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.
Image: 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.
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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.
Image: 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.
Image: Changpeng Zhao has pleaded guilty to money laundering charges. Pic: Reuters
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.”
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.
A gunman suspected of having started a fire to “ambush” firefighters in Idaho and kill them has been named as Wess Val Roley.
The 20-year-old is said to have aspired to become a firefighter before the attack on Sunday, which saw him allegedly perched in a sniper position, firing at the firefighters as they sought to put out a fire, which authorities believe he intentionally started.
Two firefighters were killed and one was injured as they came under gunfire over several hours, according to authorities.
Image: An armoured police vehicle near where the firefighters were attacked. Pic: Reuters
They said the incident took place after they asked him to move his vehicle.
Roley was later found dead in the mountains with a firearm nearby.
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Sky News’ US partner network NBC quoted Roley’s grandfather,Dale Roley, as saying “something must have snapped” in his grandson for him to commit such violence.
“He actually really respected law enforcement,” Mr Roley said. “He loved firefighters. It didn’t make sense that he was shooting firefighters. Maybe he got rejected or something.”
Mr Roley added: “I know he had been in contact to get a job with a fire department.
“He wanted to be part of a team that he sort of idolised.”
Bob Norris, the sheriff of Kootenai County, said on Sunday: “We do believe that the suspect started the fire.
“This was a total ambush. These firefighters did not have a chance.”
Image: The firefighters were responding to a blaze. Pic: Reuters
Officers said they were “taking sniper fire” near the city of Coeur d’Alene on Sunday afternoon, with crews responding to a fire at Canfield Mountain.
Mr Norris said the gunman had used high-powered sporting rifles to fire rapidly at first responders. The ambush continued for several hours.
More than 300 officers from city, county, state and federal levels responded. Two helicopters were deployed with snipers onboard.
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Donald Trump has launched his latest attack on the US central bank, saying the interest rate setters had “failed”.
Over the weekend, he said he wanted interest rates to be 1% and that he would “love” for Jerome Powell, the chair of the Federal Reserve, to resign.
It comes less than two weeks since he called Mr Powell a “stupid person” and said: “Maybe I should go to the Fed. Am I allowed to appoint myself at the Fed?”
In a post on his Truth Social platform on Monday, Mr Trump said: “Jerome ‘Too Late’ Powell, and his entire board, should be ashamed of themselves for allowing this to happen to the United States.”
It was not clear what Mr Trump was referring to when referencing “this”.
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“If they were doing their job properly, our country would be saving trillions of dollars in interest cost. The board just sits there and watches, so they are equally to blame,” the post read.
“We should be paying 1% interest, or better!”
A message to Mr Powell was also written on a leaderboard of countries’ interest rates, ranked from low to high, showing the US ranked 35th, coming behind the United Arab Emirates and the UK.
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The Federal Reserve, known as the Fed, had held the cost of borrowing at 4.25%-4.5%. Unlike the UK, the US interest rate is a range to guide lenders rather than a single percentage.
Despite the threats from Mr Trump and from his press secretary Karoline Leavitt, who told reporters inflation was “completely diminished”, markets are not expecting a cut when the Fed next considers interest rates next month.
In fact, no reduction is currently anticipated until September.
Are interest rates really that high in the US?
Not since December last year has the rate been cut.
The Fed has expressed concern about the impact of Mr Trump’s signature economic policy of implementing new tariffs, taxes on imports to the US.
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Trump’s tariffs: What you need to know
Inflation – the overall rate of price rises – has ticked up to 2.4% while the Fed said it expected further rises due to tariffs.
Interest rates have been hiked in an effort to bring inflation down to the Fed’s 2% target.
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It has meant the cost of borrowing is slightly higher than in the UK, where the Bank of England has set rates at 4.25%.
It’s also above the level of euro-using countries, where the European Central Bank has set rates at 2%.
What’s the reaction been?
Mr Powell has not retaliated, and the Fed declined to comment on Monday.
There was little market reaction as major US stock indexes had hit record highs amid hopes of trade deals with countries, rather than a return of country-specific tariffs.
Ironically, the dollar has been at a more than three-year low over worries of the US deficit expanding further with Mr Trump’s so-called “Big, Beautiful Bill” being voted on.
The fact that interest rate cuts could come in recent months is also contributing, as currencies tend to be supported by higher rates as they can attract foreign investment.
In the past, comments about replacing Mr Powell, appointed by President Trump in 2017, have led to concern from investors, which saw Mr Trump say he would not replace the chair before his term ends in May 2026.
Donald Trump has said the US government has found a buyer for TikTok that he will reveal “in about two weeks”.
The president told Fox News “it’s a group of very wealthy people”, adding: “I think I’ll probably need China approval, I think President Xi will probably do it.”
TikTok was ordered last year to find a new owner for its US operation – or face a ban – after politicians said they feared sensitive data about Americans could be passed to the Chinese government.
The video app’s owner, Bytedance, has repeatedly denied such claims.
It originally had a deadline of 19 January to find a buyer – and many users were shocked when it “went dark” for a number of hours when that date came round, before later being restored.
However, President Trump has now extended the deadline several times.
The last extension was on 19 June, when he signed an executive order pushing it back to 17 September.
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Mr Trump’s latest comments suggest multiple people coming together to take control of the app in the US.
Among those rumoured to be potential buyers include YouTube superstar Mr Beast, US search engine startup Perplexity AI, and Kevin O’Leary – an investor from Shark Tank (the US version of Dragons’ Den).
Bytedance said in April that it was still talking to the US government, but there were “differences on many key issues”.
It’s believed the Chinese government will have to approve any agreement.
Image: The president said the identity of the buyer would be disclosed in about two weeks. Pic: Fox News
President Trump’s interview with Fox News also touched on the upcoming end of the pause in US tariffs on imported goods.
On April 9, he granted a 90-day reprieve for countries threatened with a tariff of more than 10% to give them time to negotiate.
Deals have already been struck with some countries, including the UK.
The president said he didn’t think he would need to push back the 9 July deadline and that letters would be sent out imminently stating what tariff each country would face.
“We’ll look at the deficit we have – or whatever it is with the country; we’ll look at how the country treats us – are they good, are they not so good. Some countries, we don’t care – we’ll just send a high number out,” he said.
“But we’re going to be sending letters out starting pretty soon. We don’t have to meet, we have all the numbers.”
The president announced the tariffs in April, arguing they were correcting an unfair trade relationship and would return lost prosperity to US industries such as car-making.