Connect with us

Published

on

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
Image:
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.

Please use Chrome browser for a more accessible video player

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.

Continue Reading

US

‘He must have got this from K’: What mistaken tweet tells us about ‘secret’ plan to end Ukraine war

Published

on

By

'He must have got this from K': What mistaken tweet tells us about 'secret' plan to end Ukraine war

There are developments in the quest for peace in Ukraine. 

It’s been one of those days when different snippets of news have come together to create a picture of sorts. The jigsaw remains complicated, but the suggestion is neither the Ukrainians nor the Europeans have been privy to the developments.

As it happened: Russia responds to spy ship claim

The most intriguing development came at lunchtime on Thursday.

“He must have got this from K…” wrote Donald Trump‘s special envoy Steve Witkoff on X. He clearly thought he was sending a private message.

He was replying to a scoop of a story by Axios’s Barak Ravid.

Steve Witkoff, Trump's envoy for the Middle East and trusted Ukraine peace plan man. Pic: Reuters
Image:
Steve Witkoff, Trump’s envoy for the Middle East and trusted Ukraine peace plan man. Pic: Reuters

The story revealed a “secret” plan to end the Ukraine war. The report suggested the Americans had been talking secretly to the Russians about a renewed effort to bring the war to an end, which involved Ukraine ceding land it still controls to Russia.

Who is “K” in Witkoff’s message? It’s probably Kirill Dmitriev, who has become Putin’s unofficial and unlikely envoy to Washington. Kyiv-born and Stanford-educated Dmitriev is, essentially, Witkoff’s Russian opposite number.

In a sense, they are the yin and yang of this geopolitical puzzle. Witkoff is a real estate mogul. Dmitriev is an economist. They are opposing forces with backgrounds that are, on the face of it, equally unsuited to geopolitical conflict resolution. Yet their two leaders are trusting them with this huge task.

Kirill Dmitriev was in Alaska for the Trump-Putin summit earlier this year. Pic: Reuters
Image:
Kirill Dmitriev was in Alaska for the Trump-Putin summit earlier this year. Pic: Reuters

‘Territorial concessions’ in 28-point plan

So, back to the developments to have emerged over the last 24 hours.

First, we know senior US Department of War officials, including Army Secretary Dan Driscoll, have arrived in the Ukrainian capital to meet their counterparts there.

Their visit was scheduled but the focus shifted. The plan to discuss drone technology and the winter offensive morphed into a discussion about a Russian-presented peace plan Witkoff and Dmitriev had been discussing.

Rescue workers clear rubble after a Russian strike on Ternopil, Ukraine. Pic: AP
Image:
Rescue workers clear rubble after a Russian strike on Ternopil, Ukraine. Pic: AP

This is the second development. The Axios report – which Witkoff seems inadvertently to have suggested came from Dmitriev – claims the two envoys met recently in Florida (Witkoff’s base) to discuss a 28-point plan for peace.

A defence official told our partners at NBC News that Driscoll has been briefed on the 28-point plan. Driscoll and his military staff are thought to have been presenting an initial brief to the Ukrainian side of this Russian-sponsored plan.

Ukrainian sources have suggested to me in clear terms they are not happy with this Witkoff-Dmitriev plan. Sources tell me it includes “territorial concessions” and “reductions in military strength”. The Ukrainian position is the plan represents the latest attempt to “play the American government”.

Please use Chrome browser for a more accessible video player

Death toll rises after Russian strikes

What’s happening with security guarantees?

Ukraine wants security guarantees from the US. Trump signalled during Zelenskyy’s last visit to Washington that he was willing to provide those. This was framed by the Europeans as a huge positive development, even though the White House did not spell out the crucial detail – what would these guarantees actually entail?

The latest reporting, from Axios, suggests the security guarantees (still undefined, publicly at least) are dependent on Ukraine giving up the whole of the Donbas region – this would include about 15% of territory Russia does not currently hold.

Crucially, the areas of the Donbas from which Ukraine would withdraw (the 15%) would be considered a demilitarised zone. The plan is very similar to one floated by Vice President JD Vance in the months before Trump won last year’s election, which was roundly rejected as a non-starter at the time.

Watch more from Mark Stone:
What have we learned from the Epstein files?
The prince and president: What happened?

