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.
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.
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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.
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.
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.”
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.
Donald Trump says that when he takes power next month he will direct the US Justice Department to “vigorously pursue” the death penalty.
The US president-elect, 78, said he would do so to protect Americans from what he called “violent rapists, murderers and monsters”.
Mr Trump was responding to President Joe Biden’s decision to commute the sentences of almost all federal inmates on death row – whom Mr Trump called “37 of the worst killers in our country”.
“When you hear the acts of each, you won’t believe that he did this. Makes no sense,” Mr Trump posted on his social media platform Truth Social.
“Relatives and friends are further devastated. They can’t believe this is happening!”
He continued: “As soon as I am inaugurated, I will direct the Justice Department to vigorously pursue the death penalty to protect American families and children from violent rapists, murderers, and monsters.
“We will be a Nation of Law and Order again!”
President Biden, 82, announced on Monday that he would reduce the sentences of 37 of the 40 federal death row prisoners to life in prison without the possibility of parole, saying he was “guided by my conscience and my experience as a public defender”.
The three others the president did not spare are Robert Bowers, who fatally shot 11 people at a Pittsburgh synagogue in 2018; Dylann Roof, who gunned down nine black churchgoers in Charleston, South Carolina, in 2015; and Dzhokhar Tsarnaev, who carried out a 2013 bombing at the Boston Marathon that killed three people and injured almost 300 others.
‘I condemn these murderers’
Despite sparing the lives of 37, Mr Biden added: “Make no mistake: I condemn these murderers, grieve for the victims of their despicable acts, and ache for all the families who have suffered unimaginable and irreparable loss.”
During Mr Trump’s first term in office between 2017 and 2021, the US Justice Department put 13 federal inmates to death.
He has since said he would like to expand capital punishment to include child rapists, migrants who kill US citizens and law enforcement officers, and those convicted of drug and human trafficking.
Mr Biden, who ran for president opposing the death penalty, put federal executions on hold when he took office in January 2021.
His latest decisions come after a coalition of criminal justice advocacy groups, former prosecutors and business leaders wrote letters to the White House asking for Mr Biden to commute the sentences ahead of Mr Trump’s inauguration on 20 January.
Pope Francis also appealed to Mr Biden, who is Catholic, to reduce the sentences to imprisonment.
Unlike executive orders, clemency decisions cannot be reversed by a president’s successor, although the death penalty can be sought more aggressively in future cases.
Denmark has announced plans to boost its defence spending for Greenland with a “stronger presence in the Arctic” – a few hours after Donald Trump repeated his call for the US to buy the vast island.
Danish defence minister Troels Lund Poulsen said the package would amount to a “double-digit billion amount” in krone, or at least $1.5bn (£1.2bn).
He told the Jyllands-Posten newspaper the money would be used to buy two inspection ships, two long-range drones and two sled dog teams as well as more personnel for Denmark’s Arctic Command in the capital Nuuk.
Denmark will also upgrade the Kangerlussuaq Airport so that it can handle F-35 fighter jets.
Greenland, which sits between the Atlantic and Arctic oceans, is 80% covered by an ice sheet and is home to a large US military base.
The world’s biggest island, whose capital is closer to New York than the Danish capital Copenhagen, has mineral, oil and natural gas wealth.
But development has been slow, leaving its economy reliant on fishing and annual subsidies from Denmark.
“For many years, we have not invested sufficiently in the Arctic, now we are planning a stronger presence,” Mr Poulsen said.
He called the timing of the announcement an “irony of fate”, coming just hours after Mr Trump’s latest comments on purchasing the territory.
With the Pituffik air base, Greenland is strategically important for the US military and its ballistic missile early-warning system.
Greenland defiant
The president-elect sparked anger on the territory when he wrote that American ownership and control of the island was an “absolute necessity” for “purposes of national security and freedom throughout the world”.
Its prime minister Mute Egede hit back, saying: “Greenland is ours. We are not for sale and will never be for sale. We must not lose our long struggle for freedom.”
And Danish defence minister Mr Poulsen said: “My response to Trump is the same as the prime minister’s. Greenland does not want to exchange the Commonwealth for other relations. But that is up to Greenland itself.”
Mr Trump also proposed buying Greenland during his first term in office – an idea the Danish Prime Minister Mette Frederiksen called “absurd”.
Greenland has been part of Denmark for more than 600 years and gained autonomy from the country in 1979.
Under Greenland’s self-government act, enacted by Denmark and Greenland in 2009, Greenlanders are recognised as a people or nation entitled to the right of self-determination, with the option of independence.
On Monday, in an announcement naming Ken Howery as his ambassador to Denmark, Mr Trump wrote: “For purposes of national security and freedom throughout the World, the United States of America feels that the ownership and control of Greenland is an absolute necessity.”
He has also threatened to take back control of the Panama Canal, accusing Panama of charging excessive rates to use the waterway, which allows ships to cross between the Pacific and Atlantic oceans.
American Airlines was forced to ground all flights in the US on Christmas Eve due to an unspecified technical issue.
The airline did not immediately say why it was stopping all flights, but social media was quickly abuzz with travellers worrying about getting to their loved ones for the holiday.
A groundstop notice was lifted not long after it was issued, but the possibility of disruption remains with so many flights needing to make up time.
Earlier on Tuesday, the airline said on social media: “An estimated timeframe has not been provided, but they’re trying to fix it in the shortest possible time.”
The Federal Aviation Agency said American Airlines was reporting “a technical issue and has requested a nationwide ground stop”.
In an update on Tuesday afternoon it said: “American Airlines reported a technical issue this morning and requested a nationwide ground stop. The ground stop has now been lifted.”
Passengers on social media reported having their flights stuck on the runway at various airports and being sent back to the gate.
American Airlines operates thousands of flights per day to more than 350 destinations in more than 60 countries.