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Sam Bankman-Fried, also known by the initials SBF, has tumbled from crypto king to convicted fraudster.

The founder of the FTX cryptocurrency exchange was found guilty in November of defrauding customers of his cryptocurrency exchange out of billions of dollars.

A Manhattan jury convicted him on all seven counts after a month-long trial.

FTX collapsed last November, shocking financial markets and wiping out the crypto tycoon’s estimated $26bn (£21bn) fortune.

But how did the 31-year-old go from such astronomic financial heights to being sentenced to 25 years in prison?

His early life

Bankman-Fried grew up in California’s wealthy San Francisco Bay area, where he attended a $56,000-a-year school.

Both his parents were professors at the prestigious Stanford Law School.

He studied at the Massachusetts Institute of Technology (MIT) where he lived in a group house called Epsilon Theta, which promotes itself as an alcohol-free community “known for liking beanbags, board games, puzzles, and rubber ducks”.

He once told an FTX podcast he did not apply himself in classes and did not know what to do with his life for most of college.

Bankman-Fried graduated in 2014 with a major in physics and a minor in maths.

Vegan, teetotaller, effective altruist

Bankman-Fried didn’t lose the values of Epsilon Theta after graduation, if what he has told journalists is to be believed.

He pushed back against claims of drug and alcohol use at FTX, telling the New York Times’ DealBook Summit there were no “wild parties” at the company.

“When we had parties, we played board games and, you know, 20% of people would have three-quarters of a beer each or something like that. And you know, the rest of us would not drink anything,” he said.

He is also known for being a vegan – and has stuck to his principles in jail despite not being provided with vegan meals, according to his lawyers.

They said he was “literally subsisting” on bread, water and peanut butter in the run-up to his trial.

His veganism is linked to a history of animal rights activism – which in turn is bound up with the effective altruism movement.

While studying, he was reportedly considering a career in animal welfare, having organised a protest against factory farming in his first year of college.

But he met with Will MacAskill, one of the movement’s leaders, who told him he could make more of an impact by finding a career that paid well, and then donating money to charity.

This is known as “earning to give” and it’s one of the central pillars of effective altruism, a movement that seeks to do good by using resources effectively.

When Bankman-Fried took a job at quantitative trading firm Jane Street after graduating, he said he donated about half of his salary to charities, including animal welfare organisations.

He talked about plans to eventually donate most of the money made in his lifetime, with a focus on “long-termism” or safeguarding the future of humanity.

Read more:
The rise and fall of Sam Bankman-Fried

Does SBF’s arrest mean crypto is fundamentally unsound?

Sam Bankman-Fried, who founded and led FTX until a liquidity crunch forced the cryptocurrency exchange to declare bankruptcy, is escorted out of the Magistrate Court building after his arrest in Nassau, Bahamas December 13, 2022. REUTERS/Dante Carrer REFILE - CORRECTING INFORMATION
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Sam Bankman-Fried after his arrest in the Bahamas

The start of the crypto king

After three years at Jane Street, Bankman-Fried quit with his eye on taking more risks to make more money.

He landed on crypto as the best way of getting rich quickly.

It started with Bitcoin. He realised it was selling for more in Asia than it was in the US – and figured if he could buy it in one place and sell it in another he could turn an easy profit.

“I got involved in crypto without any idea what crypto was,” he told Forbes. “It just seemed like there was a lot of good trading to do.”

In 2017 he co-founded cryptocurrency trading firm Alameda Research, bringing in other recruits from the effective altruism community and reportedly donating half of the company’s profits to charity.

At its peak, the company was moving $25m in Bitcoin each day.

Two years later, he founded FTX, an exchange which allowed users to buy and sell buy cryptocurrencies, and moved to Hong Kong.

The FTX boom

From Hong Kong, operations moved to the tax haven of the Bahamas, where Bankman-Fried bought a multimillion-dollar waterfront penthouse.

The luxury property, overlooking an area used for filming the scene where Daniel Craig famously emerged from the water as James Bond in Casino Royale, was also used as a home office for Bankman-Fried and up to nine of his FTX devotees.

In 2021, Forbes described him as “the richest twentysomething in the world” with a net worth of $22.5bn, putting him at 32 on The Forbes 400 rich list.

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What went wrong for FTX’s Sam Bankman-Fried?