Is Gaza plan the model?

Another source, from a third country close to the negotiations, has told me the Qataris are playing a role in the talks and were present at the weekend when Steve Witkoff met Ukraine’s national security advisor Rustem Umerov last weekend.

Qatari and Turkish mediation, along with the multipoint peace plan for Gaza, is being projected as a model transferable to Ukraine despite the conflict, challenges, and root causes being wholly different.

Other European sources told me this morning they were not aware of this Russian-American plan. It’s worth remembering it’s in the interests of the Russians to be seen to be engaged in peace proposals in order to avoid secondary sanctions from the US.

Zelenskyy has been in Turkey over the past 24 hours, where he singled out Trump’s efforts to find peace.

Volodymyr Zelenskyy and Recep Tayyip Erdogan at a press conference in Ankara. Pic: AP
Image:
Volodymyr Zelenskyy and Recep Tayyip Erdogan at a press conference in Ankara. Pic: AP

“Since the beginning of this year, we in Ukraine have supported every decisive step and the leadership of @POTUS, every strong and fair proposal aimed at ending this war.” Zelenskyy wrote. “And only President Trump and the United States have sufficient power to make this war come to an end.”

This is the vital language of flattery.

Continue Reading

US

Deadline day for Andrew to respond to Epstein inquiry – but it’s hard to imagine why he’d talk

Published

on

By

Deadline day for Andrew to respond to Epstein inquiry - but it's hard to imagine why he'd talk

They’ve said they are offering him an opportunity to tell them everything, once and for all.

But as we hit the two-week deadline set by the US Congress committee investigating Jeffrey Epstein for a reply from Andrew Mountbatten-Windsor, will he agree to their request to open up about the paedophile financier?

The letter sent by the House Committee on Oversight and Government Reform said members wanted to talk to him because of the widely reported allegations that have been made against him, which he denies, and because of his relationship with Epstein and what he may have seen.

The committee is looking into Epstein’s crimes and his wider sex trafficking network. Andrew was given until today, 20 November, to respond.

Legally he isn’t obliged to talk to them, and to be honest it’s hard to imagine why he would.

The only time he has spoken at length about the allegations against him and his relationship with Epstein was that Newsnight interview in 2019, and we all know how much of a disaster that was.

Please use Chrome browser for a more accessible video player

Releasing the Epstein files: How we got here

Yes, this could be an opportunity for him to publicly apologise for keeping up his links with Epstein, which he has never done before, or show some sympathy towards Epstein’s victims, even as he vehemently denies the allegations against him.

But while there is the moral argument that he should tell the committee everything he knows, it could also raise more uncomfortable questions for him, and that could feel like too much of a risk for Andrew and the wider Royal Family.

However, even saying no won’t draw all this to a close. There are other outstanding loose ends.

The Metropolitan Police still have to tell us if they intend to take any further action after they said they were looking into claims Andrew had asked one of his officers to dig up dirt on his accuser, Virginia Giuffre.

Read more:
King formally strips Andrew of prince title
Bill to release Epstein files gets all-clear from Congress

Please use Chrome browser for a more accessible video player

The new Epstein files: The key takeaways

There could also still be a debate in parliament about the Andrew problem.

The Liberal Democrats have said they want to use their opposition debating time to bring the issue to the floor of the House of Commons, while other MPs on the Public Accounts Committee have signalled their intention to look into Andrew’s finances and housing arrangements.

And then there are the wider Epstein files over in America, and what information they may hold.

From developments this week, it seems we are edging ever closer to seeing those released.

All of this may mean Andrew in other ways is forced to say more than he wants to, even without opening up to the Congress committee.

Continue Reading

US

Trump signs bill approving release of Epstein files

Published

on

By

Trump signs bill approving release of Epstein files

Donald Trump has signed a bill approving the release of files relating to Jeffrey Epstein by the US Justice Department.

“I HAVE JUST SIGNED THE BILL TO RELEASE THE EPSTEIN FILES!” he said in a Truth Social post, following a lengthy preamble aimed at discrediting the Democrats.

“Democrats have used the ‘Epstein’ issue, which affects them far more than the Republican Party, in order to try and distract from our AMAZING Victories,” he continued.

