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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.

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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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White House: Europe ‘unrecognisable in 20 years or less’

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White House: Europe 'unrecognisable in 20 years or less'

President Trump’s “America First” agenda has been spelt out in a new White House National Security Strategy that should make stark reading for allies and foes of the United States alike.

The new 33-page document outlines an upending of American foreign policy objectives and priorities which have stood largely unchanged through different administrations stretching back decades.

The document says American strategy went “astray” over many years. It seeks to reframe America’s strategic interests as being far narrower now than at any time in its modern history.

Among the key points, the document says:

Europe faces “civilizational erasure” and could be “unrecognisable in 20 years or less”

• “Certain NATO members will become majority non-European” within a few decades

•​​​​​​​ America will “shift away” from the “burden” of the Middle East seeing it now as a “source and destination of international investment”

•​​​​​​​ In the Western hemisphere, America should pursue a policy of “enlist and expand… restoring American pre-eminence”

•​​​​​​​ In Africa, American policy focus should be on trade not “providing and spreading liberal ideology”

America will 'shift away' from the 'burden' of the Middle East. Pic: Reuters
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America will ‘shift away’ from the ‘burden’ of the Middle East. Pic: Reuters

In black-and-white, the text articulates a dramatic strategic shift which has been playing out at lightning speed over the past year.

The document underlines the end of the concept of America as an arbiter of the democratic rules-based order.

“American foreign policy elites convinced themselves that permanent American domination of the entire world was in the best interests of our country. Yet the affairs of other countries are our concern only if their activities directly threaten our interests,” the paper says.

Every US administration publishes at least one National Security Strategy during a presidential term.

The focus of this one is starkly different from that published by President Biden in 2022.

It’s also notably different from the document which President Trump published during his first term. His 2017 paper cast the world as a contest between “repressive regimes” and “free societies”.

Trump doesn't want the US to be the arbiter of the democratic rules-based order. Pic: Reuters
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Trump doesn’t want the US to be the arbiter of the democratic rules-based order. Pic: Reuters

This new one places the necessity to do trade above the imposition of values.

“We seek good relations and peaceful commercial relations with the nations of the world without imposing on them democratic or other social change that differs widely from their traditions and histories.”

Mass migration and Europe

The new document is highly critical of mass migration.

It warns that uncontrolled migration is destroying the concept of nation states which could impact America’s strategic alliances and the countries it counts as reliable allies.

The paper is particularly critical of Europe, of the European Union as a concept and of individual European nations.

“Should present trends continue, the continent will be unrecognizable in 20 years or less,” the paper says.

It continues: “As such, it is far from obvious whether certain European countries will have economies and militaries strong enough to remain reliable allies.

“Many of these nations are currently doubling down on their present path. We want Europe to remain European, to regain its civilizational self-confidence, and to abandon its failed focus on regulatory suffocation.”

Trump will seek to support 'patriotic European parties'. Pic: AP
Image:
Trump will seek to support ‘patriotic European parties’. Pic: AP

The document’s language around the politics of governing parties across Europe is particularly stark.

Regarding Ukraine, the document says: “The Trump Administration finds itself at odds with European officials who hold unrealistic expectations for the war perched in unstable minority governments, many of which trample on basic principles of democracy to suppress opposition.

“A large European majority wants peace, yet that desire is not translated into policy, in large measure because of those government’s subversion of democratic processes.”

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The document outlines how his administration will seek to support “patriotic European parties”.

This is entirely in line with President Trump’s rhetoric but still represents a major departure from the longstanding principle of not interfering in the politics of allies.

It says: “American diplomacy should continue to stand up for genuine democracy, freedom of expression, and unapologetic celebrations of European nations’ individual character and history.

“America encourages its political allies in Europe to promote this revival of spirit, and the growing influence of patriotic European parties indeed gives cause for great optimism.”

Trump has at times had a fiery relationship with Ukraine's President Zelenskyy. Pic: Reuters
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Trump has at times had a fiery relationship with Ukraine’s President Zelenskyy. Pic: Reuters

Ukraine and Russia

On European-Russia relations, the document raises the prospect of war but curiously does not presume that such a conflict would involve America.

“Managing European relations with Russia will require significant US diplomatic engagement, both to reestablish conditions of strategic stability across the Eurasian landmass, and to mitigate the risk of conflict between Russia and European states.”

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By contrast, President Biden’s National Security Strategy, published in 2022, underlined repeatedly the “iron-clad” commitment the United States had to Europe’s security.

Chinese risk and opportunity

The document presents Asia and the Indo-Pacific region as a source of opportunity for strategic and economic cooperation.

Maintaining US military strength over China is also outlined. Pic: Reuters
Image:
Maintaining US military strength over China is also outlined. Pic: Reuters

“President Trump is building alliances and strengthening partnerships in the Indo-Pacific that will be the bedrock of security and prosperity long into the future…”

And specifically on China, the paper presents a goal of “economic vitality” achieved through a balanced economic relationship between the two countries combined with an “ongoing focus on deterrence to prevent war”.

Deterrence would be achieved, it outlines, by maintaining preeminent military strength over China.

It says: “This combined approach can become a virtuous cycle as strong American deterrence opens up space for more disciplined economic action, while more disciplined economic action leads to greater American resources to sustain deterrence in the long term.”

Hemispheres of influence

In line with President Trump’s focus on spheres of influence, particular focus is given to the western hemisphere.

