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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.

Larry David appeared in an advert for FTX during the Super Bowl in 2022
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Larry David appeared in an advert for FTX during the Super Bowl in 2022

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.

A year later, a jury convicted the fallen entrepreneur of fraud and money laundering after just five hours of deliberations – based on evidence from close colleagues who had turned against him.

Now, “SBF” is beginning a lengthy prison sentence of 25 years for what prosecutors have described as “one of the biggest financial frauds in American history”.

His punishment may be little comfort to five million FTX customers who were suddenly locked out of their accounts as the company entered bankruptcy – and are yet to receive any compensation.

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November: ‘Crypto king’ guilty of fraud

An estimated 80,000 of Bankman-Fried’s victims were based in the UK. Some of them had millions of pounds tied up in the company after entrusting him with their life savings.

While slick marketing campaigns had presented FTX as a safe way to invest in volatile cryptocurrencies, the reality behind the scenes couldn’t have been more different.

Secret back doors had been established that allowed SBF’s other company, Alameda Research, to access money belonging to FTX customers and make risky bets without their knowledge.

Meanwhile, executives were spending lavishly. Private jets ferried Amazon orders from Miami to the firm’s headquarters in the Bahamas, £12m was spent on luxury hotel stays in just nine months, and employees in the US were allowed to order £160 of food deliveries each a day.

The fallout from FTX’s demise also reaches as far as the White House. Bankman-Fried was one of the largest donors to Joe Biden’s campaign in 2020, with the president subsequently facing pressure to return millions of dollars.

Read more:
Who is Sam Bankman-Fried?
SBF ‘wanted to be US president’

Sam Bankman-Fried's colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters
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Sam Bankman-Fried’s colleague and on-off girlfriend Caroline Ellison testified against him. Pic: Reuters

A new chief executive has been tasked with untangling where all the money went. Soon after FTX went under, he said: “Never in my career have I seen such a complete failure of corporate controls.”

Unusually, and thankfully, FTX victims are expected to be compensated in full eventually – kind of.

The payouts they receive will be based on what cryptocurrencies were worth in November 2022. But Bitcoin was trading at £16,000 back then and is now worth £55,500.

Bizarre plans to bring FTX out of bankruptcy and reopen the exchange have also been abandoned.

Other entrepreneurs in this space – who had loyal, cult-like followings and huge profiles – are also facing jail time.

Changpeng Zhao has pleaded guilty to money laundering charges. Reuters
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Changpeng Zhao has pleaded guilty to money laundering charges. Pic: Reuters

Changpeng Zhao, who ran the world’s biggest crypto exchange Binance, sensationally resigned last year after pleading guilty to money laundering violations in the US.

His company had allowed individuals in Syria, Iran and Russian-occupied parts of Ukraine to evade economic sanctions – and allegedly made it easy for terrorists and criminals to move money.

The billionaire faces jail time when he is sentenced next month.

Do Kwon created two cryptocurrencies that spectacularly collapsed in May 2022, with investors losing an estimated $40bn (£31.7bn) in a matter of days.

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He later went on the run but was captured in Montenegro last year after attempting to fly to Dubai using a fake passport.

A civil fraud trial against Kwon and his company Terraform Labs began this week, with prosecutors warning: “Terra was a fraud, a house of cards, and when it collapsed, investors nearly lost everything.”

Do Kwon created two cryptocurrencies that lost tens of billions of dollars - then went on the run. Pic: Reuters
Image:
Do Kwon created two cryptocurrencies that lost tens of billions of dollars – then went on the run. Pic: Reuters

In a way, Bankman-Fried’s sentence marks the end of an era for crypto – when extravagant excesses and a lack of regulatory oversight were the norm.

Bitcoin’s recent gains have been driven by regulated products that allow investors to gain exposure to the cryptocurrency’s price without owning it directly.

And many of these products are offered by established, traditional finance firms like BlackRock, which is the world’s largest asset management company.

A damning report described the rise and fall of FTX as a tale of “hubris, incompetence and greed” – with Bankman-Fried and his inner circle showing little regard for the financial wellbeing of his customers.

Millions of people had their fingers burned, and many will be put off from ever investing in cryptocurrencies again.

But while the industry has learned some lessons, the crypto market’s rapid surge in recent months mean there’s a real risk of another bubble forming – and new bad actors taking advantage of investors looking for a piece of the action.

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P Diddy: ‘Gut-wrenching’ video appears to show Sean Combs assaulting singer Cassie in 2016

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P Diddy: 'Gut-wrenching' video appears to show Sean Combs assaulting singer Cassie in 2016

“Gut-wrenching” CCTV footage which appears to show Sean Combs attacking singer Cassie in a Los Angeles hotel “has only further confirmed the disturbing and predatory behaviour” of the rapper, her lawyer has said.

