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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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.
Donald Trump has a soft spot for military spectacles and autocrats.
He will be looking on with envy as Vladimir Putin parades both in Moscow today, with Chinese leader Xi Jinping flying in to join Victory Day events in Red Square.
European allies of Ukraine will be watching nervously, wary of anything that could upturn the delicate quest for peace.
President Trump‘s patience with peddling his much vaunted “peace deal” has been wearing thin and allies had feared Ukraine could be punished for it.
That would have been grotesquely unfair, of course. Ukraine has bent over backwards to accommodate Mr Trump’s one-sided diplomacy that has so far seemed to favour the aggressor in this obscene war.
Image: Pic: AP
True, the Trump proposal does not agree to Russian annexation of all the land already taken by force and stops short of ordering the complete demilitarisation of Ukraine, but otherwise the proposals are pretty much everything that Moscow has asked for.
The deal is being pushed by Steve Witkoff, Mr Trump’s golf partner turned chief negotiator, a man regarded by diplomats as out of his depth and lost in the rough when it comes to the arts of statecraft.
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Like his president, Mr Witkoff has a history of doing business with Russian oligarchs, an apparently starry-eyed view of the Russian leader and has called Ukraine a “false country”.
Moment of truth approaching
Mr Witkoff and Mr Trump have so far given Mr Putin the benefit of the doubt, but a moment of truth is approaching. While Ukraine has agreed to a longer ceasefire in principle, Mr Putin will not.
Ukraine’s European allies feared that Mr Trump was about to despair of progress, blame Ukraine and take US military support with him.
Then came the minerals agreement between the US and Ukraine. The breakthrough gave the US president something to show for his efforts and assuaged his desire for some kind of deal. He seems to have moved on for now, at least, and approved the first $50m of arms sales to Ukraine.
Image: Members of the Russian Air Force fly over Red Square during the rehearsal. Pic: AP
But these remain a tense few days ahead with plenty at stake.
The Russian lull is seen here in Kyiv as little more than a ploy.
If the Russian leader was serious about giving peace a chance, they say, he would have signed up to the permanent ceasefire being proposed by the Trump team.
Besides, Russia broke the last truce in Easter as soon as it had begun and used it to carry out surveillance and reinforcement operations says Kyiv. Why risk another pointless pause that is exploited by the invaders?
Escalation possible
If Russia plays the same games this time and Ukraine retaliates, there could be a significant escalation. Likewise, with any Ukrainian drone attack on Moscow during Victory Day.
Any major flare-up will not be looked on favourably by the US president if it upstages his first trip abroad this presidency, a three-day tour of the Middle East.
For now, his attention is not so much on the Ukraine conflict and he is no longer issuing threats to walk away and stop supporting the Ukrainians.
Image: Russian servicemen march towards Red Square in the rehearsal. Pic: AP
On Wednesday, India said it hit nine “terrorist infrastructure” sites, while Pakistansaid it was not involved in the April attack and the sites were not militant bases.
Pakistan’sPrime Minister Shehbaz Sharif has since vowed that India will “now have to pay the price” for their “blatant mistake,” and skirmishes have also been reported along the Line of Actual Control (LAC).
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Speaking to Sky’s The World with Yalda Hakim on Thursday, India’s high commissioner to the UK, Vikram Doraiswami, said “the original escalation is Pakistan’s sponsored terror groups’ attack on civilians”.
India strikes ‘reasonable,’ says high commissioner
He then insisted India’s strikes in Pakistan and Kashmir were “precise, targeted, reasonable and moderate,” adding: “It was focused principally and solely on terrorist infrastructure.
“We made it abundantly clear that the object of this exercise was clearly to avoid military escalation.
“A fact that was actually acknowledged – in a left-handed way of course – by the Pakistani side in terms of their own statements, which said the airspace hadn’t been violated.”
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India awaits Pakistan’s response
Pakistan chose ‘to escalate the matter’
The high commissioner also said about claims Pakistan shot down Indian aircraft with Chinese-made fighter jets: “If it satisfies Pakistan’s ego to say that they’ve done something, they could have used that as an off-ramp to move on.