Relationship with Caroline Ellison

Bankman-Fried had an on-again, off-again relationship with Caroline Ellison, having met her while working at Jane Street.

He persuaded her to join Alameda Research. As a fellow effective altruist, she was also attracted by the prospect of earning money to give to charity.

The pair lived together in the Bahamas penthouse.

Ellison, who became Alameda’s co-chief executive in 2021 and assumed full control last year, has pleaded guilty to fraud charges and agreed to cooperate with prosecutors.

She appeared to have been unhappy at Alameda long before its collapse.

In July, the New York Times published an article citing her personal writings from early 2022, in which she described feeling “unhappy and overwhelmed” at work and “hurt/rejected” by a breakup with Bankman-Fried.

Bankman-Fried was jailed for allegedly sharing the writings with the reporter, with a judge saying it likely amounted to witness tampering.

Political donations

Bankman-Fried was the second-largest individual donor to Joe Biden in the 2020 election cycle.

He was also among the largest donors to Democratic candidates and causes ahead of the November 2022 midterm elections.

Prosecutors said he used $100m in stolen FTX deposits to fund those donations, which he hoped would spur the passage of crypto-friendly legislation.

He was initially charged with conspiring to break US campaign finance laws, but this charge was dropped after The Bahamas said it was not part of its agreement to extradite him.

However, a judge has said the political donations can still be discussed at the trial because they are “intertwined
inextricably” with the fraud charges.

The trial

After he was arrested in the Bahamas in December and extradited to the US, Bankman-Fried was found guilty of seven charges of fraud and conspiracy stemming from the collapse of FTX.

Bankman-Fried – who pleaded not guilty to two counts of fraud and five of conspiracy – clasped his hands together as the verdict was delivered.

He admitted “mistakes” in running FTX when he testified during the month-long trial, but denied stealing at least $10bn of his customers’ money.

Prosecutors claimed he used the funds for risky bets at his hedge fund Alameda Research – with a huge financial black hole emerging when crypto markets fell sharply.

He was sentenced to 25 years in prison on 28 March.

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Joe Biden says US will stop some weapons shipments to Israel if it invades Gaza city of Rafah

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Joe Biden says US will stop some weapons shipments to Israel if it invades Gaza city of Rafah

President Joe Biden has warned Israel in his toughest public comments so far that the US would stop supplying it with some weapons if Israel invades the southern Gaza city of Rafah.

If Israeli forces launch an all-out assault on the city, the last major Hamas stronghold in the besieged enclave, the US president said “we’re not going to supply the weapons and artillery shells used, that have been used”.

In an interview with CNN, Mr Biden acknowledged US weapons have been used by Israel which have killed civilians in Gaza during its seven-month offensive aimed at destroying Hamas.

Middle East latest: Follow live updates

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IDF launches another Rafah operation

It comes after his decision last week to pause a shipment of heavy 2,000lb bombs to Israel over concerns about a looming attack on Rafah, following public and private warnings from his administration.

“Civilians have been killed in Gaza as a consequence of those bombs and other ways in which they go after population centres,” Mr Biden told CNN.

“I made it clear that if they go into Rafah – they haven’t gone in Rafah yet – if they go into Rafah, I’m not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities, that deal with that problem.”

US Defence Secretary Lloyd Austin confirmed the weapons delay earlier on Wednesday, saying the US paused “one shipment of high payload munitions”.

“We’re going to continue to do what’s necessary to ensure that Israel has the means to defend itself,” Mr Austin said.

“But that said, we are currently reviewing some near-term security assistance shipments in the context of unfolding events in Rafah.”

Israel carried out military operations in Rafah earlier this week in what it described as “targeted strikes”.

Read more:
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Palestinians inspect the site of an Israeli strike on a house in Rafah. Pic: Reuters
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Palestinians inspect the site of an Israeli strike on a house in Rafah. Pic: Reuters

Palestinians wait to receive food cooked by a charity kitchen, in Rafah, in the southern Gaza Strip.
Pic Reuters
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Palestinians wait to receive food cooked by a charity kitchen in Rafah. Pic: Reuters


Mounting death toll

Nearly 34,800 Palestinians, mostly women and children, have been killed so far in Gaza, according to the Hamas-run health ministry. It does not differentiate between civilians and combatants.

