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.
Please use Chrome browser for a more accessible video player
2:19
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.
Advertisement
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.
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
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.
Reading between the lines of President Trump’s social media posts is an art, not a science.
But whether by intention or not, there is always insight in his posts. His Truth Social words reacting to the Israeli attack on Iran are intentionally ambiguous.
When was he told by Israelthat they would strike Iran? Did he give them a green light, or was it more amber?
Was his insistence, as recently as 48 hours ago, that a strike would “blow” the chances of a deal with Iran actually just a ruse to afford Israel the element of surprise? That’s what the Israelis are claiming.
Image: Mr Trump said he ‘gave Iran chance after chance to make a deal’. Pic: Reuters
Clearly, President Trump does not want to give the impression that his ‘don’t strike’ advice was ignored by Netanyahu.
His social posts are filled with enough ambiguity to allow him to maintain his good cop stance alongside Netanyahu, the bad cop: “I gave Iran chance after chance to make a deal. I told them, in the strongest of words, to ‘just do it’…”
More on Donald Trump
Related Topics:
Trump’s ‘art of the deal’, whether it be in real estate or nuclear weapon negotiations, requires unpredictability and ambiguity.
Both of those, as it happens, are useful to hide ineptitude too. The line between diplomatic masterstroke and disastrous diplomacy is thin.
The president is claiming that the Israeli attacks make a deal more, not less, likely because of the pressure Iran will now be under.
Maybe, but many regional watchers are very unconvinced.
Spotify
This content is provided by Spotify, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spotify cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spotify cookies.
To view this content you can use the button below to allow Spotify cookies for this session only.
An alternative path to negotiations for Iran would be to go fully down the North Korea route, comforted in the knowledge that China – as a big Iranian oil customer – and Russia – as a weapons customer – will be on side.
Trump may think that the pressure of bombardment will force Iran to heel. But the other pressure the Iranian supreme leader is under is the pressure of survival.
Please use Chrome browser for a more accessible video player
2:33
Iran attacks analysed
The Israelis and the Americans are calculating that Iran and its proxies are now sufficiently degraded, and so the response will be limp and containable.
They might be right in terms of conventional attacks, but asymmetrical operations are another fear – against Israeli targets or more broadly, softer Western targets in the region or beyond.
Step back from the chaos of the past 24 hours. The broader picture here is regime change.
Netanyahu said as much in his Friday speech, calling for an internal uprising. He ignored history – which suggests people tend to rally round their flag – but more than that, that foreign air strikes alone don’t work.
Look at Libya in 1986, Iraq in 1991, or Yugoslavia in 1999.
Netanyahu wants to go further. Will he take out the supreme leader? Trump does not want another full-scale conflict in the Middle East. Of all the things he is accused of being, a hawkish warmonger he is not.
But there are plenty of politicians on Capitol Hill – on both sides of the divide – who support regime change in Iran.
I was at an event in Congress in December organised by Iranian exiled opposition leaders. I was struck by the cross-party support for regime change in one form or another.
Israel this weekend announced that its military had achieved total air superiority from western Iran to the capital Tehran. That’s remarkable.
Could Trump be persuaded to pursue regime change? Peace, eventually, through strength? His motto adapted.
We are at yet another unsettlingly tense moment for the region.
A manhunt is under way after a US politician and her husband were shot dead in their home in a “politically motivated assassination” – and another politician and his wife were also shot.
Minnesota state representative Melissa Hortman and her husband were killed at their home, Tim Walz, the governor of Minnesota, confirmed.
State senator John Hoffman and his wife were also shot in their home but are expected to survive. The senator, according to officials, is in a stable condition after emergency surgery.
Image: Representative Melissa Hortman and Senator John Hoffman. Pic: Facebook/Minnesota Legislature
Authorities have confirmed that the suspect they are looking for is 57-year-old Vance Boelter – who, in a press conference, was described as a 6ft 1in white male, with brown hair and brown eyes.
Members of the public have been urged not to approach him as he may be armed.
The suspect was reportedly posing as a police officer, and officials said the alleged attacker escaped after an exchange of gunfire.
Both politicians are members of the Minnesota Democratic-Farmer-Labor Party.
Please use Chrome browser for a more accessible video player
1:08
US politician killed: Governor calls it ‘targeted political violence’
US President Donald Trump, in a statement, said: “I have been briefed on the terrible shooting that took place in Minnesota, which appears to be a targeted attack against State Lawmakers.
“Our Attorney General, Pam Bondi, and the FBI, are investigating the situation, and they will be prosecuting anyone involved to the fullest extent of the law.
“Such horrific violence will not be tolerated in the United States of America.”
