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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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.
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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.
Republican congresswoman Marjorie Taylor Greene says she’s facing threats following a barrage of personal criticism from US President Donald Trump on social media.
The former MAGA ally posted on X, saying she had been contacted by private security firms “with warnings for my safety as a hotbed of threats against me are being fueled and egged on by the most powerful man in the world”.
She went on: “As a woman, I take threats from men seriously.
“I now have a small understanding of the fear and pressure the women, who are victims of Jeffrey Epstein and his cabal, must feel.
“As a Republican, who overwhelmingly votes for President Trump’s bills and agenda, his aggression against me, which also fuels the venomous nature of his radical internet trolls (many of whom are paid), this is completely shocking to everyone.”
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‘MAGA meltdown going on because of Epstein’
Calling her “wacky,” a “RINO” (Republican In Name Only) and swapping her surname from Greene to “Brown” (“Green grass turns Brown when it begins to ROT!”), Donald Trump rescinded his support for the Georgia representative and suggested he could back a primary challenger against her.
Ms Greene claims the president’s “aggressive rhetoric” is in retaliation for her support for releasing files about disgraced paedophile financier Jeffrey Epstein.
After the US government shutdown ended, a petition to vote on the full release of the files about Epstein received enough signatures – including that of Ms Greene – to bring it to a vote in the House of Representatives.
Ms Greene claimed text messages she sent to Mr Trump over the Epstein files “sent him over the edge,” writing on social media: “Of course he’s coming after me hard to make an example to scare all the other Republicans before next week’s vote to release the Epstein files.”
She went on: “It’s astonishing really, how hard he’s fighting to stop the Epstein files from coming out that he actually goes to this level.”
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3:55
Trump rebukes MAGA ally over foreign policy
High-profile figures, including Mr Trump, have been referenced in some of the documents.
The White House has said the “selectively leaked emails” were an attempt to “create a fake narrative to smear President Trump”, who has consistently denied any involvement or knowledge about Epstein’s sex trafficking operation.
Mr Trump has called the Epstein files a “hoax” created by the Democrats to “deflect” from the shutdown.
Watch Sky’s Martha Kelner clash with Taylor Greene earlier this year…
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3:05
Marjorie Taylor Greene clashes with Sky correspondent
In another post on X, Ms Greene wrote: “I never thought that fighting to release the Epstein files, defending women who were victims of rape, and fighting to expose the web of rich powerful elites would have caused this, but here we are.
“And it truly speaks for itself. There needs to be a new way forward.”
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Epstein took his own life in prison in 2019 while awaiting a trial for sex trafficking charges and was accused of running a “vast network” of underage girls for sex. He pleaded not guilty.
Following a conviction for soliciting prostitution from a minor in 2008, he was registered as a sex offender.
Mr Trump has consistently denied knowledge of Epstein’s crimes.
Donald Trump has said he will sue the BBC for between $1bn and $5bn over the editing of his speech on Panorama.
The US president confirmed he would be taking legal action against the broadcaster while on Air Force One overnight on Saturday.
“We’ll sue them. We’ll sue them for anywhere between a billion (£792m) and five billion dollars (£3.79bn), probably sometime next week,” he told reporters.
“We have to do it, they’ve even admitted that they cheated. Not that they couldn’t have not done that. They cheated. They changed the words coming out of my mouth.”
Mr Trump then told reporters he would discuss the matter with Prime Minister Sir Keir Starmer over the weekend, and claimed “the people of the UK are very angry about what happened… because it shows the BBC is fake news”.
Separately, Mr Trump told GB News: “I’m not looking to get into lawsuits, but I think I have an obligation to do it.
“This was so egregious. If you don’t do it, you don’t stop it from happening again with other people.”
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BBC crisis: How did it happen?
The Daily Telegraph reported earlier this month that an internal memo raised concerns about the BBC’s editing of a speech made by Mr Trump on 6 January 2021, just before a mob rioted at the US Capitol building, on the news programme.
The concerns regard clips spliced together from sections of the president’s speech to make it appear he told supporters he was going to walk to the US Capitol with them to “fight like hell” in the documentary Trump: A Second Chance?, which was broadcast by the BBC the week before last year’s US election.