The 54-year-old, whose homes in Los Angeles and Miami were raided by Homeland Security Investigations agents in March, has faced a series of public allegations of physical and sexual violence.

Footage obtained by CNN appears to show Combs also known as P Diddy and Puff Daddy – wearing only a white towel as he punches and kicks Cassie in a Los Angeles hotel hallway on 5 March 2016.

The R&B singer, whose legal name is Cassandra Ventura, was his protege and girlfriend at the time.

Pic: CNN via AP
Pic: CNN via AP
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Pics: CNN via AP

Read more: What is Sean Combs accused of and what has he said?

The footage also shows Combs shoving and dragging her across the floor, as well as throwing a vase in her direction.

It closely resembles the description of an incident at the now-closed InterContinental Hotel in Los Angeles described in a lawsuit filed by Cassie in November that alleged years of sexual abuse and other violence from Combs.

The case was settled the day after it was filed.

Sean Combs and Cassie in 2017. Pic: PA
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Sean Combs and Cassie in 2017. Pic: PA

Several more lawsuits were filed in the following months, along with a federal criminal sex-trafficking investigation that led authorities to raid Combs’ mansions in Los Angeles and Miami.

Representatives for Combs did not immediately comment on the video. He has previously denied the allegations in the lawsuits and his lawyers have said he denies any wrongdoing.

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P Diddy’s homes raided

Cassie’s lawyer said: “The gut-wrenching video has only further confirmed the disturbing and predatory behaviour of Mr Combs.

“Words cannot express the courage and fortitude that Ms Ventura has shown in coming forward to bring this to light.”

According to NBC News, Sky News’ US partner, if Cassie were to make a complaint the LAPD could investigate, but charges would likely be declined by the district attorney because California law has a one-year statute of limitations for assault and the alleged incident happened nearly eight years ago.

CNN did not say how it obtained the video, but noted it verified the location it was shot by comparing the footage to publicly available images of the InterContinental Hotel.

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Man sentenced to 30 years for bludgeoning Nancy Pelosi’s husband with hammer

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Man sentenced to 30 years for bludgeoning Nancy Pelosi's husband with hammer

The man convicted of attacking then-US House speaker Nancy Pelosi’s husband with a hammer has been sentenced to 30 years in prison.

David DePape, 44, was found guilty last November of attempted kidnapping of a federal official and assault on the immediate family member of a federal official.

Judge Jacqueline Scott Corley handed down the sentence of 30 years in prison after prosecutors asked for a 40-year prison term.

David DePape. Pic: Michael Short/San Francisco Chronicle via AP
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David DePape in 2013. Pic: Michael Short/San Francisco Chronicle via AP

DePape was given 20 years for one count and 30 years for another count, to run concurrently. He was also given credit for the 18 months he has been in custody.

DePape admitted during trial testimony he broke into the Pelosis’ San Francisco home on 28 October 2022 intending to hold Ms Pelosi hostage and “break her kneecaps” if she lied to him.

He also admitted bludgeoning Paul Pelosi with a hammer after police showed up, saying his plan to end what he viewed as government corruption was unravelling.

The attack on Mr Pelosi, who was 82 at the time, was captured on police body camera.

Defence lawyers argued DePape was motivated by his political beliefs, not because he wanted to interfere with Ms Pelosi’s official duties as a member of Congress, making the charges against him invalid.

One of his lawyers said during closing arguments that DePape was caught up in conspiracy theories.

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Investigators work outside the home of Paul Pelosi, the husband of House Speaker Nancy Pelosi, in San Francisco, Friday, Oct. 28, 2022. Paul Pelosi, was attacked and severely beaten by an assailant with a hammer who broke into their San Francisco home early Friday, according to people familiar with the investigation. (AP Photo/Eric Risberg)
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The attack happened at the couple’s San Francisco home in October 2022. Pic: AP

Plans to wear inflatable unicorn costume during interrogation

During the trial, the Canadian, who moved to the US more than 20 years ago, testified he believed news outlets repeatedly lied about former president Donald Trump.

DePape also told jurors he had planned to wear an inflatable unicorn costume and record his interrogation of the Democratic speaker, who was not at home at the time of the attack, to upload it online.

Prosecutors said he had rope and zip ties with him, and detectives found body cameras, a computer and a tablet.

‘A tremendous shock’

Mr Pelosi also testified at the trial, recalling how he was awakened by a large man bursting into the bedroom and asking: “Where’s Nancy?”