Image: John Hoffman and his wife were shot multiple times at their home. Pic: AP
Authorities have urged residents of the Champlin and Brooklyn Park areas to stay in their homes.
In an earlier Facebook post, Mr Walz said: “I’ve been briefed this morning on an ongoing situation involving targeted shootings in Champlin and Brooklyn Park.
“The Minnesota Department of Public Safety and local law enforcement are on the scene. We will share more information soon.”
Image: Former US president Joe Biden with Melissa Hortman. Pic: Instagram/ melissahortman
At a subsequent news conference, Mr Walz said: “We must all, in Minnesota and across the country, stand against all forms of political violence.
“Those responsible for this will be held accountable.”
He has also urged those in Minnesota not to attend political rallies until the suspect is caught.
Police evacuated the Texas State Capitol and grounds in Austin ahead of an anti-Trump protest on Saturday – citing a credible threat to politicians.
Image: Former US vice president Kamala Harris and Melissa Hortman. Pic: Instagram/ melissahortman
Post-mortem examinations will be conducted to determine the extent of their injuries.
However, it is clear that both Ms Hortman and her spouse died from gunshot wounds, Drew Evans, superintendent of the Bureau of Criminal Apprehension, said.
Ms Hortman, a mother of two, was first elected in 2004 – and was the top house Democratic leader in the state legislature. She also served as speaker of the Minnesota House of Representatives.
Mr Hoffman, also a Democrat, was first elected in 2012 – and ran a consulting firm called Hoffman Strategic Advisors.
Hakeem Jeffries, House Democratic leader, has described the shootings as “deeply disturbing” on X, adding that “violence is never acceptable”, and that he is “praying hard” for the victims.
Former Arizona representative, Gabby Giffords, described her friend Ms Hortman as a “true public servant”, who “dedicated her life building a better, safer Minnesota”.
Nancy Pelosi, former speaker of the US House of Representatives, said she was “heartbroken” by the news.
She added: “Unfortunately, we know the tragedy of when political violence hits home very well.
“All of us must remember that it’s not only the act of violence, but also the reaction to it, that can normalise it. This climate of politically-motivated violence must end.”
In a tribute, Democratic National Committee chair Ken Martin said: “Melissa, Mark, John, and Yvette – these are not just names, and this is not just politics.
“These are people. They’re longtime friends to me and Jenn and so many others in Minnesota. They have children, loved ones, neighbors, and friends.”
Mr Martin added: “Today, we recommit ourselves to fight harder for the values that Melissa and Mark embodied – building a kinder, more just, and loving world. If this murderer thinks we will be silenced, he’s wrong.”
US President Donald Trump has revealed details of a one-hour phone call with his Russian counterpart, in which they agreed the conflict between Israel and Iran should end.
Posting on his Truth Social platform, Mr Trump added that he told Vladimir Putin that “his war [in Ukraine] should also end”.
Please use Chrome browser for a more accessible video player
2:33
Iran’s retaliation analysed
The Iranian response has resulted in at least three people killed and dozens of injuries in Israel, according to medics. Iranian state TV, meanwhile, has reported that 20 children are among the 60 killed in a strike on a Tehran neighbourhood on Saturday.
Iranian missiles were seen entering Israeli airspace on Saturday evening.
Meanwhile, RAF jets and military assets are being sent to the Middle East after Tehran warned the UK and other allies their regional bases would be targeted if they helped defend Israel in the growing conflict between the two heavily armed countries.
Please use Chrome browser for a more accessible video player
2:43
Tel Aviv: Buildings and cars destroyed
In his post, Mr Trump said: “President Putin called this morning to very nicely wish me a Happy Birthday, but to more importantly, talk about Iran, a country he knows very well. We talked at length.
“Much less time was spent talking about Russia/Ukraine, but that will be for next week. He is doing the planned prisoner swaps – large numbers of prisoners are being exchanged, immediately, from both sides.
“The call lasted approximately 1 hour. He feels, as do I, this war in Israel-Iran should end, to which I explained, his war should also end.”
Please use Chrome browser for a more accessible video player
7:10
State TV: Children among dozens killed in Iran
Kremlin aide Yuri Ushakov said President Putin condemned Israel’s military operation in Iran and expressed concerns about the risk of escalation.
During the conversation, the Russian leader briefed President Trump on his recent talks with the leaders of Israel and Iran – reiterating Russia’s hopes to seek mutually acceptable solutions on Iran’s growing nuclear issue.
Meanwhile, the latest round of US-Iran nuclear talks scheduled for Sunday in Muscat will not take place, a senior US administration official has told Sky’s US partner network NBC News.
However, the official said the US is “not shutting the door to future discussions”.
“While there will be no meeting on Sunday, we remain committed to talks and hope the Iranians will come to the table soon,” the official said.