There are clear references to the impact of drugs from south and central America into the US and more subtle references to control of the arctic.

“The United States will reassert and enforce the Monroe Doctrine to restore American pre-eminence in the Western Hemisphere, and to protect our homeland and our access to key geographies throughout the region,” the paper says.

It continues: “We will deny non-Hemispheric competitors the ability to position forces or other threatening capabilities, or to own or control strategically vital assets, in our hemisphere.”

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Donald Trump awarded FIFA peace prize at World Cup draw

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Donald Trump awarded FIFA peace prize at World Cup draw

US President Donald Trump has been awarded FIFA’s new peace prize at the draw for next year’s World Cup.

FIFA President Gianni Infantino presented Mr Trump with a large golden trophy – formed of hands holding the earth – and a gold medal, which he wore around his neck.

The certificate, which Mr Infantino handed over at Washington DC’s Kennedy Center on Friday, recognises the US president for his actions to “promote peace and unity around the world”.

World football’s governing body, which announced the annual award last month, said it would be given to “individuals who have taken exceptional and extraordinary actions for peace”.

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Mr Trump said it was “truly one of the greatest honours of my life”.

He said: “We saved millions and millions of lives. The Congo is an example – over 10 million people killed. It was heading for another 10 million very quickly.”

US President Donald Trump. Pics: Reuters
Image:
US President Donald Trump. Pics: Reuters

He also pointed to India and Pakistan, saying, “so many wars that we were able to end, in some cases a little before they started”.

Ahead of the draw, Mr Trump told reporters he did not care about the prize, but noted that he had “settled eight wars” in nearly 11 months in office.

The United States, along with Canada and Mexico, will host the tournament in 2026.

Mr Infantino, who has built up a strong relationship with the US president, backed him for the Nobel Peace Prize earlier this year.

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“This is what we want from a leader – a leader that cares about the people,” Mr Infantino said of Mr Trump.

The FIFA leader said to Mr Trump, “this is your prize, this is your peace prize”.

US President Donald Trump and FIFA President Gianni Infantino. Pic: Reuters
Image:
US President Donald Trump and FIFA President Gianni Infantino. Pic: Reuters

Mr Trump thanked his family, including his wife, first lady Melania Trump, and praised the leaders of the other two host nations – Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum – in his brief remarks.

Mr Infantino has often spoken about football as a unifier for the world, but the prize is a departure from the federation’s traditional focus on sport.

FIFA has described the prize as one that rewards “individuals who have taken exceptional and extraordinary actions for peace, and by doing so have united people across the world”.

The award comes during a week where Mr Trump’s administration has been under scrutiny for lethal strikes on alleged drug boats in the Caribbean and as Mr Trump hardens his rhetoric against immigrants.

The Nobel Peace Prize this year was eventually awarded to Venezuelan opposition leader Maria Corina Machado, who said shortly after receiving the prize that she was dedicating it in part to Mr Trump for “his decisive support of our cause”.

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Netflix agrees blockbuster $72bn deal for Warner Bros studios

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Netflix agrees blockbuster bn deal for Warner Bros studios

Netflix has agreed a $72bn (£54bn) deal to secure Warner Bros Discovery’s film and TV studios and supercharge its library through rights to top franchises including Harry Potter and Game Of Thrones.

It had been reported that the US streaming giant was in exclusive talks over the deal following a bidding war for the assets.

Paramount Skydance and Comcast, the ultimate owner of Sky News, were the rival suitors for the bulk of WBD that also includes HBO, the HBO Max streaming platform and DC Studios.

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While Netflix has agreed a $27.75 per share price with WBD, which equates to the $72bn purchase figure, the deal gives the assets a total value of $82.7bn.

It will see WBD come under Netflix ownership once its remaining Discovery Global division, mostly legacy cable networks including CNN and the TNT sports channels, is separated.

However, the agreement is set to attract scrutiny from competition regulators, particularly in the United States and Europe.

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Both WBD and Netflix do not see the prospect of the deal being completed until late 2026 or 2027.

The main stumbling block is likely to be the fact that Netflix, which has hits including Stranger Things and Squid Game, is already the world’s biggest streaming service.

Stranger Things is one of Netflix's biggest hits. Pic: Netflix
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Stranger Things is one of Netflix’s biggest hits. Pic: Netflix

Further drama could come in the form of a complaint by Paramount, which had previously made a bid for the whole company.

CNBC reported this week that Paramount had claimed the auction process was biased in favour of Netflix.

Entertainment news provider Variety has also reported that major studios fear an institutional crisis for Hollywood unless the move is blocked.

Ted Sarandos, the co-chief executive of Netflix, said: “By combining Warner Bros’ incredible library of shows and movies – from timeless classics like Casablanca and Citizen Kane to modern favourites like Harry Potter and Friends – with our culture-defining titles like Stranger Things, KPop Demon Hunters and Squid Game, we’ll be able to do that even better.

“Together, we can give audiences more of what they love and help define the next century of storytelling.”

Netflix shares were trading down more than 3% in pre-market deals but recovered much of that loss when Wall Street opened. Those for WBD were up by more than 2%.

David O’Hara, managing director at the advisory firm MKI Global Partners, said of the proposed deal: “The 12-18 month timeline signals a long antitrust review, but despite the overlap between Netflix and HBO Max, there is a path to approval through possible HBO divestment.

“Netflix would not accept a $5.8bn break fee if it didn’t see at least a small chance of the deal closing.”

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