Sam Bankman-Fried: Disgraced ‘crypto king’ jailed for 25 years after stealing billions of dollars from FTX customers
Disgraced crypto entrepreneur Sam Bankman-Fried has been sentenced to 25 years in prison after being convicted of stealing billions of dollars from his customers.
He was the chief executive of FTX, which suddenly went bankrupt in November 2022 – leaving millions of users frozen out of their accounts and unable to make withdrawals.
The 32-year-old American could have faced up to 100 years behind bars – but last month, his lawyers argued such a sentence would have been “barbaric” and a five-year term would be more appropriate.
Initial reports said he had been sentenced to 20 years – but this has since been corrected to 25.
Prosecutors had asked the judge to jail Bankman-Fried for 40 to 50 years, arguing the public needed protecting from the fraudster and a harsh punishment would deter other criminals.
“The defendant victimised tens of thousands of people and companies, across several continents, over a period of multiple years,” prosecutors said in a court filing.
“He stole money from customers who entrusted it to him; he lied to investors; he sent fabricated documents to lenders; he pumped millions of dollars in illegal donations into our political system; and he bribed foreign officials. Each of these crimes is worthy of a lengthy sentence.”
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Prosecutors also said Bankman-Fried had cost customers, investors and lenders over $10bn (£7.9bn) by misappropriating funds to fuel his quest for influence and dominance in the new industry, and had illegally used money from FTX depositors to cover his expenses, which included purchasing luxury properties in the Caribbean, alleged bribes to Chinese officials and private planes.
At the sentencing hearing in Manhattan, Judge Lewis Kaplan said the businessman lied on the witness stand when he insisted he had no knowledge of customer funds being used this way.
The judge also described Bankman-Fried’s claim that victims will be paid back in full as “misleading and logically flawed”.
“A thief who takes his loot to Las Vegas and successfully bets the stolen money is not entitled to a discount on the sentence by using his Las Vegas winnings to pay back what he stole,” Judge Kaplan warned.
The judge said that the sentence reflected “a risk that this man will be in a position to do something very bad in the future”.
“And it’s not a trivial risk at all.”
He added that it was “for the purpose of disabling him to the extent that can appropriately be done for a significant period of time”.
Before he was sentenced, Mr Bankman-Fried apologised in a rambling statement.
Sam Bankman-Fried leaving court last July. Pic: Reuters
“A lot of people feel really let down. And they were very let down. And I’m sorry about that. I’m sorry about what happened at every stage,” he said.
“My useful life is probably over. It’s been over for a while now, from before my arrest.”
Judge Kaplan said he would advise the Federal Bureau of Prisons to send him to a medium-security prison or less near the San Francisco area because he’s unlikely to be a physical threat to other inmates or prison staff, and his autism and social awkwardness would make him vulnerable to other inmates in a high-security location.
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It took just five-and-a-half hours for a jury in New York to convict him of two counts of fraud and five of conspiracy last November.
Three people from Bankman-Fried’s inner circle – including his former girlfriend Caroline Ellison – pleaded guilty to related crimes and testified at his trial.
Sam Bankman-Fried’s colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters
Bankman-Fried’s conviction followed a dramatic fall from grace from his time as chief executive of FTX – the second-largest cryptocurrency exchange in the world at one time – when he was worth billions of dollars on paper.
FTX allowed investors to buy dozens of virtual currencies, from Bitcoin to more obscure ones like Shiba Inu Coin.
Pic: Reuters
Flush with billions of dollars of investors’ cash, Bankman-Fried rode a crest of success that included a Super Bowl advertisement and celebrity endorsements from stars like quarterback Tom Brady, basketball star Stephen Curry and comedian Larry David.
But after the collapse of cryptocurrency prices in 2022, Bankman-Fried tried to plug the holes in the balance sheet of FTX’s hedge fund affiliate, known as Alameda Research.
Bankman-Fried’s victims – an estimated 80,000 of whom are based in the UK – remain out of pocket, with some losing their life savings.
Prosecutors described his crimes as one of the biggest financial frauds in US history.
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.
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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
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.
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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.
US
Travis Kelce follows girlfriend Taylor Swift into entertainment to take up role in new horror series Grotesquerie
Travis Kelce is used to drama on the pitch – now he’s set to experience it on the small screen.
