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.
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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.
Crypto king’s jail term is end of an era
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.
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.
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.
Image: 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.
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.
Image: 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.
Image: 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.
Vladimir Putin told Donald Trump he “will not back down” from Russia’s goals in Ukraine during a phone call today, the Kremlin has said.
The Russian president spoke to his US counterpart for almost an hour, and Mr Trump “again raised the issue of an early end to military action” in Ukraine, Kremlin aide Yuri Ushakov told reporters.
In response, Mr Putin said “Russia will not back down” from its aims there, which include “the elimination of the well-known root causes that led to the current state of affairs,” Mr Ushakov said.
The phrase “root causes” is shorthand for Moscow’s argument that it was compelled to invade Ukraine in order to prevent the country from joining NATO.
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Trump and Putin’s latest call on Ukraine
Ukraine and its European allies say this is a pretext to justify what they call an imperial-style war, but Mr Trump has previously shown sympathy with Russia.
At the same time, Mr Putin told the US president that Russia is ready to continue negotiating, the aide said.
The Russian president said any prospective peace deal must see Ukraine give up its NATO bid and recognise his country’s territorial gains.
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Image: Volodymyr Zelenskyy, seen with Mr Trump in June, is pushing for Ukraine to join NATO. Pic: Reuters
He also briefed Mr Trump on agreements made last month, which saw Russia and Ukraine exchange prisoners of war and dead soldiers.
Specific dates for the third round of peace talks in Istanbul were not discussed – nor was the US decision to halt some shipments of critical weapons to Ukraine.
Mr Putin and Mr Trump’s call came after the Pentagon confirmed some weapons due to be sent to Ukraine have been held as it reviews military stockpiles.
The paused shipments include air defence missiles and precision-guided artillery, two people familiar with the situation have said.
Donald Trump’s ‘big beautiful bill’ has been passed by the US congress, sending it to the president to sign into law.
The controversial tax breaks and spending cuts package cleared its final hurdle as the Republican-controlled House of Representatives narrowly approved the bill with a 218-214 vote.
The bill delivers tax breaks Mr Trump promised in his 2024 election campaign, cuts health and food safety programmes, and zeroes out dozens of green energy incentives.
According to the nonpartisan Congressional Budget Office (CBO), it will lower tax revenues by $4.5trn over 10 years and add $3.4trn to the US’s $36.2trn debt.
But despite concerns over the 869-page bill’s price tag – and its hit to healthcare programmes – Republicans largely lined up in support, with just two rebelling on the vote.
Image: House Speaker Mike Johnson is congratulated following the vote. Pic: Reuters
Every Democrat in Congress voted against the bill, blasting it as a giveaway to the wealthy that will leave millions of Americans uninsured.
House Speaker Mike Johnson made the Republicans’ closing argument for the bill, telling Congress: “For everyday Americans, this means real, positive change that they can feel.”
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Earlier, the House’s Democratic leader Hakeem Jeffries gave a record-breaking eight-hour and 44-minute speech against it.
“The focus of this bill, the justification for all of the cuts that will hurt everyday Americans, is to provide massive tax breaks for billionaires,” he said.
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The bill’s spending cuts largely target Medicaid, the health programme that covers 71 million Americans on low incomes.
It will tighten enrolment standards, institute a work requirement and clamp down on a funding mechanism used by states to boost federal payments.
The changes could leave nearly 12 million people without health insurance, according to the CBO.
On the other side of the ledger, it will stave off tax increases that were due to hit most Americans at the end of the year, when tax cuts from President Trump’s first term were due to expire.
It also sets up new tax breaks for overtime pay, seniors and tipped income.
Sean “Diddy” Combs has been found guilty of transportation for prostitution following a landmark trial in New York – but cleared of more serious charges of sex trafficking and racketeering conspiracy.
The hip-hop mogul was accused by prosecutors of abusing and coercing three alleged victims, including his former long-term partner, singer and model Cassie Ventura, and other crimes including kidnapping, arson and blackmail.
Jurors decided not all the allegations were proven – but Combs still faces several years in prison after being convicted of transporting people across the US, including Cassie and another former girlfriend “Jane”, and paying male escorts to engage in sexual encounters.
However, with the not guilty verdict on three other more serious charges – racketeering conspiracy and two of sex trafficking – the 55-year-old has avoided a maximum possible sentence of life behind bars.
Despite a request by his defence team, he was denied bail ahead of sentencing – which has been scheduled for Friday 3 October.
Image: Combs appeared upbeat in court as the verdict was announced. Pic: Jane Rosenberg/ Reuters
Marc Agnifilo, part of Diddy’s defence team, described the ruling as “a victory of all victories”.