He said he responded that his wife was in Washington and DePape said he would tie him up while they waited for her.

“It was a tremendous sense of shock to recognise that somebody had broken into the house, and looking at him and looking at the hammer and the ties, I recognised that I was in serious danger, so I tried to stay as calm as possible,” Mr Pelosi told jurors.

State court charges

DePape is also charged in state court with assault with a deadly weapon, elder abuse, residential burglary and other felonies. Jury selection for that trial is expected to start on Wednesday.

Mr Pelosi suffered two head wounds in the attack, including a skull fracture. His right arm and hand were also injured.

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Scottie Scheffler: Golf star ‘rattled’ and ‘in shock’ after being arrested by police

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Scottie Scheffler: Golf star 'rattled' and 'in shock' after being arrested by police

World number one golfer Scottie Scheffler says he was “rattled” and “in shock” after he was arrested and charged by police this morning.

The 27-year-old reportedly tried to get around a traffic jam caused by a fatal accident near the Valhalla Golf Club in Louisville, Kentucky, at around 6am local time (11am UK time) on Friday.

He is due to appear in court on Tuesday after being charged with second-degree assault of a police officer, third-degree criminal mischief, reckless driving, and disregarding signals from officers directing traffic.

Scheffler was released at 8:40am local time (1:40pm UK time) and allowed to return to the golf course to play his second round of the PGA Championship, where he currently sits three shots off the lead.

Speaking to reporters after his round, Scheffler said: “It was a chaotic situation and a big misunderstanding. My head is still spinning.

“I spent some time warming up in a jail cell, which was a first for me.

“I was pretty rattled, to say the least… I was never angry, I was just in shock. I was shaking for about an hour.

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“Coming out here and trying to play today was definitely a challenge, but I did my best to control my mind and control my breathing… just try to play golf.

“I knew there was going to be a lot of distractions… but to be honest, it was great having the fans behind me. I felt they were really glad to have me out here competing today.”

Police earlier released a mugshot taken of Scheffler while he was wearing an orange jailed-issued jumpsuit.

The fatal crash occurred this morning when a bus struck and killed a man as he was crossing the road near the front gate of the Valhalla Golf Club.

 Scottie Scheffler tees off No. 10 to begin his second round of the PGA Championship, May 17, 2024, at Valhalla Golf Club in Louisville, Kentucky. Pic: AP
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Scottie Scheffler tees off hours after being detained and handcuffed. Pic: AP

Tournament officials said they were “devastated” by the death of local man John Mills, who was working for an on-site vendor at Valhalla.

Scheffler, who was not involved in the accident, was allegedly trying to drive around the crash site when he failed to stop for a police officer.

An officer is then said to have grabbed on to Scheffler’s car.

The golfer drove around 10 to 20 yards before stopping his vehicle at the entrance to Valhalla, according to an ESPN reporter Jeff Darlington who was on the scene.

Darlington said: “At that point the police officer instructed Scheffler to get out of the car.

“He rolled down the window, the police officer grabbed his arm and started pulling at it. He reached inside, opened the car door, pulled Scheffler out, pushed him up against the car, immediately placed him in handcuffs.”

According to the police report, a detective stopped Scheffler’s car and “attempted to give instruction”.

The report continued: “Subject refused to comply and accelerated forward, dragging Detective Gillis to the ground. Detective Gillis suffered pain, swelling and abrasions to his left wrist and knees.

“He was transported to the hospital for further medical treatment by emergency medical personnel. Detective Gillis’ uniform pants, valued at approximately $80, were damaged beyond repair.”

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LOUISVILLE, KY - MAY 17: Fans look on as Scottie Scheffler walks off the No. 10 tee box after beginning his second round of the PGA Championship, May 17, 2024, at Valhalla Golf Club in Louisville, Kentucky. Pic: AP
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Scottie Scheffler was given a roar of support as he teed off in the second round. Pic: AP

In a statement, Scheffler’s attorney Steve Romines said the player was proceeding as directed by a traffic officer and is alleged to have disregarded signals from another officer “in the confusion”.

“Multiple eyewitnesses have confirmed that he did not do anything wrong but was simply proceeding as directed,” the statement added.

“He stopped immediately upon being directed to and never at any point assaulted any officer with his vehicle. We will litigate this matter as needed.”

Speaking after a second round, Scheffler expressed his sympathies to the family of Mr Mills.

“I can’t imagine what they’re going through this morning,” Scheffler said.

“My situation will get handled… I can’t get into what transpired… my heart goes out to the family.”

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