“Clearly they’ve chosen not to, and they’ve chosen to escalate the matter.”
Image: A boy collects papers from the debris of a damaged house in Gingal village. Pic: Reuters
And when asked about Pakistan’s threats of retaliation, Mr Doraiswami said: “We’re not looking for an escalation, but if Pakistan responds, as we have done, we will respond proportionally and in exactly the same light.”
He then referenced the border skirmishes, saying: “I do want to remind everybody: For the last 15 days, they’ve also opened artillery fire along the Line of Actual Control… That’s led to civilian casualties.”
It comes after India said Pakistan attacked its military stations in the Kashmir region with drones and missiles on Thursday.
The country’s defence ministry said stations at Jammu, Pathankot and Udhampur were “targeted by Pakistani-origin” weapons, and added “the threats were swiftly neutralised”.
There is a long list of demands in the new pope’s in-tray, ranging from the position of women in the church to the ongoing fight against sexual abuse and restoring papal finances.
People both inside the Catholic Church and around the world will be watching how the new pontiff deals with them.
Here, Sky News Europe correspondent Siobhan Robbins takes an in-depth look at the challenges facing the new pontiff.
Sexual abuse
Many Catholic insiders credit Pope Francis with going further than any of his predecessors to address sexual abuse.
He gathered bishops together for a conference on the issue in 2019 and that led to a change that allows cooperating with civil courts if needed during abuse cases.
But it didn’t go as far as forcing the disclosure of all information gathered in relation to child abuse.
Any abuse allegations must now be referred to church leaders, but reformers stopped short of decreeing that such cases should also be automatically referred to the police.
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Clerical abuse victim says church still has ‘so much to do’
While many abuse victims agree they saw progress under Pope Francis, who spent a lot of time listening to their accounts, they say reforms didn’t go far enough.
The next pope will be under pressure to take strong action on the issue.
Image: Newly-elected Pope Leo XIV appears on the balcony of St Peter’s Basilica at the Vatican. Pic: Reuters
Women
Pope Francis also did more to promote women in the Vatican than any other pontiff.
Two years ago, he allowed women to vote in a significant meeting of bishops.
While he was clear he wanted women to have more opportunities, he resisted the idea that they needed to be part of the church hierarchy and didn’t change the rules on women being ordained.
Image: A woman kneels at St. Peter’s Square, on the first day of the conclave to elect the new pope. Pic: Reuters
His successor will need to decide if they push this agenda forward or rein it back in.
It’s a pressing concern as women do a huge amount of the work in schools and hospitals, but many are frustrated about being treated as second-class citizens. 10,000 nuns a year have left in the decade from 2012 to 2022, according to Vatican figures.
Inclusion
“Who am I to judge?” Pope Francis famously said when asked about a gay monsignor in 2013.
His supporters say he sought to make the church more open, including allowing blessings for same sex couples but while critics argue he didn’t go far enough, some conservatives were outraged.
Image: A gay couple kiss at a Catholic protest against the legalisation of gay marriage in Mexico. File pic: Reuters
African bishops collectively rejected blessings for same sex couples, saying “it would cause confusion and would be in direct contradiction to the cultural ethos of African communities”.
How welcome LGBTQ+ people feel in the church will depend partly on decisions made by the pontiff.
Conversely, the Pope must also bring together disparate groups within the Catholic faith.
Many are demanding a leader who can unite the various factions and bring stability in an increasingly unstable world.
The global south
While the Catholic church is losing members in its traditional base of Europe, it’s growing rapidly in the global south.
The area has become the new centre of gravity for Catholicism with huge followings in countries like Brazil, Mexico and the Philippines.
Pope Francis tried to expand representation by appointing more cardinals from different areas of the world, and the new Pope will be expected to continue this.
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Behind the scenes at the conclave
Finance
The Vatican is facing a serious financial crisis.
The budget deficit has tripled since Pope Francis’s election and the pension fund has a shortfall of up to €2bn (£1.7bn).
These money worries, which were compounded by COVID-19 and long-standing bureaucratic challenges, represent a major concern for the next pope.