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.
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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.
Crypto king’s jail term is end of an era
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.
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.
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.
Image: 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.
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.
Image: 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.
Image: 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.
Sean “Diddy” Combs’s public persona was that of a “charismatic” hip-hop mogul – but behind the scenes he forced women into “freak off” sexual encounters with escorts and blackmailed them with videos, prosecutors alleged during the first day of his trial.
In the courtroom in Manhattan, New York, Combs blew a kiss to his mother and family members supporting him, before listening intently as opening statements from the prosecution and defence outlined the details of the high-profile case.
The hip-hop mogul, 55, has pleaded not guilty to charges of sex trafficking, racketeering conspiracy and transportation to engage in prostitution, and strenuously denied all allegations of sexual abuse.
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Sean Combs’s family arrive at court
His defence lawyers say all sexual encounters were consensual and that the case is really about nothing more than Combs’s sexual preferences, which they say should remain private. Combs is a “flawed individual”, they argue, but not a racketeer or a sex trafficker.
The court also heard evidence from two witnesses – a former hotel security guard and a male escort.
But first, prosecutor Emily Johnson gave her opening statement.
“To the public, he was Puff Daddy or Diddy,” she told the court, describing Combs as a “business icon” and “larger than life”.
However, there was another side to the rapper, she says – a side that “ran a criminal enterprise”, she said. He sometimes “called himself the king”, Ms Johnson said, and expected to be treated like one.
“This is Sean Combs,” Ms Johnson told jurors as she pointed at Combs, who leaned back in his chair. “During this trial you are going to hear about 20 years of the defendant’s crimes.”
Those crimes, she said, included kidnapping, arson, drugs, sex crimes, bribery and obstruction.
Image: There are no cameras in the court building, so court artists capture the scenes inside. Sketch: Reuters/Jane Rosenberg
Ms Johnson said Combs beat and sexually exploited his former long-term girlfriend Cassie, who was named in court, and compelled the singer and other women to take drugs and have sex with male escorts.
He threatened to ruin Cassie’s career by publicly releasing videos of these sexual encounters, which were dubbed “freak offs”, jurors heard.
“Her livelihood depended on keeping him happy,” the prosecutor said.
Jurors will hear testimonies from alleged victims who will talk about “some of the most painful experiences of their lives”, Ms Johnson continued. “The days they spent in hotel rooms, high on drugs, dressed in costumes to perform the defendant’s sexual fantasies.”
Image: Combs and Cassie pictured in 2017. Pic: zz/XPX/STAR MAX/IPx 2017/AP
‘This is not a complicated case’
But Teny Geragos, who is on Combs’s defence team, painted a very different picture.
“Sean Combs is a complicated man,” she told the court. “But this is not a complicated case. This case is about love, jealousy, infidelity and money.”
Ms Geragos conceded that Combs could be violent and said she understood some jurors might not condone this, nor his “kinky sex”. But the rapper is “not charged with being mean”, she said, and his lifestyle may have been indulgent, but it was not illegal.
She also claimed Combs’s accusers were motivated by money.
Cassie hotel footage shown in court
Image: Pic: CNN via AP May 2024
After the opening statements, the first witness, Israel Florez, was called to the stand.
Now a police officer in LA, in March 2016, Mr Florez worked as a security guard at a hotel in Los Angeles, where Combs was filmed on CCTV seemingly attacking R&B singer and model Cassie, whose full name is Casandra Ventura.
After CNN aired video of the attack last year, the rapper apologised in a video on social media and said he was “disgusted” by his actions.
Video footage of this incident was shown in court as Mr Florez gave his testimony.
He told the court he recognised Combs after responding to a call of a woman in distress on the sixth floor of the hotel. The rapper was wearing only a towel and socks, Mr Florez told the court, and had “a blank stare, like a devilish stare, just looking at me”.
He said that as he was escorting Ms Ventura and Combs to their room, she indicated she wanted to leave and the rapper told her: “You’re not going to leave.”
Combs then offered him money and told him “don’t tell nobody”, Mr Florez said.
The second witness, Daniel Phillip, used to work as a male escort, the court was told. He said he met Ms Ventura at a hotel in Manhattan, where he thought he was attending a bachelorette party.
However, he said he ended up having sex with Ms Ventura as Combs watched and masturbated, and that he was paid several thousand dollars.
Mr Phillip said he had several subsequent encounters with the then couple, which lasted between an hour and 10 hours, and that he witnessed or heard the rapper being violent on two occasions.
He told the court he did not intervene as Combs was powerful, and that he feared for his life. His evidence will continue tomorrow.
The trial is expected to last about eight weeks. Combs faces up to life in prison if he is convicted.
Hamas has released Edan Alexander, an Israeli soldier who holds American citizenship, as part of ongoing efforts to achieve a permanent ceasefire with Israel.
The 21-year-old was believed to be the last living American hostage in Gaza.
In a statement, Hamas said: ” The Izz ad-Din al-Qassam Brigades released the captured Israeli soldier, Idan Alexander, a US citizen, a short while ago, following contacts with the US administration. This comes as part of the efforts being made by mediators to achieve a ceasefire, open the crossings, and allow aid and relief to reach our people in the Gaza Strip.
Image: Edan Alexander. Pic: Hostages and Missing Families Forum via AP
“This step comes after important contacts in which Hamas demonstrated positivity and high flexibility.
