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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.

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.

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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.

FILE PHOTO: Indicted FTX founder Sam Bankman-Fried leaves the United States Courthouse in New York City, U.S., July 26, 2023. REUTERS/Amr Alfiky/File Photo
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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.

Read more:
The meteoric rise and even sharper fall of Sam Bankman-Fried

Why industry may never recover from downfall of ‘crypto king’

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
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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.

FTX logo is seen in this illustration taken March 31, 2023. REUTERS/Dado Ruvic/Illustration
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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.

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Donald Trump can seek dismissal of hush money case as sentencing postponed

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Donald Trump can seek dismissal of hush money case as sentencing postponed

A judge has postponed sentencing in Donald Trump’s hush money case and granted permission for his lawyers to seek a dismissal.

It comes after the Manhattan district attorney said he wouldn’t oppose a motion to delay the sentencing.

In May, a New York jury found Trump guilty of 34 counts of falsifying business records to commit election fraud.

It was the first time a US president had been convicted of or charged with a criminal offence.

Trump had tried to cover up “hush money” payments to a porn star in the days before the 2016 election.

When Stormy Daniels claims of a sexual liaison threatened to upend his presidential campaign, Trump directed his lawyer to pay $130,000 (£102,000) to keep her quiet.

The payment buried the story and he later won the presidency.

Trump denied the charges and said the case was politically motivated. He also denied the sexual encounter took place.

New York State Supreme Court Justice Juan Merchan today delayed the sentencing, which had been due to take place on Tuesday.

Stormy Daniels. Pic: AP
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The New York case revolved around payments to Stormy Daniels. Pic: AP

The office of district attorney Alvin Bragg had asked the judge to postpone all proceedings until Trump finishes his four-year presidency, which starts on 20 January.

Trump’s lawyers say the case should be dismissed because it will create “unconstitutional impediments” to his ability to govern.

Responding to Friday’s decision, a Trump campaign spokesman said: “The American People have issued a mandate to return him to office and dispose of all remnants of the Witch Hunt cases.”

The judge set a 2 December deadline for Trump’s lawyers to file their motion, while prosecutors have until 9 December to respond.

He did not set a new date for sentencing or indicate when he would rule on any motion to throw out the case.

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Even before Trump’s win in this month’s election, experts said a jail term was unlikely and a fine or probation more probable.

But his resounding victory over Kamala Harris made the prospect of time behind bars or probation even less likely.

Trump, 78, was also charged last year in three other cases.

One involved him keeping classified documents after he left office and the other two centre on alleged efforts to overturn his 2020 election loss.

A Florida judge dismissed the documents case in July, the Georgia election case is in limbo, and the Justice Department is expected to wind down the federal election case as it has a policy of not prosecuting a sitting president.

Trump last week nominated his lawyers in the hush money case, Todd Blanche and Emil Bove, for senior roles in the Justice department.

When he re-enters the White House, Trump will also have the power to shut down the Georgia and New York cases.

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Pam Bondi: Key proponent of Trump’s false 2020 election claims set to head justice department after Gaetz withdrawal

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Pam Bondi: Key proponent of Trump's false 2020 election claims set to head justice department after Gaetz withdrawal

Donald Trump has pledged for years to surround himself with ultra-loyalists who can mould his government to his vision without barriers. 

That’s precisely why he picked Matt Gaetz. Now he’s out, Pam Bondi is in and she’s equally loyal.

Gaetz was uniquely unpopular on Capitol Hill but ultra-MAGA and ultra-loyal to the president-elect.

He was chosen by the president-elect to do his bidding inside the Justice Department as attorney general.

Critics called his pick “a red alert moment for democracy” and the man a “gonzo agent of chaos” – language that would surely only affirm Trump’s decision in his own proudly disruptive mind.

FILE...Rep. Matt Gaetz, R-Fla., appears before the House Rules Committee at the Capitol in Washington, Friday, Sept. 22, 2023.  (AP Photo/J. Scott Applewhite, File)
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Matt Gaetz has withdrawn despite Trump putting him forward for attorney general. Pic: AP

If it wasn’t for the fact that the president-elect is himself a convicted felon, and a man found liable in a civil court of his own sexual offences, the prospect of Gaetz, with all his baggage, making it through the nomination process would have seemed remote.

But Donald Trump’s return to the White House suggested anything is possible.

And so, beyond his loyalty, Gaetz was Trump’s test for his foot soldiers on Capitol Hill. How loyal were they? Would they wave through anyone he appointed?

