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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.

Larry David appeared in an advert for FTX during the Super Bowl in 2022
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Larry David appeared in an advert for FTX during the Super Bowl in 2022

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.

A year later, a jury convicted the fallen entrepreneur of fraud and money laundering after just five hours of deliberations – based on evidence from close colleagues who had turned against him.

Now, “SBF” is beginning a lengthy prison sentence of 25 years for what prosecutors have described as “one of the biggest financial frauds in American history”.

His punishment may be little comfort to five million FTX customers who were suddenly locked out of their accounts as the company entered bankruptcy – and are yet to receive any compensation.

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November: ‘Crypto king’ guilty of fraud

An estimated 80,000 of Bankman-Fried’s victims were based in the UK. Some of them had millions of pounds tied up in the company after entrusting him with their life savings.

While slick marketing campaigns had presented FTX as a safe way to invest in volatile cryptocurrencies, the reality behind the scenes couldn’t have been more different.

Secret back doors had been established that allowed SBF’s other company, Alameda Research, to access money belonging to FTX customers and make risky bets without their knowledge.

Meanwhile, executives were spending lavishly. Private jets ferried Amazon orders from Miami to the firm’s headquarters in the Bahamas, £12m was spent on luxury hotel stays in just nine months, and employees in the US were allowed to order £160 of food deliveries each a day.

The fallout from FTX’s demise also reaches as far as the White House. Bankman-Fried was one of the largest donors to Joe Biden’s campaign in 2020, with the president subsequently facing pressure to return millions of dollars.

Read more:
Who is Sam Bankman-Fried?
SBF ‘wanted to be US president’

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

A new chief executive has been tasked with untangling where all the money went. Soon after FTX went under, he said: “Never in my career have I seen such a complete failure of corporate controls.”

Unusually, and thankfully, FTX victims are expected to be compensated in full eventually – kind of.

The payouts they receive will be based on what cryptocurrencies were worth in November 2022. But Bitcoin was trading at £16,000 back then and is now worth £55,500.

Bizarre plans to bring FTX out of bankruptcy and reopen the exchange have also been abandoned.

Other entrepreneurs in this space – who had loyal, cult-like followings and huge profiles – are also facing jail time.

Changpeng Zhao has pleaded guilty to money laundering charges. Reuters
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Changpeng Zhao has pleaded guilty to money laundering charges. Pic: Reuters

Changpeng Zhao, who ran the world’s biggest crypto exchange Binance, sensationally resigned last year after pleading guilty to money laundering violations in the US.

His company had allowed individuals in Syria, Iran and Russian-occupied parts of Ukraine to evade economic sanctions – and allegedly made it easy for terrorists and criminals to move money.

The billionaire faces jail time when he is sentenced next month.

Do Kwon created two cryptocurrencies that spectacularly collapsed in May 2022, with investors losing an estimated $40bn (£31.7bn) in a matter of days.

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He later went on the run but was captured in Montenegro last year after attempting to fly to Dubai using a fake passport.

A civil fraud trial against Kwon and his company Terraform Labs began this week, with prosecutors warning: “Terra was a fraud, a house of cards, and when it collapsed, investors nearly lost everything.”

Do Kwon created two cryptocurrencies that lost tens of billions of dollars - then went on the run. Pic: Reuters
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Do Kwon created two cryptocurrencies that lost tens of billions of dollars – then went on the run. Pic: Reuters

In a way, Bankman-Fried’s sentence marks the end of an era for crypto – when extravagant excesses and a lack of regulatory oversight were the norm.

Bitcoin’s recent gains have been driven by regulated products that allow investors to gain exposure to the cryptocurrency’s price without owning it directly.

And many of these products are offered by established, traditional finance firms like BlackRock, which is the world’s largest asset management company.

A damning report described the rise and fall of FTX as a tale of “hubris, incompetence and greed” – with Bankman-Fried and his inner circle showing little regard for the financial wellbeing of his customers.

Millions of people had their fingers burned, and many will be put off from ever investing in cryptocurrencies again.

But while the industry has learned some lessons, the crypto market’s rapid surge in recent months mean there’s a real risk of another bubble forming – and new bad actors taking advantage of investors looking for a piece of the action.

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Ukrainians are appalled at Trump’s naive and cack-handed diplomacy

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Ukrainians are appalled at Trump's naive and cack-handed diplomacy

For Ukrainians, the spectacle of Vladimir Putin and Donald Trump meeting in Alaska will be repugnant.

The man behind an unprovoked invasion of their country is being honoured with a return to the world stage by the leader of a country that was meant to be their ally.

And they feel let down.

Follow latest updates from Ukraine war

President Trump had threatened severe sanctions on Russia within 50 days if Russia didn’t agree to a deal. He had seemed close to imposing them before letting Putin wriggle off the hook yet again.