Following girlfriend Taylor Swift into the world of entertainment, the NFL star is to take on his first major acting role in a new series by renowned producer Ryan Murphy, the creative powerhouse behind hit shows including Nip/Tuck, Glee, American Horror Story, and Pose.
Kelce will appear alongside Niecy Nash-Betts, Courtney B Vance and British star Lesley Manville in horror drama Grotesquerie, being made by Disney’s FX and due to be released in the US in the autumn.
Pic: AP/John Locher
“Guys, guess who I am working with on Grotesquerie…” Nash-Betts has announced in a video shared on Instagram.
Kelce then appears in the frame, responding: “Jumping into new territory… with Niecy.” He has also shared the clip with his 6.4 million followers on Instagram.
“This is what happens when winners link up!!?” Nash-Betts captioned the video. “@killatrav Welcome to Grostequerie!”
Murphy has become known for casting high profile stars who are not actors in his shows, with singers Lady Gaga and Stevie Nicks, model Naomi Campbell and reality star Kim Kardashian all taking parts in American Horror Story.
Nash-Betts recently won an Emmy for another Murphy series, Dahmer – Monster: The Jeffrey Dahmer Story, while Kelce won a third Super Bowl with the Kansas City Chiefs earlier this year – greeted with a kiss by Swift at the end of the game.
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The show also features British actress Lesley Manville. Pic: PA
The American football tight end has been making waves in Hollywood since his high-profile relationship with the pop megastar began last year.
The sports star hosted the US sketch show Saturday Night Live in March 2023, and was recently announced as the host of the quiz show, Are You Smarter Than A Celebrity?
He also has an American football podcast with his brother Jason and previously experimented with reality TV with dating series Catching Kelce in 2016.
Swift made the silver screen herself last year thanks to her sell-out Eras tour pop concert film. She brings the tour to the UK in June.
Legislation dubbed the “Taylor Swift bill” has passed in Minnesota in an effort to help people buy concert tickets.
The bill, officially called House File 1989 in reference to Taylor Swift’s hit album and the year she was born, was signed into Minnesota law on Tuesday.
It will require sellers offering tickets to people in the state or tickets for concerts being held there to disclose all fees up front and prohibit resellers from selling more than one copy of a ticket, among other measures.
Minnesota State Representative Kelly Moller, chief author of the bill, pushed for the legislation after she tried to get tickets to one of Swift’s concerts in 2022.
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Ms Moller said she was among thousands of people who became stuck in ticket sales company Ticketmaster’s system after it crashed amid the huge demand for Swift concert tickets and attacks from bots, which tried to buy tickets for resale at inflated prices.
The situation led to congressional hearings but no federal legislation.
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Hidden meanings in Taylor Swift album?
Governor Tim Walz, who signed the bill into law at First Avenue, a popular concert venue in downtown Minneapolis, said it was “protection so you don’t get a bad ticket, a fraudulent ticket, and resellers can’t snatch them all up before you get an opportunity”.
Two young girls – one wearing a shirt that said “A LOT going on at the moment” in a nod to Swift, and another wearing a shirt that said “Iowa 22” in reference to basketball star Caitlin Clark – attended the bill signing with their dad, Mike Dean, who testified in support of it.
An eras tour ticket. Pic: Fernando Gens/picture-alliance/dpa/AP Images
Mr Dean said his daughter came to him in December and said she wanted to see Clark play. He said the website initially showed the tickets would cost $300 total, but they ended up costing over $500 because of hidden fees.
The timer had begun in the online checkout process, so he had just minutes to decide whether to buy the tickets for the higher price or lose them.
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He ultimately bought them, but he told the Associated Press these practices mean customers can’t make informed decisions. The new law, he said, will bring transparency to the process.
Sky News contacted Ticketmaster for comment.
A spokesperson for fellow ticket sales giants StubHub said: “StubHub has long advocated for legislation that protects fans from anti-competitive and anti-consumer practices in the ticket buying process.
“We share the goals of HF1989 and look forward to continuing discussions with policymakers to advance policies that provide more transparency, more control, and more choice for ticket buyers.”
The law takes effect from 1 January 2025 and applies to tickets sold on or after that date.
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