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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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Trump’s Iran remarks let him still play ‘good cop’ to Netanyahu’s ‘bad cop’

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Trump's Iran remarks let him still play 'good cop' to Netanyahu's 'bad cop'

Reading between the lines of President Trump’s social media posts is an art, not a science.

But whether by intention or not, there is always insight in his posts. His Truth Social words reacting to the Israeli attack on Iran are intentionally ambiguous.

When was he told by Israel that they would strike Iran? Did he give them a green light, or was it more amber?

Israel-Iran live: Missile from Iran and Yemen ‘hitting Israel’

Was his insistence, as recently as 48 hours ago, that a strike would “blow” the chances of a deal with Iran actually just a ruse to afford Israel the element of surprise? That’s what the Israelis are claiming.

Donald Trump speaks after signing a resolution on zero-emission heavy-duty trucks in the White House. Pic: Reuters
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Mr Trump said he ‘gave Iran chance after chance to make a deal’. Pic: Reuters

Clearly, President Trump does not want to give the impression that his ‘don’t strike’ advice was ignored by Netanyahu.

His social posts are filled with enough ambiguity to allow him to maintain his good cop stance alongside Netanyahu, the bad cop: “I gave Iran chance after chance to make a deal. I told them, in the strongest of words, to ‘just do it’…”

More on Donald Trump

Trump’s ‘art of the deal’, whether it be in real estate or nuclear weapon negotiations, requires unpredictability and ambiguity.

Both of those, as it happens, are useful to hide ineptitude too. The line between diplomatic masterstroke and disastrous diplomacy is thin.

The president is claiming that the Israeli attacks make a deal more, not less, likely because of the pressure Iran will now be under.

Maybe, but many regional watchers are very unconvinced.

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An alternative path to negotiations for Iran would be to go fully down the North Korea route, comforted in the knowledge that China – as a big Iranian oil customer – and Russia – as a weapons customer – will be on side.

Trump may think that the pressure of bombardment will force Iran to heel. But the other pressure the Iranian supreme leader is under is the pressure of survival.

Self-preservation necessitates the Iranian response that we’re now seeing before any prospect of renewed negotiations can come.

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Iran attacks analysed

The Israelis and the Americans are calculating that Iran and its proxies are now sufficiently degraded, and so the response will be limp and containable.

They might be right in terms of conventional attacks, but asymmetrical operations are another fear – against Israeli targets or more broadly, softer Western targets in the region or beyond.

Step back from the chaos of the past 24 hours. The broader picture here is regime change.

Netanyahu said as much in his Friday speech, calling for an internal uprising. He ignored history – which suggests people tend to rally round their flag – but more than that, that foreign air strikes alone don’t work.

Look at Libya in 1986, Iraq in 1991, or Yugoslavia in 1999.

Read more:
Nuclear threat wasn’t only reason Israel attacked Iran
How the attacks could impact global economy

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Netanyahu wants to go further. Will he take out the supreme leader? Trump does not want another full-scale conflict in the Middle East. Of all the things he is accused of being, a hawkish warmonger he is not.

But there are plenty of politicians on Capitol Hill – on both sides of the divide – who support regime change in Iran.

I was at an event in Congress in December organised by Iranian exiled opposition leaders. I was struck by the cross-party support for regime change in one form or another.

Israel this weekend announced that its military had achieved total air superiority from western Iran to the capital Tehran. That’s remarkable.

Could Trump be persuaded to pursue regime change? Peace, eventually, through strength? His motto adapted.

We are at yet another unsettlingly tense moment for the region.

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Minnesota: US politician shot dead and another wounded – as suspect named

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Minnesota: US politician shot dead and another wounded - as suspect named

A manhunt is under way after a US politician and her husband were shot dead in their home in a “politically motivated assassination” – and another politician and his wife were also shot.

Minnesota state representative Melissa Hortman and her husband were killed at their home, Tim Walz, the governor of Minnesota, confirmed.

State senator John Hoffman and his wife were also shot in their home but are expected to survive. The senator, according to officials, is in a stable condition after emergency surgery.

Graphic of Minnesota State Representative Melissa Hortman (L) and Senator John Hoffman. Pic: Facebook / Minnesota Legislature
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Representative Melissa Hortman and Senator John Hoffman. Pic: Facebook/Minnesota Legislature

Authorities have confirmed that the suspect they are looking for is 57-year-old Vance Boelter – who, in a press conference, was described as a 6ft 1in white male, with brown hair and brown eyes.

Members of the public have been urged not to approach him as he may be armed.

The suspect was reportedly posing as a police officer, and officials said the alleged attacker escaped after an exchange of gunfire.

Both politicians are members of the Minnesota Democratic-Farmer-Labor Party.

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US politician killed: Governor calls it ‘targeted political violence’

US President Donald Trump, in a statement, said: “I have been briefed on the terrible shooting that took place in Minnesota, which appears to be a targeted attack against State Lawmakers.

“Our Attorney General, Pam Bondi, and the FBI, are investigating the situation, and they will be prosecuting anyone involved to the fullest extent of the law.

“Such horrific violence will not be tolerated in the United States of America.”