The war began when Hamas stormed into Israel on 7 October, killing around 1,200 people and abducting about 250 others, of whom 133 are believed to remain in captivity, according to Israeli tallies.

Palestinians flee Rafah. Pic: Reuters
Palestinians flee Rafah on a donkey-drawn cart. Pic: Reuters
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Palestinians flee Rafah. Pics: Reuters

US will still supply defensive systems

Mr Biden told CNN the US would continue to provide defensive systems to Israel, including for its Iron Dome defence system.

“We’re going to continue to make sure Israel is secure in terms of Iron Dome and their ability to respond to attacks that came out of the Middle East recently,” he said.

“But it’s, it’s just wrong. We’re not going to – we’re not going to supply the weapons and artillery shells.”

It comes as Mr Biden’s administration is due to deliver a formal verdict this week, the first of its kind, on whether Israeli airstrikes on Gaza and restrictions on the delivery of humanitarian aid have violated international and US laws.

A decision against Israel would heap further pressure on Mr Biden to limit the flow of weapons and money to Israel’s military.

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Rafah is Biden’s red line for Netanyahu – but there’s not much he can do to stop it being crossed

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Rafah red line: The push-me-pull-you geopolitical balance is intensely difficult for Biden right now

Setting red lines is all very well, as long as you follow through when they are crossed. President Joe Biden knows that all too well.

But he also knows that if he follows through on this big new red line of withholding offensive weapons for Israel it could cost him dearly domestically.

The push-me-pull-you balance of geopolitics and domestic politics is intensely difficult right now for the American president.

Gaza latest: Follow live updates

I’ll break this down into two parts. The politics in a moment. First the challenges of red lines.

Western leaders throw them down in interviews, like Mr Biden’s pronouncement on CNN last night, as unequivocal threats. “Cross the line, if you dare!” is the rhetoric.

But too often they turn out to be flawed tools of geo-political diplomacy.

Barack Obama set a chemical weapons red line with Syria’s Bashar al Assad in 2012. He walked right through it.

Vladimir Putin remembered that when he walked through a red line Mr Biden had set on Ukraine in 2021. Mr Putin invaded. The rest is history.

Every red line is distinct, of course, and they vary in terms of the gravity of the event they are seeking to prevent.

But the principle behind laying them is the same, as is the message set when they are crossed.

Read more:
Israeli hostages’ families urge Netanyahu to accept deal
Israel claims control of key Rafah crossing

Joe Biden met with Vladimir Putin in Moscow in 2011 when he was vice president and Mr Putin was Russian prime minister. Pic: AP
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Joe Biden with Vladimir Putin during their meeting in Moscow in 2011. Pic: AP

Biden’s frustration with Netanyahu

Over the past six months, as Israel has sought to defeat Hamas in Gaza, President Biden didn’t think he’d need to lay out red lines. After all, Israel is one of America’s closest allies.

Instead, the Biden administration thought gentle diplomacy and frank back-channels with a “close friend of America” would do the trick.

But gradually, as Mr Biden and the Netanyahu government increasingly diverged on protecting civilians and a plan for “the day after” in Gaza, a red line began to appear – Rafah.

This has become Mr Biden’s red line for Israel.

The American president has repeatedly made clear his opposition to Mr Netanyahu’s insistence on a ground invasion of the southern Gazan city (Mr Netanyahu’s own red line) where about 1.4 million people are living, half of them under 18.

Smoke rises from Rafah after an Israeli airstrike on the Gaza city
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Smoke rises from Rafah after an Israeli airstrike on the Gaza city this week. Pic: AP

The Israeli military has not (yet) moved into Rafah city but is instead concentrating its operations to the east of the city and around the crossing to Egypt.

That fact has allowed the Biden administration to claim its red line hasn’t yet been crossed. “They didn’t describe it as a major ground operation,” spokesman John Kirby said this week.

Sometimes, red lines are smashed through. Sometimes, they are gradually chipped away at.

To counter the chipping Mr Netanyahu has been doing for weeks, Mr Biden hardened his red line.

“I made it clear that if they go into Rafah – they haven’t gone in Rafah yet – if they go into Rafah, I’m not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities – that deal with that problem,” he told CNN.

A significant admission

That he has personally admitted what was already a fact – that American weapons have killed thousands of civilians – is significant.

But there is important nuance in his red line.

