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.
US President Donald Trump has been awarded FIFA’s new peace prize at the draw for next year’s World Cup.
FIFA President Gianni Infantino presented Mr Trump with a large golden trophy – formed of hands holding the earth – and a gold medal, which he wore around his neck.
The certificate, which Mr Infantino handed over at Washington DC’s Kennedy Center on Friday, recognises the US president for his actions to “promote peace and unity around the world”.
World football’s governing body, which announced the annual award last month, said it would be given to “individuals who have taken exceptional and extraordinary actions for peace”.
Mr Trump said it was “truly one of the greatest honours of my life”.
He said: “We saved millions and millions of lives. The Congo is an example – over 10 million people killed. It was heading for another 10 million very quickly.”
Image: US President Donald Trump. Pics: Reuters
He also pointed to India and Pakistan, saying, “so many wars that we were able to end, in some cases a little before they started”.
Ahead of the draw, Mr Trump told reporters he did not care about the prize, but noted that he had “settled eight wars” in nearly 11 months in office.
The United States, along with Canada and Mexico, will host the tournament in 2026.
Mr Infantino, who has built up a strong relationship with the US president, backed him for the Nobel Peace Prize earlier this year.
“This is what we want from a leader – a leader that cares about the people,” Mr Infantino said of Mr Trump.
The FIFA leader said to Mr Trump, “this is your prize, this is your peace prize”.
Image: US President Donald Trump and FIFA President Gianni Infantino. Pic: Reuters
Mr Trump thanked his family, including his wife, first lady Melania Trump, and praised the leaders of the other two host nations – Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum – in his brief remarks.
Mr Infantino has often spoken about football as a unifier for the world, but the prize is a departure from the federation’s traditional focus on sport.
FIFA has described the prize as one that rewards “individuals who have taken exceptional and extraordinary actions for peace, and by doing so have united people across the world”.
The award comes during a week where Mr Trump’s administration has been under scrutiny for lethal strikes on alleged drug boats in the Caribbean and as Mr Trump hardens his rhetoric against immigrants.
The Nobel Peace Prize this year was eventually awarded to Venezuelan opposition leader Maria Corina Machado, who said shortly after receiving the prize that she was dedicating it in part to Mr Trump for “his decisive support of our cause”.
Netflix has agreed a $72bn (£54bn) deal to secure Warner Bros Discovery’s film and TV studios and supercharge its library through rights to top franchises including Harry Potter and Game Of Thrones.
It had been reported that the US streaming giant was in exclusive talks over the deal following a bidding war for the assets.
Paramount Skydance and Comcast, the ultimate owner of Sky News, were the rival suitors for the bulk of WBD that also includes HBO, the HBO Max streaming platform and DC Studios.
While Netflix has agreed a $27.75 per share price with WBD, which equates to the $72bn purchase figure, the deal gives the assets a total value of $82.7bn.
It will see WBD come under Netflix ownership once its remaining Discovery Global division, mostly legacy cable networks including CNN and the TNT sports channels, is separated.
However, the agreement is set to attract scrutiny from competition regulators, particularly in the United States and Europe.
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Both WBD and Netflix do not see the prospect of the deal being completed until late 2026 or 2027.
The main stumbling block is likely to be the fact that Netflix, which has hits including Stranger Things and Squid Game, is already the world’s biggest streaming service.
Image: Stranger Things is one of Netflix’s biggest hits. Pic: Netflix
Further drama could come in the form of a complaint by Paramount, which had previously made a bid for the whole company.
CNBC reported this week that Paramount had claimed the auction process was biased in favour of Netflix.
Entertainment news provider Variety has also reported that major studios fear an institutional crisis for Hollywood unless the move is blocked.
Ted Sarandos, the co-chief executive of Netflix, said: “By combining Warner Bros’ incredible library of shows and movies – from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends – with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better.
“Together, we can give audiences more of what they love and help define the next century of storytelling.”
Netflix shares were trading down more than 3% in pre-market deals but recovered much of that loss when Wall Street opened. Those for WBD were up by more than 2%.