Following a backlash, both BBC director-general Tim Davie and BBC News chief executive Deborah Turness resigned from their roles.
‘No basis for defamation claim’
On Thursday, the broadcaster officially apologised to the president and added that it was an “error of judgement” and the programme will “not be broadcast again in this form on any BBC platforms”.
A spokesperson said that “the BBC sincerely regrets the manner in which the video clip was edited,” but they also added that “we strongly disagree there is a basis for a defamation claim”.
Earlier this week, Mr Trump’s lawyers threatened to sue the BBC for $1bn unless it apologised, retracted the clip, and compensated him.
Image: The US president said he would sue the broadcaster for between $1bn and $5bn. File pic: PA
Legal challenges
But legal experts have said that Mr Trump would face challenges taking the case to court in the UK or the US.
The deadline to bring the case to UK courts, where defamation damages rarely exceed £100,000 ($132,000), has already expired because the documentary aired in October 2024, which is more than one year.
Also because the documentary was not shown in the US, it would be hard to show that Americans thought less of the president because of a programme they could not watch.
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2:05
Sky’s Katie Spencer on what BBC bosses told staff on call over Trump row
Newsnight allegations
The BBC has said it was looking into fresh allegations, published in The Telegraph, that its Newsnight show also selectively edited footage of the same speech in a report broadcast in June 2022.
A BBC spokesperson said: “The BBC holds itself to the highest editorial standards. This matter has been brought to our attention and we are now looking into it.”
Donald Trump has confirmed he plans to sue the BBC for between $1bn and $5bn over the editing of his speech in a Panorama news programme.
The corporation said it was an “error of judgement” to splice two sections of his speech together, and the programme will “not be broadcast again in this form on any BBC platforms”.
“Winning one is, in this case, like trying to lasso a tornado: technically possible, but you’re going to need more than a cowboy hat.”
So why would this case be so hard to win?
Where did the damage occur?
The Panorama episode was not aired in the US, which may make Mr Trump’s case harder.
“For a libel claim to succeed, harm must occur where the case is brought,” said Mr Stevens.
“It’s hard to argue [for] that reputational damage in a jurisdiction where the content wasn’t aired.”
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11:02
BBC crisis: How did it happen?
The president will also have to show that his reputation suffered actual harm.
“But his reputation was pretty damaged on this issue before,” said Mr Stevens.
“There have been judicial findings, congressional hearings, global media coverage around 6 January. Laying that responsibility for any further harm at the door of the BBC seems pretty tenuous.”
Was the mistake malicious?
In order to sue someone for libel in the US, you have to prove they did it on purpose – or with ‘malicious intent’.
That might be hard to prove, according to Alan Rusbridger, editor of Prospect magazine and former editor-in-chief of the Guardian.
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0:54
‘Trump suing BBC is just noise and bluster’
“I just don’t think that he can do that,” he said.
Since 1964, US public officials have had to prove that what was said against them was made with “knowledge that it was false or with reckless disregard for the truth”.
“The reason for that, when the Supreme Court passed this in 1964, is the chilling effect on journalism,” said Mr Rusbridger.
“If a journalist makes a mistake, [and] this clearly was a mistake, if that ends up with their employers having to pay $1bn, $2bn, $3bn, that would be a dreadful chill on journalism.
“Unless Trump can prove that whoever this was who was editing this film did it with malice, the case is open and shut.”
Mr Trump says he’s going to sue for between $1bn and $5bn, figures former BBC legal correspondent Clive Coleman described as “very fanciful”.
“That, I think, is very fanciful because he will have to show that he has suffered billions of dollars worth of reputational damage.
“We know that this was back in 2020 when the speech was made. He went on to be successful in business and, of course, to be re-elected as US president.”
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1:27
‘Trump faces some really big hurdles’ in suing BBC
However, Mr Coleman did suggest the BBC should try to “bring this to an end as speedily as possible”.
“Litigation is always a commercial decision and it’s a reputational decision,” he said.
“The legal processes towards a court case are long and arduous and this is going to blow up in the news pretty regularly between now and then.”
Other news organisations facing litigation by Mr Trump have settled out of court for “sums like $15m, $16m”, according to Mr Coleman.