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.
Read more:
The meteoric rise and even sharper fall of Sam Bankman-Fried
Why industry may never recover from downfall of ‘crypto king’
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.
Dozens of websites, banks and apps are being affected by a major internet outage.
The problem, which started on Monday morning, appears to be related to an issue at Amazon Web Services (AWS).
As of 9.20am, there were more than 2,000 reports of the Amazon Web Services outage in the US alone, according to Downdetector, which monitors issues and outages in real-time.
On its service status page, the company said it was seeing “increased error rates” and delays with “multiple AWS services”.
Here’s what we know so far.
Pic: PA
Pic: PA
Pic: PA
What has been affected?
Multiple banks, the HM Revenue & Customs (HMRC) website, mobile phone networks and video-chatting platform Zoom are among the websites having technical issues.
All Amazon products – including Prime Video and Amazon Music – have also been affected, as well as the main Amazon website.
Here’s a full list of what has been affected by the internet outage, according to Downdetector:
• Snapchat
• Ring
• Roblox
• Amazon Web Services
• Life360
• My Fitness Pal
• Amazon
• Xero
• Signal
• Canva
• Fortnite
• Blink Security
• Zoom
• HMRC
• Clash Royale
• Clash Of Clans
• Asana
• Wordle
• Slack
• Smartsheet
• Epic Games Store
• Duolingo
• Amazon Alexa
• Jira
• Vodafone
• Tidal
• Coinbase
• Atlassian
• IMDB
• Amazon Prime Video
• Pokemon Go
• BT
• Peloton
• EE
• Ancestry
• Square
• Playstation Network
• Eventbrite
• Amazon Music
• Sky
• Flickr
• Hay Day
• Rocket League
• Perplexity AI
• Dead By Daylight
• Bank Of Scotland
• Lloyds Bank
• Halifax
What has AWS said?
AWS confirmed it was suffering from “increased error rates and latencies” for multiple services.
In a statement on its website, the company said: “We are actively engaged and working to both mitigate the issue and understand root cause,” an update on its website says.
“We will provide an update in 45 minutes, or sooner if we have additional information to share.”
The company is posting regular updates on the situation and said its engineers were “immediately engaged” as soon as they spotted the issue.
Concentrated in the US
ThousandEyes, a website that tracks the performance of local and wide area networks, servers and applications, shows many of the outages appear to be concentrated in the US.
A large portion is focused in Virginia, which is widely considered as the global capital for data centres.
Has something like this happened before?
US
Donald Trump mocks ‘No Kings’ protests with AI video of himself dropping brown sludge on protesters from jet
Donald Trump has responded to so-called “No Kings” rallies with an AI video of himself in a fighter jet, pouring brown sludge over protesters.
Millions of people were expected to take part in the demonstrations this weekend – the second such gathering after an initial nationwide day of protest in June coinciding with the US president’s birthday.
The term “No Kings” reflects the belief by some that Mr Trump is behaving like a “king” and some in his administration are depicting him as a monarch.
A protester in costume as Donald Trump presents the president as a prisoner in chains in Seattle. Pic: AP
One of the rallies in New York. Pic: Reuters
On Sunday, the president shared the AI video on his social media platform, Truth Social.
In the clip, an AI-generated version of Mr Trump is wearing a crown and sitting in a jet with “King Trump” written across it, to the soundtrack of Kenny Loggins’ Danger Zone, from the film Top Gun.
The jet then drops thick brown sludge on to AI-generated protesters.
Supporters say the marches are a patriotic defence of free speech, while critics are calling them anti-American.
A large inflatable effigy of Mr Trump in Chicago. Pic: Reuters
This protest took place in Washington DC. Pic: AP
Mr Trump’s Republican Party has dismissed the demonstrations as “Hate America” rallies.
Many of the events featured marching bands, huge banners and signs, as well as effigies of the president and demonstrators wearing inflatable costumes.
Thousands gathered along the waterfront in Portland, Oregon. Pic: AP
Protesters at the Wyoming State Capitol got creative with their signs. Pic: Wyoming Tribune Eagle/AP
The protests follow Mr Trump’s return to the White House and come against the backdrop of a government shutdown which has closed federal programmes and services.
There has also been criticism of what some see as an aggressive executive, confronting Congress and the courts, in ways that protest organisers believe are a slide toward authoritarianism.
This event in San Francisco was among thousands taking place across the US. Pic: Reuters
A ‘No Kings’ sign, outside City Hall in Los Angeles. Pic: Reuters
So far, the atmosphere at most of the protests appears to have been largely energetic and upbeat, with protesters calling for accountability and protections for civil liberties.
Organisers said events would be peaceful – a direct response to Republican and Trump administration claims that the protests could be unsafe.
Two survivors of a US airstrike, targeting what Donald Trump has described as a “drug-carrying submarine” in the Caribbean, have been repatriated to their home countries.
The US president posted footage of Thursday’s operation, part of a recent military campaign targeting boats transporting drugs to America.
“It was my great honor to destroy a very large DRUG-CARRYING SUBMARINE that was navigating towards the United States on a well known narcotrafficking transit route,” Mr Trump wrote on Truth Social.
“US intelligence confirmed this vessel was loaded up with mostly Fentanyl, and other illegal narcotics,” he added.
The US military staged a helicopter rescue for the survivors on Thursday after the strike on their semi-submersible
vessel, suspected of trafficking illegal narcotics. They were then transported to a US Navy warship.
Two other crew members on board were killed.
The semi-submersible vessel was struck by US forces on Thursday, leaving two dead and two survivors. Pic: @realDonaldTrump/Truth Social
President Trump confirmed the survivors would be returned to their home countries of Colombia and Ecuador “for detention and prosecution”. Both countries subsequently confirmed they had been handed over.
“America will not tolerate narcoterrorists trafficking illegal drugs, by land or by sea,” he added.
On Saturday, Colombian President Gustavo Petro posted on X: “We have received the Colombian detained on the narco submarine, we are happy he is alive and he will be processed according to the law.”
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Trump sends CIA into Venezuela and threatens land attack
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Venezuela’s president pleads for peace
Is Trump planning to attack Venezuela?
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The Trump administration has said previous strikes in the Caribbean have killed 27 people, raising concerns among some about the legality of the military operations.
The strikes also come against the backdrop of a US military buildup in the Caribbean that includes guided missile destroyers, F-35 fighter jets, a nuclear submarine and around 6,500 troops as the US president escalates a standoff with the Venezuelan government.
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Venezuelan president: ‘We don’t want a war’
On Wednesday, Mr Trump disclosed he had authorised the CIA to conduct covert operations inside Venezuela, adding to speculation in Caracas that the US is attempting to topple Venezuelan President Nicolas Maduro.
Mr Maduro has denied any connection to drug smuggling and claimed the US boat strikes are a pretext for regime change, and violations of sovereignty and international law.
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