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.
The 69-year-old Chicago-born cardinal was not seen as a frontrunner but quickly secured the required two-thirds majority.
There was jubilation in St Peter’s Square when white smoke emerged and about an hour later the Pope’s identity was revealed when he stepped onto the balcony.
The choice of Leo is the first time the name has been used since Leo XII – the pope from 1878 to 1903.
More on Pope Leo
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1:25
Moment new pope emerges on balcony
Image: People celebrated the new pope’s announcement in St Peter’s Square. Pic: Reuters
Sky News understands one of the first things the Pope did was greet staff at his former residence, Sant’Uffizio Palace, just outside the Vatican.
All eyes will now be on his first mass, when he and other cardinals return to the Sistine Chapel around 10am.
Pope Leo’s first words as leader of 1.4 billion Catholics on Thursday evening were “may peace be with all of you”.
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3:21
Conclave: How the last 48 hours unfolded
His balcony speech also paid tribute to his predecessor – who only made him cardinal two years ago and brought him from Peru for a senior Vatican role.
“The pope that blessed Rome gave his blessing to the whole world on that Easter morning. So let us follow up that blessing,” said Leo.
He also called for a “church that builds bridges” and is “able to receive everybody that needs our charity, our presence, dialogue and love”.
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0:43
Trump comments on first US pope
There has long been a taboo against a US pope – given the influence the country already has – but Leo was promoted as a “compromise candidate” ahead of conclave.
His many years as a missionary in Peru are also believed to have given him more universal appeal, especially among the cardinals from Central and South America.
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President Donald Trump told reporters having an American in the role for the first time was a “great honour” – and Time magazine has already revealed its cover celebrating the moment.
However, the Pope appears to have taken issue with some of the Trump administration’s views and policies.
His X account posted a link in February to an article criticising comments by the vice president entitled: “JD Vance is wrong: Jesus doesn’t ask us to rank our love for others”.
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In April, when President Trump met El Salvador’s leader about using a notorious prison for suspected US gang members, he shared another post stating: “Do you not see the suffering? Is your conscience not disturbed? How can you stay quiet?”
‘Pope played Wordle before conclave’
With many now waiting on the Pope’s next public comments, his brothers have revealed their surprise when they saw him emerge in the white robes on TV.
“When the cardinal came out and started to read his name, as soon as he went “raw” I knew he was gonna say ‘Roberto’ – and he did – and I just freaked out.”
Mr Prevost added: “We’ve kind of known he was special, and we used to tease him about being pope when he was six years old and stuff.”
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The Pope’s other brother said he had been in contact with him before conclave and joked about watching the hit film of the same name.
“I said did you watch the movie Conclave so you know how to behave,” John Prevost told NBC News.
“And he had just finished watching the movie so knew how to behave; so it’s that kind of stuff because I wanted to take his mind off of it – because this is now an awesome responsibility.”
He also revealed the brothers had played online puzzles Wordle and Words with Friends to take the Pope’s mind off things in the run-up to the election.
He was made a cardinal by Pope Francis in 2023 and appointed head of the dicastery for bishops, a powerful position responsible for selecting new bishops.
Significantly, he presided over one of Francis’s most revolutionary reforms when he added three women to the voting bloc which decides on the bishop nominations sent to the Pope.
Image: Bishop Robert Prevost leading a celebration in Peru last August. Pic: AP
As cardinal, he said little on key issues of the church, but some of his positions are known.
He is reportedly very close to Francis’s vision regarding the environment, outreach to the poor and migrants. He said in 2024 “the bishop is not supposed to be a little prince sitting in his kingdom”.
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He also supported Pope Francis’s stance on allowing divorced and remarried Catholics to receive Holy Communion.
However, he only showed mild support for Francis allowing priests to bless same-sex couples.
Image: Cardinal Prevost being appointed by Francis in 2023. Pic: EPA/Shutterstock
Pope Leo has years of experience in leadership roles within the church.
He was twice elected to the top position of the Augustinian religious order and Francis clearly had an eye on his progress – moving him from the Augustinian leadership back to Peru in 2014, where he served as administrator and later archbishop of Chiclayo.
He acquired Peruvian citizenship in 2015 and remained in Chiclayo until 2023, when Francis brought him to Rome.