David O’Hara, managing director at the advisory firm MKI Global Partners, said of the proposed deal: “The 12-18 month timeline signals a long antitrust review, but despite the overlap between Netflix and HBO Max, there is a path to approval through possible HBO divestment.
“Netflix would not accept a $5.8bn break fee if it didn’t see at least a small chance of the deal closing.”
Four people have been killed in the latest US strike on an alleged drug boat amid growing unease at the legality of the attacks.
The small vessel, which was hit in the eastern Pacific Ocean on Thursday, is the 22nd destroyed by the US military on suspicion of drug trafficking.
It is the first such attack after a pause of nearly three weeks.
At least 87 people have now been killed during Donald Trump‘s “war” with drug cartels, which has also seen vessels targeted in the Caribbean Sea, including near Venezuela.
Image: The vessel explodes in flames. Pic: Reuters
Video of the strike shows a small boat moving across the water before it is suddenly hit by a large explosion.
The boat is then seen engulfed in flames and billowing smoke as the camera zooms out.
On X, formerly known as Twitter, US Southern Command described those killed as “four male narco-terrorists“.
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“Intelligence confirmed that the vessel was carrying illicit narcotics and transiting along a known narco-trafficking route in the Eastern Pacific,” the post said.
The Trump administration has been weighing options to combat what it has portrayed as Venezuelan President Nicolas Maduro‘s role in supplying illegal drugs that have killed Americans.
The socialist leader has denied having any links to the illegal drug trade.
Venezuela has said the boat attacks amount to murder – and that President Trump’s true motivation is to oust Mr Maduro and access its oil.
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It comes as an investigation in Washington DC has started looking into the very first strike on an alleged drug boat on 2 September in international waters near Venezuela.
On that occasion, US navy admiral Frank “Mitch” Bradley is accused of ordering a follow-up strike to kill the survivors.
This reportedly followed demands from defence secretary Pete Hegseth that the navy “kill them all”.
The admiral briefed politicians in a series of closed-door briefings at the US Capitol on Thursday, and denied there was any such order from Mr Hegseth.
Image: Admiral Frank ‘Mitch’ Bradley arrives at the US Capitol for a classified briefing on Thursday. Pic: Reuters
Mr Hegseth said the admiral “made the correct decision to ultimately sink the boat and eliminate the threat”.
But speaking on Air Force One last Sunday, the president said he was unaware of the second strike and would not have wanted it, though he backed Mr Hegseth.
A video of the 2 September strike, which killed 11 people, has been shown to politicians, but accounts of its contents split along party lines.
Republican Senator Tom Cotton of Arkansas said the survivors were “trying to flip a boat loaded with drugs bound for United States back over so they could stay in the fight”.
Image: Donald Trump and Pete Hegseth during a cabinet meeting at the White House on 2 December. Pic: Reuters
His party colleague, representative Rick Crawford of Arkansas, issued a statement saying the strikes were legal.
But representative Jim Himes of Connecticut, the top Democrat on the House Intelligence Committee, said: “What I saw in that room was one of the most troubling things I’ve seen in my time in public service.
“You have two individuals in clear distress, without any means of locomotion, with a destroyed vessel.”
They “were killed by the United States”, he said.
Representative Adam Smith of Washington, the top Democrat on the House Armed Services Committee, echoed his account.
Image: Democrat representative Adam Smith of Washington (L) leaving the briefing. Pic: AP
He said the survivors were “basically two shirtless people clinging to the bow of a capsized and inoperable boat, drifting in the water – until the missiles come and kill them”.
Likewise, Senator Jack Reed of Rhode Island, the top Democrat on the Senate Armed Services Committee, said he was “deeply disturbed” by the video, and called for it to be made public.
“This briefing confirmed my worst fears about the nature of the Trump Administration’s military activities,” he said in a statement.
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Even if the campaign against the suspected drug-trafficking boats had been authorised by Congress, ex-military lawyers said the strike against survivors would be a war crime if the military knowingly killed survivors.
Attacks on combatants who are incapacitated, unconscious or shipwrecked are forbidden by the defence department’s law of war manual – provided the survivors abstain from hostilities and do not attempt to escape.
Firing upon shipwreck survivors is cited as an example of a “clearly illegal” order that should be refused.