
The payouts they receive will be based on what cryptocurrencies were worth in November 2022. But Bitcoin was trading at £16,000 back then and is now worth £55,500.
Bizarre plans to bring FTX out of bankruptcy and reopen the exchange have also been abandoned.
Other entrepreneurs in this space – who had loyal, cult-like followings and huge profiles – are also facing jail time.
Image: Changpeng Zhao has pleaded guilty to money laundering charges. Pic: Reuters
His company had allowed individuals in Syria, Iran and Russian-occupied parts of Ukraine to evade economic sanctions – and allegedly made it easy for terrorists and criminals to move money.
The billionaire faces jail time when he is sentenced next month.
Do Kwon created two cryptocurrencies that spectacularly collapsed in May 2022, with investors losing an estimated $40bn (£31.7bn) in a matter of days.
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He later went on the run but was captured in Montenegro last year after attempting to fly to Dubai using a fake passport.
A civil fraud trial against Kwon and his company Terraform Labs began this week, with prosecutors warning: “Terra was a fraud, a house of cards, and when it collapsed, investors nearly lost everything.”
Image: Do Kwon created two cryptocurrencies that lost tens of billions of dollars – then went on the run. Pic: Reuters
In a way, Bankman-Fried’s sentence marks the end of an era for crypto – when extravagant excesses and a lack of regulatory oversight were the norm.
Bitcoin’s recent gains have been driven by regulated products that allow investors to gain exposure to the cryptocurrency’s price without owning it directly.
And many of these products are offered by established, traditional finance firms like BlackRock, which is the world’s largest asset management company.
A damning report described the rise and fall of FTX as a tale of “hubris, incompetence and greed” – with Bankman-Fried and his inner circle showing little regard for the financial wellbeing of his customers.
Millions of people had their fingers burned, and many will be put off from ever investing in cryptocurrencies again.
But while the industry has learned some lessons, the crypto market’s rapid surge in recent months mean there’s a real risk of another bubble forming – and new bad actors taking advantage of investors looking for a piece of the action.
Ukraine is increasing its number of assault troops in the area, the 7th Rapid Response Corps said on Facebook.
And Ukrainian troops are also working to cut Moscow’s military logistics routes, it added.
The Russian defence ministry also said its forces defeated a team of Ukrainian special forces that headed to Pokrovsk in a bid to prevent Russian forces from advancing further into the city.
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‘Footage of Ukrainian troops after surrendering’
It later posted videos of two Ukrainian troops who, it claimed, had surrendered.
The footage showed the men, one dressed in fatigues and the other in a dark green jacket, sat against a wall in a dark room, as they spoke of fierce fighting and encirclement by Russian forces.
The videos’ authenticity could not be independently verified, and there was no immediate public comment from Kyiv on the Russian ministry’s claims.
Image: Ukrainian police officers on patrol in Pokrovsk. File pic: Reuters
Ukraine’s President Volodymyr Zelenskyy has previously acknowledged that some Russian units had infiltrated the city. But he maintained that Ukraine is tackling them.
He said Russia had deployed 170,000 troops in Ukraine’s eastern Donetsk province, where Pokrovsk is located, in a major offensive to capture the city and claim a big battlefield victory.
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Ukraine’s army chief Oleksandr Syrskyi said on Saturday the situation in Pokrovsk remained “hardest” for Ukrainian forces, who were trying to push Russian troops out.
But he insisted there was no encirclement or blockade as Moscow has claimed.
“A comprehensive operation to destroy and push out enemy forces from Pokrovsk is ongoing. The main burden lies on the shoulders of the units of the armed forces of Ukraine, particularly UAV operators and assault units,” Mr Syrskyi said.
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Why is Ukraine attacking Moscow? What’s behind Putin’s nuclear test?
Why is Pokrovsk important?
One of Moscow’s key aims has been to take all of Ukraine’sindustrial heartland of coal-rich Donbas, which comprises of the Luhansk and Donetsk provinces. Kyiv still controls about 10% of Donbas.
Capturing Pokrovsk, which Russian media has dubbed “the gateway to Donetsk”, and Kostiantynivka to its northeast, would give Moscow a platform to drive north towards the two biggest remaining Ukrainian-controlled cities in Donetsk – Kramatorsk and Sloviansk.
