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.
“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.
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.
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.
A pizza delivery woman stabbed a pregnant customer over a $2 tip, authorities in the US say.
Brianna Alvelo, 22, is charged with attempted murder after allegedly stabbing the woman multiple times at a motel in Kissimmee, Florida.
The victim, her boyfriend and her five-year-old daughter were staying at the Riviera Motel to celebrate a birthday and ordered Marco’s pizza on Sunday, according to a court document reported by Sky News’ US sister outlet NBC News.
Alvelo delivered the pizza which cost around $33 (£26) and was asked to provide change for a $50 bill but did not have the change, the affidavit said.
The woman then searched for smaller bills and in the end gave Alvelo a $2 tip.
She told police that some time later she heard a loud knocking on the door. A man and a woman wearing masks and all black forced themselves into the room when she opened the door, she said.
The man brandished a silver revolver and demanded that the woman’s boyfriend go into the bathroom and the other person, believed to be Alvelo, pulled out a pocketknife, the document said.
As the woman turned to shield her child she felt a strike on her lower back, she said.
She then “threw her daughter onto the bed and attempted to pick up her phone”, the affidavit said, but Alvelo grabbed it and smashed it.
Alvelo then “began striking her multiple times with the knife”, according to the affidavit. The man who had the gun then yelled it was time to go, stopping the assault, it said.
The judge overseeing the case of a woman who says she was raped by Jay-Z and Sean “Diddy” Combs when she was 13 has criticised the “inappropriate” behaviour of Jay-Z’s lawyer.
In a written order, Judge Analisa Torres hit out at Alex Spiro for what she described as his combative motions and “inflammatory language” against the plaintiff’s lawyer, Tony Buzbee.
The Manhattan judge has said she can proceed anonymously at this stage but may be required to reveal her identity at a later date.
Combs remains in a Brooklyn jail awaiting trial on federal sex trafficking and racketeering charges. He has pleaded not guilty.
He is facing a wave of sexual assault lawsuits, many of which were filed by Texas lawyer Mr Buzbee, who says his firm represents more than 150 people, both men and women, alleging sexual abuse and exploitation by Combs.
The lawsuits allege many individuals were abused at parties in New York, California and Florida after being given drugged drinks.
Combs’ lawyers have dismissed Mr Buzbee’s lawsuits as “shameless publicity stunts, designed to extract payments from celebrities who fear having lies spread about them, just as lies have been spread about Mr Combs”.
Jay-Z, whose real name is Sean Carter, previously said in a statement that Mr Buzbee was trying to blackmail him to settle the plaintiff’s allegations.
Mr Buzbee said in an email that his firm does not comment on court rulings.
In her lawsuit, the woman claims Jay-Z and Sean Combs raped her when she was 13 after the MTV Video Music Awards in 2000.
Both men strenuously deny the allegations.
Mr Spiro has previously asked the judge to dismiss Jay-Z from the woman’s lawsuit.
Citing an interview the plaintiff did with Sky’s US partner NBC News, Mr Spiro wrote that the broadcast revealed “glaring inconsistencies and outright impossibilities” in the plaintiff’s story.
Judge Torres wrote in her order on Thursday that Mr Spiro had submitted a “litany of letters and motions attempting to impugn the character of Plaintiff’s lawyer, many of them expounding on the purported ‘urgency’ of this case”.
She added: “Carter’s lawyer’s relentless filing of combative motions containing inflammatory language and ad hominem attacks is inappropriate, a waste of judicial resources, and a tactic unlikely to benefit his client. The court will not fast-track the judicial process merely because counsel demands it.”
She said Mr Spiro – who had accused the plaintiff’s lawyer of having a “chronic inability to follow the rules” – had failed to follow the rules himself. She warned him against future “unacceptable” behaviour.
The woman, who was 23 at the time, said she felt sick and fell unconscious after being served two premade drinks by waitresses, later waking up in hospital with a ripped shirt, missing underwear and shoes, and no recollection of how she got there.
The suit said the woman was left with pain in her vagina for around a week, which she believed was from rough intercourse.
She also said an unknown woman with a New York number later called her, allegedly threatening her to keep quiet.
Combs’ attorney has called the allegations “pure fiction”.
As well as Combs, the woman is also suing Bad Boy Entertainment Holdings, which Combs founded; Atlantic Records, which she said facilitated the event; Mike Savas, a promoter for Atlantic at the time; Delta Airlines, which flew her to New York; KKJamz 105.3, the radio station she said held the contest; and the Roger Smith Hotel, where she stayed.
Ten “John and Jane Does” are also listed as defendants.
Donald Trump says that when he takes power next month he will direct the US Justice Department to “vigorously pursue” the death penalty.
The US president-elect, 78, said he would do so to protect Americans from what he called “violent rapists, murderers and monsters”.
Mr Trump was responding to President Joe Biden’s decision to commute the sentences of almost all federal inmates on death row – whom Mr Trump called “37 of the worst killers in our country”.
“When you hear the acts of each, you won’t believe that he did this. Makes no sense,” Mr Trump posted on his social media platform Truth Social.
“Relatives and friends are further devastated. They can’t believe this is happening!”
He continued: “As soon as I am inaugurated, I will direct the Justice Department to vigorously pursue the death penalty to protect American families and children from violent rapists, murderers, and monsters.
“We will be a Nation of Law and Order again!”
President Biden, 82, announced on Monday that he would reduce the sentences of 37 of the 40 federal death row prisoners to life in prison without the possibility of parole, saying he was “guided by my conscience and my experience as a public defender”.
The three others the president did not spare are Robert Bowers, who fatally shot 11 people at a Pittsburgh synagogue in 2018; Dylann Roof, who gunned down nine black churchgoers in Charleston, South Carolina, in 2015; and Dzhokhar Tsarnaev, who carried out a 2013 bombing at the Boston Marathon that killed three people and injured almost 300 others.
‘I condemn these murderers’
Despite sparing the lives of 37, Mr Biden added: “Make no mistake: I condemn these murderers, grieve for the victims of their despicable acts, and ache for all the families who have suffered unimaginable and irreparable loss.”
During Mr Trump’s first term in office between 2017 and 2021, the US Justice Department put 13 federal inmates to death.
He has since said he would like to expand capital punishment to include child rapists, migrants who kill US citizens and law enforcement officers, and those convicted of drug and human trafficking.
Mr Biden, who ran for president opposing the death penalty, put federal executions on hold when he took office in January 2021.
His latest decisions come after a coalition of criminal justice advocacy groups, former prosecutors and business leaders wrote letters to the White House asking for Mr Biden to commute the sentences ahead of Mr Trump’s inauguration on 20 January.
Pope Francis also appealed to Mr Biden, who is Catholic, to reduce the sentences to imprisonment.
Unlike executive orders, clemency decisions cannot be reversed by a president’s successor, although the death penalty can be sought more aggressively in future cases.