But they are not surprised. At every stage, Trump has either sided with Russia or at least given them the benefit of the doubt.

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‘Putin won’t mess around with me’

It is clear that Putin has some kind of hold over this American president, in their minds and many others.

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Ukraine wants three things out of these talks. A ceasefire, security guarantees and reparations. It is not clear at this stage that they will get any of them.

Ukrainians and their European allies are appalled at the naive and cack-handed diplomacy that has preceded this meeting.

Vladimir Putin is sending a team of foreign affairs heavyweights, adept at getting the better of opponents in negotiations.

There are, the Financial Times reported this week, no Russia specialists left at the Trump White House.

Instead, Trump is relying on Steve Witkoff, a real estate lawyer and foreign policy novice, who has demonstrated a haphazard mastery of his brief and breathtaking credulity with the Russians.

Former British spy chief Sir Alex Younger described him today as totally out of his depth. Trump, he says, is being played like a fiddle by Putin.

Read more:
What could Ukraine be asked to give up?
What to expect from pivotal Ukraine summit

There is a fundamental misunderstanding of the conflict at the heart of the Trump administration’s handling of it. Witkoff and the president see it in terms of real estate. But it has never been about territory.

Vladimir Putin has made it abundantly clear that Ukraine’s existence as a sovereign democratic entity cannot be tolerated. He has made no pretence that his views on that have changed.

Ukrainians know that and fear any deal cooked up in Alaska will be used by Putin on the path towards that ultimate goal

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Melania Trump threatens to sue Hunter Biden for $1bn over Epstein comments

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Melania Trump threatens to sue Hunter Biden for bn over Epstein comments

Melania Trump has threatened to sue Hunter Biden for more than $1bn (£736.5m) in damages if he does not retract comments linking her to Jeffrey Epstein.

Mr Biden, who is the son of former US president Joe Biden, alleged in an interview this month that sex trafficker Epstein introduced the first lady to President Donald Trump.

“Epstein introduced Melania to Trump. The connections are, like, so wide and deep,” he claimed.

Ms Trump’s lawyer labelled the comments false, defamatory and “extremely salacious” in a letter to Mr Biden.

Hunter Biden. File pic: AP
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Hunter Biden. File pic: AP

Her lawyer wrote that the first lady suffered “overwhelming financial and reputational harm” as the claims were widely discussed on social media and reported by media around the world.

The president and first lady previously said they were introduced by modelling agent Paolo Zampolli at a New York Fashion Week party in 1998.

Mr Biden attributed the claim that Epstein introduced the couple to author Michael Wolff, who was accused by Mr Trump of making up stories to sell books in June and was dubbed a “third-rate reporter” by the president.

The former president’s son doubled down on his remarks in a follow-up interview with the same YouTube outlet, Channel 5 with Andrew Callaghan, entitled “Hunter Biden Apology”.

Asked if he would apologise to the first lady, Mr Biden responded: “F*** that – that’s not going to happen.”

He added: “I don’t think these threats of lawsuits add up to anything other than designed distraction.”

Ms Trump’s threat to sue Mr Biden echoes a strategy employed by her husband, who has aggressively used legal action to go after critics.

Public figures like the Trumps must meet a high bar to succeed in a defamation suit like the one that could be brought by the first lady if she follows through with her threat.

In his initial interview, Mr Biden also hit out at “elites” and others in the Democratic Party, who he claims undermined his father before he dropped out of last year’s race for president.

Read more from Sky News:
What to expect from Trump-Putin summit
National Guard on streets of Washington DC

The letter threatening legal action against Mr Biden is dated 6 August and was first reported by Fox News Digital.

It was addressed to Abbe Lowell, a lawyer who has represented Mr Biden in his criminal cases. Mr Lowell has not yet commented on the letter.

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Trump claims Epstein ‘stole’ Virginia Giuffre

Read more: What you need to know about Trump, Epstein and the MAGA controversy

This comes as pressure on the White House to release the Epstein files has been mounting for weeks, after he made a complete U-turn on his administration’s promise to release more information publicly.

The US Justice Department, which confirmed in July that it would not be releasing the files, said a review of the Epstein case had found “no incriminating ‘client list'” and “no credible evidence” the jailed financier – who killed himself in prison in 2019 – had blackmailed famous men.

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Trump’s pride vs Putin’s legacy: What to expect from pivotal Ukraine summit

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Trump's pride vs Putin's legacy: What to expect from pivotal Ukraine summit

Donald Trump and Vladimir Putin will meet for the first time in six years on Friday, with a possible deal to end the Ukraine war on the agenda.