‘Key Russian fuel pipeline struck’
Meanwhile, Ukraine’s military intelligence, known as HUR, has said its forces have hit an important fuel pipeline in the Moscow region that supplies the Russian army.
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Dramatic drone rescue in Ukraine’s kill zone
In a statement on Telegram, HUR said the operation late on Friday was a “serious blow” to Russia’s military logistics.
HUR said its forces struck the Koltsevoy pipeline, which is 250 miles long and supplies the Russian army with gasoline, diesel and jet fuel from refineries in Ryazan, Nizhny Novgorod and Moscow.
The operation, which targeted infrastructure near Ramensky district, destroyed all three fuel lines, HUR said.
The pipeline was capable of transporting up to three million tonnes of jet fuel, 2.8 million tonnes of diesel and 1.6 million tonnes of gasoline annually, HUR said.
Russia ‘targets gas production site’
Also overnight, Russia launched an attack on a gas production site in Poltava, in central Ukraine.
A fire broke out, the local administration said, but no injuries were reported.
Kyiv condemns ‘nuclear terrorism’
Ukraine’s foreign ministry has condemned Russian strikes this week on substations powering some of its nuclear plants.
It accused Russia of carrying out “targeted strikes on such substations” which “bear the hallmarks of nuclear terrorism”.
Elsewhere, a civilian died and 15 more were injured on Saturday morning after Russia struck the Mykolaiv region in southern Ukraine with a ballistic Iskander missile, local official Vitaliy Kim said.
A child was among those hurt in the strike, he added.
The death toll in Jamaica after Hurricane Melissa could rise, with certain communities still marooned from the rest of the island, according to the police chief for the worst-affected area.
Coleridge Minto, superintendent of police for St Elizabeth Parish, told Sky News that his area has recorded six deaths directly related to the hurricane.
“We are hoping there is no more,” he said. “The reality is we have not yet communicated with all our station commanders in some of the other areas and so as soon as we have those reports, we could be hearing of other injuries, other situations that we were not privy to at this moment.”
The UK has pledged a total of £7.5m to assist the Caribbean’s recovery from the hurricane. Aid flights have been arriving over the past couple of days into Jamaica’s two international airports, but it’s not getting to where they need it the most.
Image: Black River has been described as ground zero after Hurricane Melissa swept through it
In the town of Middle Quarters, close to where the hurricane made landfall, Vivienne Bennett is sitting, propped up against a house without a roof. Her right hand is wrapped in a kitchen towel. “I lost my finger in the hurricane,” she says, showing me her finger which is exposed to the bone. “I opened the door of my house to try and escape, and the wind slammed it back and cut my finger off.”
She asks me for painkillers and says she doesn’t have any medication to stave off infection. I ask if she has seen any government aid. “No,” she replies, “we haven’t seen anybody yet, so we’re trying to get some help. I need to get to a hospital but I don’t know how because all the roads are blocked.”
Image: The situation is growing more dire by the day
Her daughter, Leila, has a baby and other children are playing nearby. “We have no nappies, we have no food, we have no water,” Leila says, “it feels like the wilderness here now.”
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The road leading to Black River, the town authorities are referring to as “ground zero” for this disaster, is difficult to pass, but not impossible. A journey from the capital, Kingston, that would usually take two hours, now takes six. We drive through murky floodwater, a couple of feet deep, and through an avenue of twisted bamboo stalks.
On arrival, it’s a desperate scene. People here seem almost shell-shocked, still processing what has happened to them, unsure what to do next. One man walks past our cameraman and holds his hands in the air. “Jamaica needs help,” he says, “it’s been mashed up.” I ask what help he needs. “We need houses, food and water,” he replies.
Black River was once a wealthy town, the first in Jamaica to have electricity. But the storm has laid waste to the main street. The 300-year-old church, the seafront restaurant, the pharmacy, the Chinese supermarket, the whole town has been shredded.
A group of people sit at a bus stop on the seafront surrounded by huge rocks washed up by a 16-foot storm surge. “It’s a disaster, a disaster,” one woman calls out to me.