“We affirm that serious and responsible negotiations achieve results in the release of prisoners. However, continuing the aggression prolongs their suffering and may kill them.
“We affirm the movement’s readiness to immediately begin negotiations to reach a comprehensive and sustainable ceasefire agreement, including the withdrawal of the occupation army, the end of the siege, a prisoner exchange, and the reconstruction of the Gaza Strip.
“We urge the Trump administration to continue its efforts to end this brutal war waged by the war criminal Netanyahu against children, women, and defenceless civilians in the Gaza Strip.”
Mr Alexander was transferred to Israel Defence Forces via the Red Cross.
Image: A sign outside a Jewish community centre in Edan Alexander’s home town of Tenafly, New Jersey. File pic: Reuters
An IDF statement said: “The returning hostage is currently being accompanied by IDF special forces on his return to Israeli territory, where he will undergo an initial medical assessment and meet with his family.
“The commanders and soldiers of the Israel Defense Forces salute and embrace the returning hostage as he makes his way home to the State of Israel.
“The IDF Spokesperson’s Unit asks everyone to respect the privacy of the returning hostage and his family.”
Mr Alexander’s parents, who live in the US, made the journey to Israel ahead of the expected release.
The family said they were deeply grateful to US President Donald Trump and his administration for its work to secure the release – and have urged the Israeli government to continue efforts to free all hostages.
Mr Alexander, who is from New Jersey, was 19 when he was taken from his base on the border with Gaza in southern Israel during the Hamas attacks on 7 October 2023.
It has been an extraordinary few hours which may well set the tone for a hugely consequential week ahead.
In the time that it took me to fly from London to Saudi Arabia, where President Donald Trump will begin a pivotal Middle East tour this week, a flurry of news has emerged on a range of key global challenges.
• On the Ukraine war: President Volodymyr Zelenskyy has said he is prepared to meet Russian President Vladimir Putin in Istanbul – this announcement came minutes after Trump urged Zelenskyy to agree to the meeting.
• On the China-US trade war: The White House says the two countries have agreed to a “trade deal”. China said the talks, in Geneva, were “candid, in-depth and constructive”.
All three of these developments represent dramatic shifts in three separate challenges and hint at the remarkable influence the US president is having globally.
This sets the ground for what could be a truly consequential week for Trump’s presidency and his ability to effect change.
On Ukraine, Putin held a late-night news conference at the Kremlin on Saturday at which he made the surprise proposal of talks with Zelenskyy in Istanbul this Thursday.
But he rejected European and US calls for an immediate ceasefire.
The move was widely interpreted as a delay tactic.
Trump then issued a social media post urging Zelenskyy to accept the Russian proposal; effectively to call Putin’s bluff.
The American president wrote: “President Putin of Russia doesn’t want to have a Cease Fire Agreement with Ukraine, but rather wants to meet on Thursday, in Turkey, to negotiate a possible end to the BLOODBATH. Ukraine should agree to this, IMMEDIATELY. At least they will be able to determine whether or not a deal is possible, and if it is not, European leaders, and the U.S., will know where everything stands, and can proceed accordingly! I’m starting to doubt that Ukraine will make a deal with Putin, who’s too busy celebrating the Victory of World War ll, which could not have been won (not even close!) without the United States of America. HAVE THE MEETING, NOW!!!”
“We await a full and lasting ceasefire, starting from tomorrow, to provide the necessary basis for diplomacy. There is no point in prolonging the killings. And I will be waiting for Putin in Türkiye on Thursday. Personally. I hope that this time the Russians will not look for excuses,” Zelenskyy wrote on X.
The prospect of Putin and Zelenskyy together in Istanbul on Thursday is remarkable.
It raises the possibility that Trump would want to be there too.
Image: President Volodymyr Zelenskyy welcomes other world leaders to Kyiv. Pic: Presidential Office of Ukraine/dpa/AP Images
Israel’s war in Gaza
On Gaza, it’s been announced that US envoy Steve Witkoff will arrive in Israel on Monday to finalise details for the release of Idan Alexander, an Israeli-American hostage being held by Hamas.
The development comes after it was confirmed that Mr Witkoff has been holding discussions with Israel, Qatar and Egypt and, through them, with Hamas.
The talks focused on a possible Gaza hostage deal and larger peace discussions for a ceasefire.
Meanwhile, officials from the United States and China have been holding talks in Geneva, Switzerland, to resolve their trade war, which was instigated by Trump’s tariffs against China.
Late on Sunday evening, the White House released a statement claiming that a trade deal had been struck.
In a written statement, titled “U.S. Announces China Trade Deal in Geneva”, treasury secretary Scott Bessent said: “I’m happy to report that we made substantial progress between the United States and China in the very important trade talks… We will be giving details tomorrow, but I can tell you that the talks were productive. We had the vice premier, two vice ministers, who were integrally involved, Ambassador Jamieson, and myself. And I spoke to President Trump, as did Ambassador Jamieson, last night, and he is fully informed of what is going on. So, there will be a complete briefing tomorrow morning.”
Beijing Global Times newspaper quoted the Chinese vice premier as saying that the talks were candid, in-depth and constructive.
However, the Chinese fell short of calling it a trade deal.
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In a separate development, US media reports say that Qatar is preparing to gift Trump a Boeing 747 from its royal fleet, which he would use as a replacement for the existing and aging Air Force One plane.
The Qatari government says no deal has been finalised, but the development is already causing controversy because of the optics of accepting gifts of this value.