Outside the courthouse, he said the jury “got the situation right, or certainly right enough”.
Another of his lawyers, Nicole Westmoreland, said: “He actually battled for his freedom, for his innocence, and he did it.
“And, you know, a lot of times, people are too afraid to do it. Today is a major win to show what the system can do.”
The mixed result from the jury came not long into their third day of deliberations. In the courtroom in Manhattan, there were cheers from Combs’s family – and the rapper himself held his hands up in a prayer motion, looking at the jury, and hugged his defence lawyer Teny Geragos.
His mood seemed very different to just a day earlier – when he learned the jury had reached a verdict on four of the five charges, but were split on the racketeering charge.
After deliberating for longer on Wednesday, they came to a unanimous decision.
As the verdict sunk in, Combs appeared overwhelmed, kneeling at his chair and bowing his head in prayer once again.
“I’ll be home soon,” he said as he faced his family members. “I love you, Mum.”
Image: Combs later seemed to become overwhelmed with relief. Pic: Jane Rosenberg/ Reuters
The application for bail
Combs’s defence team argued that as he had been cleared of the most serious charges, he should be bailed ahead of sentencing.
His lawyer Marc Agnifilo said he had been a model prisoner and added: “He’s not going to flee. He’s been given his life back.”
But prosecutor Maurene Comey argued Combs had a history of violence, which Judge Arub Subramanian agreed with. “At trial, the defence conceded the defendant’s violence in his personal relationships,” he said.
After being denied bail, Combs attempted get the judge’s attention – but after consulting with Mr Agnifilo, he did not speak.
Image: Casandra ‘Cassie’ was heavily pregnant when she gave evidence at the start of the trial. Pic: Jane Rosenberg/ Reuters
Cassie ‘paved the way’
Reacting to the verdict, Cassie’s lawyer Douglas H Wigdor said that although jurors did not find Combs guilty of sex-trafficking Cassie, she had “paved the way” for the other guilty verdicts.
“By coming forward with her experience, Cassie has left an indelible mark on both the entertainment industry and the fight for justice,” he said.
“We must repeat – with no reservation – that we believe and support our client, who showed exemplary courage throughout this trial.”
Cassie, who testified heavily pregnant just three weeks before giving birth, displayed “unquestionable strength”, he added, and “brought attention to the realities of powerful men in our orbit”.
Videos of “freak off” sex sessions with male escorts were shown to jurors only during the seven-week trial, with the footage kept private from members of the public and media in court.
Former employees, along with escorts, hotel staff and police officers were among those to give evidence.
Cassie and Jane, who used a pseudonym, also testified. They told the court they were coerced into drug-fuelled “freak offs” – which were also referred to as “hotel nights” or “wild king nights” – with male escorts, and abused throughout their relationships.
Combs’s defence team presented a very different picture to show that sexual acts, including freak offs, were consensual.
They conceded the music star could be violent, had a bad temper and used drugs. He also had multiple relationships at the same time. But crucially, they said, while he was “not proud” of some of his behaviour, none of it made him guilty of the charges against him.
After hearing evidence of flights and travel for escorts and Cassie and Jane, paid for by Combs, as well as hotel bookings across the US and the Caribbean, jurors found him guilty of the transportation to engage in prostitution charges. However, they did not find that the allegations against the rapper amounted to sex trafficking or racketeering.
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CCTV footage shows Diddy ‘attacking’ Cassie in hotel
The Cassie hotel tape
Combs, known variously as Puff Daddy, P Diddy, and Diddy over the years, was once one of the most influential figures in hip-hop – famous as a producer, founder of Bad Boy Records and manager of the late Notorious BIG in the 1990s, as well as a rapper in his own right.
As an artist, he won three Grammys during his career, and had hits including I’ll Be Missing You, Come With Me, and Bad Boy For Life.
In September 2023, he received the “global icon” award from MTV and was given the key to New York City at a ceremony in Times Square, just a few miles away from the streets in Harlem where he spent his first years.
Allegations first came to prominence in November 2023, when Cassie filed a bombshell lawsuit accusing him of coercing her into unwanted sex sessions, as well as blackmail and several incidences of violence.
The suit was settled in 24 hours – for $20m, it emerged during the trial – but months later CNN aired hotel security footageshowing Combs punching and kicking Cassie and throwing her to the floor in 2016.
He apologised after the video aired, saying: “I was disgusted when I did it.”
Footage from the hotel incident was shown during the trial.
Following the verdict, the rapper now awaits sentencing. He also still faces several civil lawsuits, most of which were filed in the wake of his arrest in September 2024.