Image: Pope Leo’s years in Peru made him a more universal candidate for the papacy. Pic: AP
While there has long been a taboo against a US pope – given the geopolitical power the US already wields – Leo was being promoted as a “compromise candidate” ahead of the conclave.
The amount of time he has spent in Peru also allowed him to be seen as a more universal candidate.
The world learned a new pope had been chosen at around 6.08pm local time (5.08pm UK time) on Thursday as white smoke suddenly emerged from the chimney of the Sistine Chapel.
Delivering an address from the balcony, Pope Leo – speaking in Italian – told the crowds: “Peace be with you all.”
He then thanked his predecessor and repeated Francis’s call for a church that is engaged with the modern world and “always looking for peace, charity and being close to people, especially those who are suffering”.
Image: Newly-elected Pope Leo XIV appears on the balcony of St Peter’s Basilica at the Vatican. Pic: Reuters
“Together we must try to find out how to be a church that builds bridges, establishes dialogue and is open to receiving everybody,” he said.
Speaking in Spanish, he added: “I would particularly like to say hello to my compatriots from Peru.
There is a long list of demands in the new pope’s in-tray, ranging from the position of women in the church to the ongoing fight against sexual abuse and restoring papal finances.
People both inside the Catholic Church and around the world will be watching how the new pontiff deals with them.
Here, Sky News Europe correspondent Siobhan Robbins takes an in-depth look at the challenges facing the new pontiff.
Sexual abuse
Many Catholic insiders credit Pope Francis with going further than any of his predecessors to address sexual abuse.
He gathered bishops together for a conference on the issue in 2019 and that led to a change that allows cooperating with civil courts if needed during abuse cases.
But it didn’t go as far as forcing the disclosure of all information gathered in relation to child abuse.
Any abuse allegations must now be referred to church leaders, but reformers stopped short of decreeing that such cases should also be automatically referred to the police.
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6:27
Clerical abuse victim says church still has ‘so much to do’
While many abuse victims agree they saw progress under Pope Francis, who spent a lot of time listening to their accounts, they say reforms didn’t go far enough.
The next pope will be under pressure to take strong action on the issue.
Image: Newly-elected Pope Leo XIV appears on the balcony of St Peter’s Basilica at the Vatican. Pic: Reuters
Women
Pope Francis also did more to promote women in the Vatican than any other pontiff.
Two years ago, he allowed women to vote in a significant meeting of bishops.
While he was clear he wanted women to have more opportunities, he resisted the idea that they needed to be part of the church hierarchy and didn’t change the rules on women being ordained.
Image: A woman kneels at St. Peter’s Square, on the first day of the conclave to elect the new pope. Pic: Reuters
His successor will need to decide if they push this agenda forward or rein it back in.
It’s a pressing concern as women do a huge amount of the work in schools and hospitals, but many are frustrated about being treated as second-class citizens. 10,000 nuns a year have left in the decade from 2012 to 2022, according to Vatican figures.
Inclusion
“Who am I to judge?” Pope Francis famously said when asked about a gay monsignor in 2013.
His supporters say he sought to make the church more open, including allowing blessings for same sex couples but while critics argue he didn’t go far enough, some conservatives were outraged.
Image: A gay couple kiss at a Catholic protest against the legalisation of gay marriage in Mexico. File pic: Reuters
African bishops collectively rejected blessings for same sex couples, saying “it would cause confusion and would be in direct contradiction to the cultural ethos of African communities”.
How welcome LGBTQ+ people feel in the church will depend partly on decisions made by the pontiff.
Conversely, the Pope must also bring together disparate groups within the Catholic faith.
Many are demanding a leader who can unite the various factions and bring stability in an increasingly unstable world.
The global south
While the Catholic church is losing members in its traditional base of Europe, it’s growing rapidly in the global south.
The area has become the new centre of gravity for Catholicism with huge followings in countries like Brazil, Mexico and the Philippines.
Pope Francis tried to expand representation by appointing more cardinals from different areas of the world, and the new Pope will be expected to continue this.
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1:02
Behind the scenes at the conclave
Finance
The Vatican is facing a serious financial crisis.
The budget deficit has tripled since Pope Francis’s election and the pension fund has a shortfall of up to €2bn (£1.7bn).
These money worries, which were compounded by COVID-19 and long-standing bureaucratic challenges, represent a major concern for the next pope.