It turns out that Gaetz, and the storm around his private life, was too much for a proportion of them.

At least five Senate Republicans were flatly against Matt Gaetz’s confirmation. We understand that they communicated to other senators and those close to Trump that they were unlikely to be swayed.

They included the Republican old guard like Senator Mitch McConnell.

Beyond the hard “no” senators, there were between 20 and 30 other Republicans who were very uncomfortable about having to vote for Gaetz on the Senate floor.

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Trump pick Matt Gaetz withdraws

The key question is whether Gaetz was Trump’s intentional wild card crazy choice that he knew, deep down, would probably never fly.

Was Gaetz the candidate he had accepted would be vetoed by senators – who would then feel compelled to wave the rest of his nominees through?

Will Pete Hegseth’s alleged sexual impropriety concern them as they consider the suitability of the former Fox News host and army major to run the Department of Defence?

What about Tulsi Gabbard, the candidate Russian state TV calls ‘our girl’, and the appropriateness of her running America’s intelligence agencies?

These are all appointments that the politicians on Capitol Hill must consider and confirm in the weeks ahead.

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We don’t yet know who Trump will choose to direct the FBI.

There are some names being floated which will make the establishment of Washington shudder but then that’s precisely why Trump was elected. He is the disrupter. He said so at every rally, on repeat.

He was quick to pivot to another name to replace Gaetz.

Bondi is the former attorney general of Florida. Professionally she is in a different league to Gaetz. She’s been a tough prosecutor, with a no-nonsense reputation.

She is also among the most loyal of loyalists. Her attachment to Trump stretches way back.

Pam Bondi speaks during a Trump rally in November 2024. Pic: Reuters
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Pam Bondi speaks during a Trump rally in November 2024. Pic: Reuters

I first came across her in Philadelphia in November 2020 when she was among Trump surrogates claiming the election back then had been stolen from them by Joe Biden and the Democrats.

She was a key proponent of the false claims the election had been rigged and Trump was the rightful winner.

The court cases concluding that was all nonsense didn’t seem to convince her.

Now she is poised to head up the Department of Justice as the country’s top law enforcement official.

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Donald Trump on day one: Pace of change ‘like nothing you’ve seen in history’, warns campaign official

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Donald Trump can seek dismissal of hush money case as sentencing postponed

Within hours of taking office, president-elect Donald Trump plans to begin rolling out policies including large-scale deportations, according to his transition team.

Sky News partner network NBC News has spoken with more than half a dozen people familiar with the executive orders that his team plans to enact.

One campaign official said changes are expected at a pace that is “like nothing you’ve seen in history”, to signal a dramatic break from President Joe Biden’s administration.

Mr Trump is preparing on day one to overturn specific policies put in place by Mr Biden. Among the measures, reported by sources close to the transition team, are:

• The speedy and large-scale deportations of illegal immigrants

• Ending travel reimbursement for military members seeking abortion care

• Restricting transgender service members’ access to gender-affirming care

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But much of the first day is likely to focus on stopping illegal immigration – the centrepiece of Trump’s candidacy. He is expected to sign up to five executive orders aimed at dealing with that issue alone after he is sworn in on 20 January.

“There will without question be a lot of movement quickly, likely day one, on the immigration front,” a top Trump ally said.

“There will be a push to make a huge early show and assert himself to show his campaign promises were not hollow.”

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Donald Trump ally Matt Gaetz has withdrawn his name from consideration to be the next US attorney general.

But Mr Trump’s campaign pledges also could be difficult to implement.

Deporting people on the scale he wants will be a logistical challenge that could take years. Questions also remain about promised tax cuts.

Meanwhile, his pledge to end the war between Russia and Ukraine in just 24 hours would be near impossible.

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Matt Gaetz withdraws from top job
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Even so, advisers based at Mr Trump’s Mar-a-Lago resort or at nearby offices in West Palm Beach, Florida, are reportedly strategising about ending the wars in Ukraine and the Middle East.

Following his decisive victory on 5 November, the president-elect has moved swiftly to build a cabinet and senior White House team.

As of Thursday, he had selected more than 30 people for senior positions in his administration, compared with just three at a similar point in his 2016 transition.

Stephen Moore, a senior economic adviser in Mr Trump’s campaign, told NBC News: “The thing to realise is Trump is no dummy.

“He knows he’s got two to three years at most to get anything done. And then he becomes a lame duck and we start talking about [the presidential election in] 2028.”

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