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.
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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.
Hundreds of homes have been damaged and nearly 10,000 are without power after a tornado smashed through parts of Omaha, in the US state of Nebraska.
A number of tornadoes were reported in the state but the worst hit the suburbs to the northwest of the city, which has a population of 485,000.
The homes damaged were mostly in the Elkhorn area, police said, and emergency workers were going door-to-door to help people trapped in the debris.
Elkhorn residents Pat and Kim Woods said they took shelter when the tornado was about 200 yards away.
“We could hear it coming through,” Mr Woods said.
“When we came up, our fence was gone and we looked to the northwest and the whole neighbourhood’s gone.”
Mrs Woods added: “The whole neighbourhood just to the north of us is pretty flattened.”
Near Omaha. Pic: Chris Machian/Omaha World-Herald/AP
Near Omaha. Pic: Chris Machian/Omaha World-Herald/AP
But while some homes in the area were destroyed, others appeared untouched.
There were no reports of deaths but a number of people suffered minor injuries, according to Omaha Police Chief Todd Schmaderer, who added: “People had warnings of this and that saved lives.”
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One of the other tornados passed through parts of Eppley Airfield, the city’s airport, which was closed for almost an hour.
Passengers were sent to storm shelters, according to Omaha Airport Authority Chief Strategy Officer Steve McCoy.
The terminal was not affected but other airport buildings “sustained damage”.
The airport has now reopened, although flight delays are expected late into Friday.
Lincoln. Pic: Kenneth Ferriera/Lincoln Journal Star/AP
North of Waverly. Pic: Chris Machian/Omaha World-Herald/AP
The tornado then crossed the Missouri River into Iowa, where damage reports are still coming through.
Daniel Fienhold, who owns a steakhouse in Crescent, Iowa, said he watched the weather from outside with his daughter and employees.
“It started raining, and then it started hailing, and then all the clouds started to kind of swirl and come together, and as soon as the wind started to pick up, that’s when I headed for the basement, but we never saw it,” he said.
Three workers at an industrial plant were injured when another tornado struck near the Nebraska city of Lincoln on Friday afternoon.
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The building collapsed with around 70 people inside and several had to be rescued from the debris.
The weekend is not likely to bring any relief – The Weather Service has issued tornado watches across parts of Iowa, Kansas, Missouri, Oklahoma and Texas.
Student protests against Israel’s war in Gaza continue to spread across the US, following last week’s arrest of more than 100 demonstrators at Columbia University.
There have been nearly 550 protest-related arrests in the past week at major US universities, according to a tally by news agency Reuters.
The students want universities to cut ties with companies helping Israel’s war in Gaza and, in some cases, with Israel itself.
Some universities have called in police to end the demonstrations, resulting in clashes and arrests, while others appear to be biding their time as the academic semester enters its final days.
Students at Columbia. Pic: Reuters
The University of Southern California cancelled its main graduation ceremony, set for 10 May, after the arrests of 93 people at the Los Angeles campus on Wednesday.
At Boston’s Emerson College, 108 people were arrested overnight with video showing students linking arms to resist officers, who then moved forcefully through the crowd, throwing some students to the ground.
University of Michigan. Pic: Reuters
George Washington University. Pic: Reuters
Student protester Ocean Muir said: “There were just more cops on all sides.
“It felt like we were being slowly pushed in and crushed.”
She said police lifted her by her arms and legs to carry her away and she was charged with trespassing and disorderly conduct.
At Emory University’s Atlanta campus, 28 people were detained and the local branch of activist group Jewish Voice For Peace said police used tear gas and tasers on protesters.
Police there admitted using “chemical irritants” but denied using rubber bullets.
Cheryl Elliott, Emory’s vice president for public safety, said the aim was to clear the area of a “disruptive encampment while holding individuals accountable to the law” but human rights groups questioned the “apparent use of excessive force” against free speech.
Charges were dropped, meanwhile, against 46 of the 60 people detained by police at the University of Texas.
Harvard University. Pic: Reuters
Police arrest a pro-Palestinian protester at USC campus in Los Angeles, California.
Pic: Reuters
Police arrest a pro-Palestinian protester at USC campus in Los Angeles, California.
Pic: Reuters
At Indiana University Bloomington, police with shields and batons shoved into a line of protesters, arresting 33 people.
At City College of New York, police officers retreated from protests, to cheers from the hundreds of students gathered on the lawn on the Harlem campus.
At California State Polytechnic University in Humboldt, students have been barricaded in a campus building since Monday, with staff trying to negotiate.
At University of Connecticut one protester was arrested and tents torn down, while protests continued at Stanford University and the New Jersey campus of Princeton University.
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Harvard University is among those that have not taken action against protesters who have set up tents.
At New York’s Columbia University, where the protest movement began, university officials remain locked in a stalemate with students.
Police cleared tents and arrested more than 100 people last week but students put the tents up again in an area where graduation ceremonies will be held in a few weeks.
The administration has given protesters until Friday to leave.
There have been accusations that some pro-Palestinian protesters have harassed or abused Jewish students but protesters blame outsiders trying to infiltrate and malign their movement.
Protest leaders admit there has been abuse directed at Jewish students but insist the protests are not antisemitic.
Some of the universities have seen counter-protests from Israel supporters.
US
A race against time for Donald Trump as America seeks the whole truth – and nothing but the truth
Two courts aren’t enough – not for Donald Trump, not on a Thursday.
His hush money criminal trial and Supreme Court hearing, legal events one and two, were already under way when he scored the hat-trick.
A New York judge announced he was upholding the verdict and the $83m damages award against Trump for defaming writer E Jean Carroll.
There’s a lot going on, legally, and there’s a lot riding on all of it for Trump.
Catch up: how the day unfolded in court
The hearing at the Supreme Court concerned the 6 January riots, election subversion and Trump’s alleged involvement. It is a crime against democracy, at the serious end of the legal jeopardy he faces.
His lawyers argued he should be shielded by immunity from prosecution for what he did while acting as president.
The prosecution’s case is that he was acting as a private citizen, not in an official capacity.
Trump wasn’t present at the hearing in Washington DC, but he will have liked what he heard.
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The prevailing legal assessment is that discussions with the nine-judge panel indicate that, while they didn’t necessarily agree with his argument for immunity, they have enough questions to delay the prosecution further.
A majority appear to think that presidents have some immunity from criminal prosecution for their official actions, even if the exact parameters are unclear.
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What is clear is that if the trial court is instructed to determine which of Trump’s allegedly illegal acts qualify for immunity as official acts, it will be an extended process that could easily push the trial beyond the November election.
Such a scenario would suit Trump. The less criminal exposure he has before America votes, the better for him.
If he can push the trial past November, and win back the White House, he can use the power of office to make the charges go away.
Pic: Reuters
The New York hush money trial is the only one of four criminal prosecutions to have begun.
The Supreme Court appears set to shorten the odds on it being the only one before America goes to the polls.
It is the pressing matter of the truth, the whole truth and nothing but the truth about the man who would be president, and it’s a race against time.
This stress test of the fundamentals of American democracy and rule of law gets ever more stressful.
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