John Hoffman and his wife were shot multiple times at their home. Pic: AP
Image:
John Hoffman and his wife were shot multiple times at their home. Pic: AP

Authorities have urged residents of the Champlin and Brooklyn Park areas to stay in their homes.

In an earlier Facebook post, Mr Walz said: “I’ve been briefed this morning on an ongoing situation involving targeted shootings in Champlin and Brooklyn Park.

“The Minnesota Department of Public Safety and local law enforcement are on the scene. We will share more information soon.”

Former US president Joe Biden with Melissa Hortman. Pic: Instagram.
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Former US president Joe Biden with Melissa Hortman. Pic: Instagram/ melissahortman

At a subsequent news conference, Mr Walz said: “We must all, in Minnesota and across the country, stand against all forms of political violence.

“Those responsible for this will be held accountable.”

He has also urged those in Minnesota not to attend political rallies until the suspect is caught.

Police evacuated the Texas State Capitol and grounds in Austin ahead of an anti-Trump protest on Saturday – citing a credible threat to politicians.

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Kamala Harris and Melissa Hortman. Pic: Instagram.
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Former US vice president Kamala Harris and Melissa Hortman. Pic: Instagram/ melissahortman

Post-mortem examinations will be conducted to determine the extent of their injuries.

However, it is clear that both Ms Hortman and her spouse died from gunshot wounds, Drew Evans, superintendent of the Bureau of Criminal Apprehension, said.

Ms Hortman, a mother of two, was first elected in 2004 – and was the top house Democratic leader in the state legislature. She also served as speaker of the Minnesota House of Representatives.

Mr Hoffman, also a Democrat, was first elected in 2012 – and ran a consulting firm called Hoffman Strategic Advisors.

Hakeem Jeffries, House Democratic leader, has described the shootings as “deeply disturbing” on X, adding that “violence is never acceptable”, and that he is “praying hard” for the victims.

Former Arizona representative, Gabby Giffords, described her friend Ms Hortman as a “true public servant”, who “dedicated her life building a better, safer Minnesota”.

Nancy Pelosi, former speaker of the US House of Representatives, said she was “heartbroken” by the news.

She added: “Unfortunately, we know the tragedy of when political violence hits home very well.

“All of us must remember that it’s not only the act of violence, but also the reaction to it, that can normalise it. This climate of politically-motivated violence must end.”

In a tribute, Democratic National Committee chair Ken Martin said: “Melissa, Mark, John, and Yvette – these are not just names, and this is not just politics.

“These are people. They’re longtime friends to me and Jenn and so many others in Minnesota. They have children, loved ones, neighbors, and friends.”

Mr Martin added: “Today, we recommit ourselves to fight harder for the values that Melissa and Mark embodied – building a kinder, more just, and loving world. If this murderer thinks we will be silenced, he’s wrong.”

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Trump and Putin agree Iran-Israel conflict ‘should end’ in hour-long phone call

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Trump and Putin agree Iran-Israel conflict 'should end' in hour-long phone call

US President Donald Trump has revealed details of a one-hour phone call with his Russian counterpart, in which they agreed the conflict between Israel and Iran should end.

Posting on his Truth Social platform, Mr Trump added that he told Vladimir Putin that “his war [in Ukraine] should also end”.

Iran has retaliated following Israel’s attack on its nuclear sites on Friday – which killed senior army officers and nuclear scientists.

Israel-Iran latest: Follow live updates

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Iran’s retaliation analysed

The Iranian response has resulted in at least three people killed and dozens of injuries in Israel, according to medics. Iranian state TV, meanwhile, has reported that 20 children are among the 60 killed in a strike on a Tehran neighbourhood on Saturday.

Iranian missiles were seen entering Israeli airspace on Saturday evening.

Meanwhile, RAF jets and military assets are being sent to the Middle East after Tehran warned the UK and other allies their regional bases would be targeted if they helped defend Israel in the growing conflict between the two heavily armed countries.

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Tel Aviv: Buildings and cars destroyed

In his post, Mr Trump said: “President Putin called this morning to very nicely wish me a Happy Birthday, but to more importantly, talk about Iran, a country he knows very well. We talked at length.

“Much less time was spent talking about Russia/Ukraine, but that will be for next week. He is doing the planned prisoner swaps – large numbers of prisoners are being exchanged, immediately, from both sides.

“The call lasted approximately 1 hour. He feels, as do I, this war in Israel-Iran should end, to which I explained, his war should also end.”

Read more on Sky News:
Nuclear threat wasn’t the only reason Israel attacked Iran
US politician shot dead and another wounded – as suspect named

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State TV: Children among dozens killed in Iran

Kremlin aide Yuri Ushakov said President Putin condemned Israel’s military operation in Iran and expressed concerns about the risk of escalation.

During the conversation, the Russian leader briefed President Trump on his recent talks with the leaders of Israel and Iran – reiterating Russia’s hopes to seek mutually acceptable solutions on Iran’s growing nuclear issue.

Meanwhile, the latest round of US-Iran nuclear talks scheduled for Sunday in Muscat will not take place, a senior US administration official has told Sky’s US partner network NBC News.

However, the official said the US is “not shutting the door to future discussions”.

“While there will be no meeting on Sunday, we remain committed to talks and hope the Iranians will come to the table soon,” the official said.

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