With communications still down across most of the island, people here have been unable to contact friends and family for five days now.
Image: Black River has been described as ground zero after Hurricane Melissa swept through it
A woman called Inkiru Bernard, who is Jamaican but lives in New York, has been in touch with our team and asked us to try to find her 67-year-old mother, who lives in Black River. She’s not heard from her since the storm.
When we arrive at the address she provides, her mother, Inez McRae, is sitting on the porch. She shows me around what remains of the house where she weathers the storm. The roof is entirely gone, everything is sodden and thick with mud.
“But I’m alive,” she says, “I’ve been spared.” When Inkiru finally sees her mother on a video call, she cries with relief. “Oh mummy,” she says, “I’ve been so worried.”
Image: Ms McRae is thankful of having ‘been spared’
Tanks have been positioned on the main street in Black River and soldiers patrol it after shops and businesses were looted.
The police chief for this area, Coleridge Minto, says he understands the desperation but is urging people to be patient.
“We can appreciate that persons are trying to grab things,” he says, “persons are devastated, but we want to ensure that we maintain law.”
Army helicopters were flying over the disaster zone and some aid is now arriving into Black River. But with other villages still largely cut off from the rest of the island, this situation is growing more dire by the day.
Driving through western Jamaica, it’s staggering how wide Hurricane Melissa’s field of destruction is.
Town after town, miles apart, where trees have been uprooted and roofs peeled back.
Some homes are now just a pile of rubble, and we still don’t know how deadly this storm has been, although authorities warn the death toll will likely rise.
A total of 49 people have died in Melissa’s charge across the Caribbean – 19 in Jamaicaalone.
Image: Roads are still flooded in Jamaica
Image: The storm has blown over telephone poles, which are blocking the roads
My team and I headed from Kingston airport, towards where the hurricane made landfall, referred to as “ground zero” of this crisis.
On the way, it’s clear that so many communities here have been brought to their knees and so many people are desperate for help.
We drive under a snarl of mangled power lines and over huge piles of rocks before reaching the town of Lacovia in Saint Elizabeth Parish.
Image: The hurricane stripped the entire roof off this church
Image: Many children live in homes with caved-in roofs
At the side of the road, beside a battered and sodden primary school, a woman wearing a red shirt and black tracksuit bottoms holds a handwritten sign in the direction of passing cars.
“Help needed at this shelter,” it says. The woman’s name is Sheree McLeod, and she is an admin assistant at the school.
She is in charge of a makeshift shelter in the school, a temporary home for at least 16 people between the ages of 14 and 86.
I stop and ask what she needs and almost immediately she begins to cry.
Image: The primary school that has been housing those with no other place to stay
‘No emergency teams’
“I’ve never seen this in my entire life,” she says. “It’s heartbreaking, I never thought in a million years that I would be in the situation trying to get help and with literally no communication.
“We can’t reach any officials, there are no emergency teams. I’m hoping and praying that help can reach us soon.
“The task of a shelter manager is voluntary and the most I can do is just ask for help in whatever way possible.”
Image: Sheree McLeod pleads for help for those sheltering at the school
Image: At least 16 people currently live at the school, which is being used as a temporary shelter
Sheree shows me the classroom where she and 15 other people rode out the hurricane which she says hung over the town for hours.
They had just a sheet of tarpaulin against the window shutters to try to repel gusts of more than 170mph and a deluge of rain.
They took a white board off the wall to try to get more shelter.
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0:47
Hurricane Melissa was ‘traumatising’
“It was very terrible,” Sheree says. “We were given eight blankets for the shelter and that was it, but there were 16 people.
“Now all their clothes and blankets that they were provided with got damaged. Some people are sleeping in chairs and on wooden desks.”
Her plea for help is echoed across this part of Jamaica.
Image: Toppled-over chairs and rubbish line a classroom in the school
Image: The water tank at the school has run out
As we’re filming a pile of wooden slats that used to be a house, a passing motorcyclist shouts: “Send help, Jamaica needs help now.”
The relief effort is intensifying. After I leave Sheree, a convoy of army vehicles speed past in the direction of Black River, the town at the epicentre of this disaster.
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