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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
Image:
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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Venezuela accuses Trump of ‘colonial threat,’ after US president ‘closes’ its airspace

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Venezuela accuses Trump of 'colonial threat,' after US president 'closes' its airspace

Venezuela has accused Donald Trump of making a “colonial threat,” after the US president said the airspace “above and surrounding” the country should be considered closed “in its entirety”.

Mr Trump made the declaration amid growing tensions with president Nicolas Maduro – and as the US continues attacking boats it claims are carrying drugs from Venezuela.

He wrote on Truth Social: “To all Airlines, Pilots, Drug Dealers, and Human Traffickers, please consider THE AIRSPACE ABOVE AND SURROUNDING VENEZUELA TO BE CLOSED IN ITS ENTIRETY.”

Air traffic above Venezuela on Saturday afternoon. Pic: FlightRadar24
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Air traffic above Venezuela on Saturday afternoon. Pic: FlightRadar24

Venezuela’s foreign affairs office called it a “colonial threat” and “illegal, and unjustified aggression,” and accused the president of threatening “the sovereignty of the national airspace… and the full sovereignty of the Venezuelan state”.

It added that Mr Trump’s words were part of a “permanent policy of aggression against our country” that breached international law and the UN Charter.

The Pentagon and the White House have so far not given any additional detail on the president’s statement, but it marks the latest escalation in tensions between the North and South American countries

Last week, the American aviation regulator warned of a “potentially hazardous situation” over Venezuela due to a “worsening security situation”.

Nicolas Maduro is widely considered a dictator by the West. Pic: Reuters
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Nicolas Maduro is widely considered a dictator by the West. Pic: Reuters

Venezuela then revoked operating rights for six major airlines, which went on to suspend flights to the country.

Mr Trump warned a few days ago that land operations against alleged Venezuelan drug traffickers would begin “very soon”.

Such a move would be a major escalation in Operation Southern Spear – the US naval deployment in the Caribbean Sea and eastern Pacific that has so far attacked at least 21 vessels.

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Three killed as US strikes another alleged drug boat

Venezuela has said the attacks, which have killed more than 80 people, amount to murder.

The US has released videos of boats being targeted, but hasn’t provided evidence – such as photos of their cargo – to support the smuggling claims.

Read more:
Trump may have another motive in war on drugs
The US-Venezuela crisis explained

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Venezuela claims Trump creating ‘fables’ to justify ‘war’

The Pentagon has sought to justify the strikes by labelling the drug gangs as “foreign terrorist organisations” – putting them on par with the likes of al Qaeda.

It claims the boats targeted are carrying drugs bound for the US, although Sky’s chief correspondent says the final destination is likely to be Europe and West Africa.

The US is also offering a reward of $50m for the arrest of the Venezuelan president, who has been indicted in American courts on federal charges of narco-terrorism and conspiracy to import cocaine.

Mr Maduro has denied Mr Trump’s claims that he is involved in the drugs trade himself and said his counterpart wants to oust him so he can install a more sympathetic government.

Venezuelan officials have also claimed Mr Trump’s true motivation is access to the country’s plentiful oil reserves.

Mr Maduro, who has been president since 2013, has been accused of being a dictator who has cheated in elections.

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Police vow to ‘hunt down animals’ behind mass shooting at children’s birthday party in California

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Police vow to 'hunt down animals' behind mass shooting at children's birthday party in California

Police have vowed to “hunt down” the “animals” behind a mass shooting at a children’s birthday party in California.

Three children and a 21-year-old died in Saturday’s shooting at a banquet hall, with 11 more injured.

“We all know that there are people out there [who] are violent and commit violent crimes,” said Patrick Withrow, sheriff of San Joaquin County.

“But these animals walked in and shot children at a children’s birthday party.”

Bystanders watch at the scene of the shooting in Stockton, California. Pic: AP
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Bystanders watch at the scene of the shooting in Stockton, California. Pic: AP

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Children killed in birthday party shooting

Officers were called to the banquet hall in Stockton just before 6pm local time (2am UK time).

Around 100-150 people had gathered to celebrate a child’s birthday.

The sheriff told reporters he had been at a Thanksgiving celebration in Oregon during the incident but “put down my grandbabies to come hunt down these animals who took somebody else’s babies away from them”.

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Investigators examine the scene on Sunday. Pic: AP
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Investigators examine the scene on Sunday. Pic: AP

A man walks near the remains of flares near the site of Saturday's shooting. Pic: Bronte Wittpenn/San Francisco Chronicle/AP
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A man walks near the remains of flares near the site of Saturday’s shooting. Pic: Bronte Wittpenn/San Francisco Chronicle/AP

He appealed for the public to send in “any little bit” of information that could lead to the arrest of the gunmen.

“If you know anything about this, you have to come forward and tell us what you know.”

There is currently nobody in custody over the incident.

First responders attending. Pic: AP
Image:
First responders attending. Pic: AP

Although the investigation is still under way, Sheriff Withrow said there appeared to have been “multiple shooters” who began the attack indoors and then moved outside.

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The shooting was “not a random act”, he said. “They walked into this area and were probably looking for somebody in particular.”

He confirmed that guns had been found on the roof of a nearby building but it was too early to say whether they were “related to this crime”.

Police have also towed multiple cars in the area, some damaged with bullet holes, in case they can be used as evidence.

“Please continue to give us more information,” he said, “and we will follow every single lead.”

A vigil was held for the victims on Sunday, according to local media, with the entire local council in attendance.

On Saturday, Stockton mayor Christina Fugazi said that “families should be together instead of at the hospital, standing next to their loved one, praying that they survive”.

California governor Gavin Newsom’s office added that he had been briefed on the “horrific shooting”.

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Children killed in mass shooting at birthday party in Stockton, California

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Children killed in mass shooting at birthday party in Stockton, California

Children are among the fatalities in a mass shooting at a child’s birthday party in California.

Police said four people had died and 10 were wounded in the incident in Stockton, about 60 miles east of San Francisco.

Officers were called on Saturday to a banquet hall just before 6pm local time (2am UK time) and district attorney Ron Freitas said children were among the dead.

He said the attacker was still at large.

First responders walk through a parking lot near the scene of a mass shooting in Stockton, California. Pics: AP
Image:
First responders walk through a parking lot near the scene of a mass shooting in Stockton, California. Pics: AP

“We can confirm at this time that approximately 14 individuals were struck by gunfire, and four victims have been confirmed deceased,” San Joaquin County Sheriff’s Office said on X.

The post said early indications suggest it could be a “targeted incident” but that information remains limited.

Police have so far not disclosed the attacker’s identity and the motive is unclear.

Stockton’s vice mayor Jason Lee confirmed on Facebook that the shooting on Lucile Avenue happened at a child’s birthday party.

Pics: AP
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Pics: AP

Mayor Christina Fugazzi also said that “families should be together instead of at the hospital, standing next to their loved one, praying that they survive”.

California governor Gavin Newsom’s office added that he had been briefed on the “horrific shooting”.

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