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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.

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.

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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.

FILE PHOTO: Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. REUTERS/Amr Alfiky/File Photo
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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
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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.

FTX logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
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.

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California mocked over ‘billion-dollar’ bridge to nowhere

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California mocked over 'billion-dollar' bridge to nowhere

Authorities in California have been mocked over a “billion-dollar” bridge to nowhere.

The state government of California has long planned for a Los Angeles to San Francisco high-speed rail project.

Despite initial funding being approved back in 2008, the line is still a long way off and expected to cost over $100bn in total.

So far, construction has only begun on the earliest phase and further funding has been used on environmental planning ahead in the Phase I System.

However, the California High-Speed Rail Authority recently publicised one of the completed sections of construction – finished back in 2018 and reported to cost $1bn on its own.

This is a 0.3-mile stretch of bridge, called The Fresno River Viaduct in Madera County, and it has attracted ridicule for going from nowhere to nowhere.

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Pictures shared by the authority of the bridge show it connected to nothing at either end with some claiming it is indicative of the wider project.

It runs above a road and close to a number of houses – parallel to another rail track – but currently serves no purpose.

Elon Musk poked fun at the recent X post of the construction, with the billionaire posting a crying emoji in response to news of the project.

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Others waded in as well on social media.

However, a number of those criticising it made false claims of the viaduct, its cost and time it took to complete it.

Since it was finished six years ago, after three years of construction, dozens more structures have been completed and there are over a hundred miles in active construction across the project.

Due to the vast scale of high-speed rails, they are often complex, expensive and lengthy projects – with the California High Speed Rail being no different.

The rail would come into use some time in the early 2030s but scrapping it reportedly remains a possibility.

California High Speed Rail has been approached for comment.

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In Washington DC and Gaza two very different families are united by one very rare disease

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In Washington DC and Gaza two very different families are united by one very rare disease

It is a paradox that humanity at its very worst so often also brings out its very best too.

This is a story about the kindness of strangers. It’s a story about hope over hopelessness. It’s about the war in Gaza but also about the rarest of diseases.

It is about two families in worlds far apart. It is a story about two little girls, Julia and Annabel.

I don’t yet know how it will end. But this is how it started.

It was two weeks ago when my phone pinged: a message on Instagram from a friend-of-a-friend. Her name is Nina Frost.

Nina and I first met a few years ago at a party in Washington DC where she had told me about her daughter Annabel, a little girl with an ultra-rare genetic disorder called AHC.

I remember Nina explaining how it was a disease like no other.

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‘The human time bomb disease’ she had called it, based on the all-consuming parental nightmare that their little girl could have a fatal seizure at any moment.

Image:
The Frost family

I’ve followed Nina’s Instagram, @HopeForAnnabel since we first met.

The good news is that Annabel is doing well, albeit with that eternal danger hanging over her. She requires constant care, attention and love.

Nina’s message to me wasn’t about her own daughter. It was about another little girl, in Gaza.

Rare diseases like AHC, which stands for Alternating Hemiplegia of Childhood, generate tight networks; the families living with the condition. Only about 1,000 people worldwide have been diagnosed with AHC. It really is rare.

“There is a little girl stuck in Gaza with the disease,” Nina wrote to me.

“Julia is three – after the last few months she has become paralyzed and unable to eat as her symptoms have worsened dramatically. We are desperate to help as she is massively vulnerable – literally on the brink of death.”

Julia Abu Zaiter is from northern Gaza originally. But with her father Amjad, her mother Maha and her older sister Sham, she was forced south by the Israeli military.
Image:
Julia’s mother administers medication

Nina told me how she and her husband, Simon, are trying to organise the impossible: to get specialist drugs into Gaza and, ultimately, to try to get Julia and her family out.

Nina was modest about an endeavour that I now know has been all-consuming and expensive.

To tell this remarkable story of kindness and hope, I asked Nina to share with me Julia’s father’s number. Our local colleagues in Gaza then tracked the family down to a tent in the southern city of Rafah.

Julia Abu Zaiter is from northern Gaza originally. But with her father Amjad, her mother Maha and her older sister Sham, she was forced south by the Israeli military.

“My girl is three and a half years old. I want her to go out and play with the other children. Now, she cannot move at all,” Julia’s mother told our team, cradling her severely disabled little girl.

Rare diseases like AHC, which stands for Alternating Hemiplegia of Childhood, generate tight networks; the families living with the condition. Only about 1000 people worldwide have been diagnosed with AHC. It really is rare.
Image:
Annabel Frost

Rafah is on Gaza’s southern border with Egypt. Safety is so close and yet beyond reach unless the right strings are pulled with different authorities and governments in a labyrinth of wartime bureaucracy.

The images filmed by our team confirm what Nina had feared in her message to me.

Julia and her family are in the toughest of conditions. The house next to the tent was bombed a few days before our team visited.

The Abu Zaiters are now stuck in the city that could be the next battlefield and with a daughter whose condition is compounded by just the slightest stress, a little girl with, as Nina had told me, the ‘time bomb disease’.

“I told myself ‘it’s over, my girl is gone’,” Julia’s mother told our Gaza team, showing them Julia’s semi-paralysed state.

“Then a man named Simon contacted us and told us he will see if he can help, because his daughter’s situation is similar to mine.”

Five thousand miles away, and a world apart, in a leafy northwest suburb of Washington DC, I am now sitting with Simon, Nina and Annabel.

Julia Abu Zaiter
Image:
Julia Abu Zaiter

It is humbling to listen to their words – about their own daughter, but about their fight for a stranger too.