Donald Trump speaking in Washington earlier on Wednesday. Pic: Reuters
Image:
Donald Trump speaking in Washington earlier on Wednesday. Pic: Reuters

It comes after the Senate finished the formalities and sent the proposed legislation to the president’s desk, having comfortably cleared a vote in the House of Representatives on Tuesday.

The Justice Department now has 30 days to release the documents it holds on the paedophile financier.

WHAT DOES THE BILL SAY MUST BE RELEASED?

  • All files relating to Epstein, including investigations, prosecutions, or custodial matters;
  • All files relating to Ghislaine Maxwell;
  • Flight logs or travel records for any aircraft, vessel, or vehicle owned, operated, or used by Epstein or any related entity;
  • Individuals named or referenced in connection with Epstein’s criminal activities, civil settlements, immunity or plea agreements, or investigations;
  • Entities with known or alleged ties to Epstein’s trafficking or financial networks;
  • Any immunity deals, non-prosecution agreements, plea bargains, or sealed settlements involving Epstein or his associates;
  • Internal DOJ communications concerning decisions to charge, not charge, investigate, or decline to investigate Epstein or his associates;
  • All communications concerning the destruction, deletion, alteration, misplacement, or concealment of files related to Epstein;
  • Documentation of Epstein’s detention or death, including witness interviews and autopsy reports.

How did we get here?

Mr Trump promised during last year’s election campaign to release the Epstein files in full, but has since spent months decrying them as a Democratic “hoax”.

His links to the Epstein have long been subject to scrutiny. Mr Trump has always denied any wrongdoing.

His change of heart on releasing the files came as a surprise over the weekend, as he called on Republicans in Congress to vote for the so-called Epstein Files Bill and indicated he’d sign it.

“Because of this request, the votes were almost unanimous in favor [sic] of passage,” Mr Trump wrote in his late-night post announcing the signing of the bill.

The House of Representatives was indeed near unanimous in voting for the material to be released, with 427 in favour and one against.

Hot on the heels of that vote, which was met with cheers in the chamber, the Senate said it too would pass the bill.

Please use Chrome browser for a more accessible video player

House passes bill to release all Epstein files

Trump tries to tie Democrats to Epstein

Mr Trump’s post repeatedly labels Epstein as a Democrat, citing his past associations with the likes of Bill Clinton.

Mr Trump has said he wants the Justice Department to investigate Epstein’s links to Mr Clinton, former treasury secretary Larry Summers, and Reid Hoffman, the LinkedIn founder, who is also a prominent Democratic donor.

All three men were mentioned in the 20,000 other Epstein-related documents released by Congress’s House Oversight Committee last week. None of them, however, have been accused of wrongdoing in the case.

A big question remains

Prosecutors don’t usually release documents during a live investigation.

That’s raised questions about whether the Justice Department will redact or withhold certain files.

There’s also going to be a lot of information about people not accused of any wrongdoing.

So, the question remains: will the files actually be released fully – and unredacted?

Tap here to follow Trump100 wherever you get your podcasts

Emails, photos and other documents released by Congress in recent weeks have included references to Mr Trump, the UK’s since sacked US ambassador Lord Mandelson, and former British prince Andrew Mountbatten-Windsor, who has faced calls from members of the committee to give evidence.

Like Mr Trump, both Britons have denied any wrongdoing and expressed regret about their relationship with Epstein.

The deadline for Mr Mountbatten-Windsor to respond to an official request from the committee is today.

Please use Chrome browser for a more accessible video player

What’s at stake for Andrew at US Congress committee?

Unrest in MAGA world

The issue has proved to be a major source of division within Mr Trump’s Make America Great Again movement.

Marjorie Taylor Greene, a long-time Trump backer who publicly fell out with the president just days ago, stood with Epstein survivors on the steps of the Capitol ahead of Tuesday’s Congress votes.

She said: “These women have fought the most horrific fight that no woman should have to fight. And they did it by banding together and never giving up.”

Read more: Who is Marjorie Taylor Greene?

Please use Chrome browser for a more accessible video player

‘A day Trump didn’t want to see for a long time’

Epstein died by suicide in his prison cell in August 2019, while awaiting trial on sex trafficking charges.

He was already a registered sex offender after pleading guilty in 2008 to Florida state changes of unlawfully paying a teenage girl for sex.

Continue Reading

Trending