Mr Trump has threatened “very severe consequences” if his Russian counterpart doesn’t agree to a ceasefire at the summit, being hosted at a remote US army base in snowy Anchorage, Alaska.

Follow latest updates from Ukraine war

But there are fears they will discuss a deal robbing Ukraine of the land currently occupied by Russia – something Volodymyr Zelenskyy has said he won’t accept.

Here’s what three of our correspondents think ahead of the much-anticipated face-to-face.

Putin’s legacy is at stake – he’ll want territory and more
By Ivor Bennett, Moscow correspondent, in Alaska

Putin doesn’t just want victory. He needs it.

Three and a half years after he ordered the invasion of Ukraine, this war has to end in a visible win for the Russian president. It can’t have been for nothing. His legacy is at stake.

So the only deal I think he’ll be willing to accept at Friday’s summit is one that secures Moscow’s goals.

These include territory (full control of the four Ukrainian regions which Russia has already claimed), permanent neutrality for Kyiv and limits on its armed forces.

I expect he’ll be trying to convince Trump that such a deal is the quickest path to peace. The only alternative, in Russia’s eyes, is an outright triumph on the battlefield.

Vladimir Putin and Donald Trump meeting in Osaka in 2019
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Vladimir Putin and Donald Trump meeting in Osaka in 2019

I think Putin‘s hope is that the American president agrees with this view and then gives Ukraine a choice: accept our terms or go it alone without US support.

A deal like that might not be possible this week, but it may be in the future if Putin can give Trump something in return.

That’s why there’s been lots of talk from Moscow this week about all the lucrative business deals that can come from better US-Russia relations.

The Kremlin will want to use this opportunity to remind the White House of what else it can offer, apart from an end to the fighting.

Read more:
What could Ukraine be asked to give up?
Trump-Putin summit starting to feel quite ‘Midnight Sun’

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What will Kyiv be asked to give up?

Ukraine would rather this summit not be happening
By Dominic Waghorn
, international affairs editor, in Ukraine

Ukraine would far rather this meeting wasn’t happening.

Trump seemed to have lost patience with Putin and was about to hit Russia with more severe sanctions until he was distracted by the Russian leader’s suggestion that they meet.

Ukrainians say the Alaska summit rewards Putin by putting him back on the world stage.

But the meeting is happening, and they have to be realistic.

Most of all, they want a ceasefire before any negotiations can happen. Then they want the promise of security guarantees.

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Does Europe have any power over Ukraine’s future?

That is because they know that Putin may well come back for more even if peace does break out. They need to be able to defend themselves should that happen.

And they want the promise of reparations to rebuild their country, devastated by Putin’s wanton, unprovoked act of aggression.

There are billions of Russian roubles and assets frozen across the West. They want them released and sent their way.

What they fear is Trump being hoodwinked by Putin with the lure of profit from US-Russian relations being restored, regardless of Ukraine’s fate.

US Army paratroopers train at the military base where discussions will take place. File pic: Reuters
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US Army paratroopers train at the military base where discussions will take place. File pic: Reuters

That would allow Russia to regain its strength, rearm and prepare for another round of fighting in a few years’ time.

Trump and his golf buddy-turned-negotiator Steve Witkoff appear to believe Putin might be satisfied with keeping some of the land he has taken by force.

Putin says he wants much more than that. He wants Ukraine to cease to exist as a country separate from Russia.

Any agreement short of that is only likely to be temporary.

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Zelenskyy: I told Trump ‘Putin is bluffing’

Trump’s pride on the line – he has a reputation to restore
By
Martha Kelner, US correspondent, in Alaska

As with anything Donald Trump does, he already has a picture in his mind.

The image of Trump shaking hands with the ultimate strongman leader, Vladimir Putin, on US soil calls to his vanity and love of an attention-grabbing moment.

There is also pride at stake.

Joint Base Elmendorf-Richardson in Alaska, where Trump will meet his Russian counterpart. File pic: Reuters
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Joint Base Elmendorf-Richardson in Alaska, where Trump will meet his Russian counterpart. File pic: Reuters

Trump campaigned saying he would end the Russia-Ukraine war on his first day in office, so there is an element of him wanting to follow through on that promise to voters, even though it’s taken him 200-plus days in office and all he’s got so far is this meeting, without apparently any concessions on Putin’s end.

In Trump’s mind – and in the minds of many of his supporters – he is the master negotiator, the chief dealmaker, and he wants to bolster that reputation.

He is keen to further the notion that he negotiates in a different, more straightforward way than his predecessors and that it is paying dividends.

So far, despite sanctions on Russia, despite warnings and deadlines, the situation in Ukraine is only getting worse.

He’s hoping that this meeting, simply the act of sitting down with Putin, can change the tide.

The Russian president may have different ideas.

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