“Annabel lives with the most challenging condition that we can imagine – a neurological degeneration – and she lives with it with a smile on her face,” Simon says. “And we’re imagining the same for Julia in the most dire of circumstances.”

We look at videos of Julia which Amjad has sent to Simon.

“Our kids are all so similar… we feel a sense of connection to so many families and our world of rare disease,” Nina tells me.

“This is like that but on steroids. I mean, we feel so distressed for the situation that they’re facing.”

“Julia’s circumstances are exponentially worse, but I think we’ve always embraced the idea that we can do something to help, we must do something to help and that we should. I mean, I think it’s always been if not us, then who?” Nina adds.

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Amjad’s message highlights concerns he has about his daughter. He is looking for reassurance from Simon.

Julia is experiencing some severe paralysis and via a translated SMS and a few photos, Amjad wants some encouragement which Simon can’t give.

“They don’t have the medicines they need and the doctors that they need to really treat and properly prevent episodes and to address them when she has them,” Simon says.

“So we’ve been trying to gather a group that can support her. It’s been constant communication and really difficult with the translation issues,” Simon tells me.

Over in Gaza, Julia’s mum is desperate. “Our conditions due to the war are below zero.

“Our situation is horrible. I cannot provide my daughter with any food or drinks. I can get medications through lots of difficulty, and I tell myself that getting these medications is more important than getting food for us.”

Rare diseases like AHC, which stands for Alternating Hemiplegia of Childhood, generate tight networks; the families living with the condition. Only about 1000 people worldwide have been diagnosed with AHC. It really is rare.
Image:
The Frosts speak to Sky’s Mark Stone

Against the odds, Simon has managed to coordinate with the right people to get the right medication into Gaza for Julia.

Through the tight AHC network, one doctor has prompted another who knows another and another. That’s how this works. Threads of kindness stitched together.

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Now the challenge is getting Julia out to Egypt and then on a medical flight to Abu Dhabi. It will be hard, maybe impossible.

“And it seems like she’s really declined,” Nina says looking at the latest videos of Julia.

“I mean, it seems like exactly what we would have predicted has happened. She has gone from being a happy three-year-old with a profoundly difficult disease to being this shell of herself.”

“I feel like I am losing her,” Maha says with Julia in her arms. “She is dying right next to me and I cannot even do anything. The thing I fear the most is losing my daughter.”

There is some chance of an extraction to safety soon. It is not guaranteed but it is some hope for one little girl in a place where uncertainty is all around.

This is a story about two families worlds apart but bound by a disease.

I don’t yet know how it will end. This may feel sometimes like a world of hopelessness, but I have some hope.

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‘Part of the American spirit’: Arrested student denies protests are violent

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'Part of the American spirit': Arrested student denies protests are violent

Much has been said about the students whose protests have gripped America this past week.

Their cause has been framed in polarising ways. A violent Hamas-sympathising mob? Or peace activists striving for equality?

Within a frenzied spectrum of views and noise, one young student sat down with me for a conversation.

Aidan Doyle, 21, is a philosophy and jazz double major at the University of California in Los Angeles (UCLA).

He was arrested early on Thursday morning for being part of an encampment at the university.

He told Sky News he was shocked that the police arrested so many student protesters, despite not intervening in an attack on the protesters by a pro-Israeli group the day before.

Police clash with pro-Palestinian demonstrators on the UCLA campus early on Thursday morning. Pic: AP
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Police clash with pro-Palestinian demonstrators on the UCLA campus on Thursday. Pic: AP

He said his arrest had not deterred him from continuing his protest, which he likened to the Vietnam War demonstrations of the 1960s.

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Mr Doyle rejected the notion, from President Biden, that the protests are not peaceful.

“Graffiti, putting posters up, that’s all peaceful,” he said, commenting on the president’s statement from the White House.

“I also think that President Biden needs to actually take some introspection and realise that maybe the reason so many of these protests are happening is partially due to him.”

Police advance on demonstrators on the UCLA campus Thursday, May 2, 2024, in Los Angeles. (AP Photo/Ryan Sun)
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Police advance on demonstrators on the UCLA campus. Pic: AP/Ryan Sun

Mr Doyle added: “Protests in general are part of the American spirit. They’re part of being an American. And if we were to just stand around in circles and sing and dance, and pretend everything was fine, then nothing would change and nobody would care at all.

“Part of a protest is causing disruption and causing at least a minor level of chaos that is, again, not violent but that actually disrupts things.”

Read more:
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Inside pro-Palestinian protest as police break up UCLA encampment

He denied any accusations of antisemitism, but conceded there is a spectrum of opinion within the movement.

“If you’re going to criticise a movement, I think you have to look at the movement’s goals and their mission, not what fringe members of the group say or do.

“You have to actually look at what we say, what the organisers say, and what is in the mainstream, and what our mission and our goal is: the peace and prosperity of the Palestinian people.”

Asked if he believed in Israel’s right to exist as a country, he said: “I think Jewish sovereignty is incredible. I think it’s an amazing thing.”

Demonstrators are detained on the UCLA campus .
Pic: AP
Image:
Demonstrators are detained on the UCLA campus. Pic: AP

He added: “I think that if there is a country for Jewish people that protects the Jewish people, that is of utmost importance, especially with the vile and rampant antisemitism that exists across the world that I see every day and that I try and combat as much as possible.

“But doing that and then simultaneously repressing another group of people, dehumanising them and brutalising them, then the question of whether your state has the right to exist becomes secondary.”

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