He’s talking about stopping the delivery of offensive weapons for the type of operations that have flattened much of Gaza and could do the same to Rafah.

He is not threatening to cut Israel off from all US weapons, of course not.

Defensive weapons to counter Iranian proxy rockets will keep coming. As will long-range weapons and jets to counter Iran. None of that will stop being delivered.

Still, it’s a big shift for Biden. It’s not been done before and symbolically for Israel, in the middle of its longest and most critical war, it looks terrible.

The domestic political risks

And that brings us to the domestic politics of all this.

For every lever of influence Mr Biden pulls (and he’s seen they have their limited use) there is a domestic political calculus.

Pretty much all Republicans are against every lever; they want nothing less than unequivocal support for Israel.

More than that though – a significant number of his own Democrats will also be uneasy about America limiting weapons for Israel.

But critical voters in key states are very pro-Palestine. President Biden isn’t oblivious to their cry “Genocide Joe!”

It is a perilous political push-me-pull-you and the election is six months away.

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Trump’s lawyer told to stop former president from ‘cursing audibly’ during hush money trial

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Trump's lawyer told to stop former president from 'cursing audibly' during hush money trial

Donald Trump’s lawyer has been told by a judge to stop the former president from “cursing audibly” and “shaking his head” during Stormy Daniels’ testimony at his hush money trial.

Judge Juan Merchan said the former president’s swearing had the “potential to intimidate” Ms Daniels – the porn star who was paid to keep quiet about an alleged sexual encounter with Trump in 2006.

The judge also told lawyer Todd Blanche that Trump had at one stage “uttered a vulgarity” during Ms Daniels’ testimony in New York on Tuesday.

The conversation took place during a sidebar at the trial – where a lawyer is called to speak to the judge about something so that the jury and the rest of the courtroom cannot hear.

Details of the exchange add to what would have already been remembered as a surreal day in court, as Ms Daniels described a sexual encounter she claims she had with Trump in Lake Tahoe.

As it happened: Stormy Daniels testifies for first time during hush money trial

The official court transcript reveals that after Ms Daniels had given part of her testimony, the judge told Mr Blanche: “I understand that your client is upset at this point, but he is cursing audibly, and he is shaking his head visually and that’s contemptuous.

“It has the potential to intimidate the witness and the jury can see that.”

Mr Blanche responded by saying he would talk to Trump, the transcript shows.

Stormy Daniels leaves court on Tuesday. Pic: AP
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Stormy Daniels leaves court on Tuesday. Pic: AP

Mr Merchan also told Mr Blanche: “I am speaking to you here at the bench because I don’t want to embarrass him.”

The judge continued: “You need to speak to him. I won’t tolerate that.”

Mr Blanche again told Mr Merchan that he would talk to Trump before the judge spoke further about the former president’s behaviour in the courtroom.

The judge said: “One time I noticed when Ms Daniels was testifying about rolling up the magazine, and presumably smacking your client, and after that point he shook his head and he looked down. And later, I think he was looking at you, Mr. Blanche, later when were talking about The Apprentice, at that point he again uttered a vulgarity and looked at you this time. Please talk to him at the break, Mr Blanche.”

Mr Blanche responded by saying he would talk to his client.

Read more:
Who is Stormy Daniels?
Analysis: This was Trump with his trousers down

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Stormy Daniels recalls bedroom encounter with Trump

Following Ms Daniels’ testimony, the Trump team used its opportunity to question the adult film star to paint her as motivated by personal hatred of the former president and hoping to profit off her claims against him.

It comes after the judge found on Monday that Trump had again violated a gag order that bars him from disparaging witnesses or the jury.

Mr Merchan warned Trump he could face jail time “if necessary” for any further violations. Trump has already been fined $10,000 (£8,000) for breaches of the gag order.

What is the trial about?

Payments made to Ms Daniels by Trump’s then lawyer Michael Cohen near the end of the 2016 presidential campaign are at the heart of the hush money case.

Cohen paid Ms Daniels $130,000 (£104,000) in return for her keeping quiet about her claims of a sexual encounter with Trump.

Ms Daniels testified on Tuesday about the contact she said she had with Trump and the payment to buy her silence.

Trump, the Republican candidate for president again ahead of this year’s election, has pleaded not guilty to charges of falsifying business records to cover up the payment and denies having sex with Ms Daniels.

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