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.
The producer of Charlie Kirk’s podcast has claimed that a “miracle” stopped more people being killed by the bullet that hit the right-wing influencer.
Andrew Kolvet claimed to have spoken to a surgeon that tried to save Mr Kirk’s life, and posted on social media to discuss the apparent lack of an exit wound.
A prominent right-wing figure in the US, Mr Kirk was a staunch ally of President Donald Trump and was known for his conservative viewpoints on abortion, religion and LGBT issues.
Mr Trump and other public figures are expected to be in Arizonaon Sunday for a memorial service for Mr Kirk which is expected to draw 100,000 people.
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Prosecutors detail case against Charlie Kirk’s alleged killer
Mr Kolvet, executive producer of the Charlie Kirk Show, apologised for the “somewhat graphic” nature of his post on X.
In it, he discussed what he said was a lack of an exit wound from the bullet, despite it being “a high powered, high velocity round”.
Mr Kolvet included what he said were quotes from a surgeon who operated on Mr Kirk.
“It was an absolute miracle that someone else didn’t get killed,” Mr Kolvet quoted the surgeon as saying.
“His bone was so healthy and the density was so so impressive that he’s like the man of steel. It should have just gone through and through. It likely would have killed those standing behind him too.”
Mr Kolvet said what happened was “remarkable” and “miraculous”.
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Crowds chant at Charlie Kirk vigil at Texas university
President Trump and JD Vance are expected to be among the prominent MAGA members who will pay tribute to Mr Kirk at the memorial event.
It will take place at State Farm Stadium, the home of the Arizona Cardinals NFL team, amid a heavy law enforcement presence.
Image: State Farm Stadium in Arizona. Pic: Reuters
President Trump has blamed the “radical left” for the death of Mr Kirk, whom he credited for helping him win the 2024 presidential election.
It comes as the death of Mr Kirk has turned into a debate over the First Amendment.
While they have repeatedly criticised what they claim are assaults on free speech, members of the MAGA movement appear to be taking a different stance when the subject is one of their own, launching attacks on people they deem to be making disparaging comments about Mr Kirk.
Dozens of people, from journalists to teachers, have already lost their jobs for allegedly making offensive comments about the podcaster.
Late-night chat show host Jimmy Kimmel was pulled from the air indefinitely by ABC following a backlash from the Trump-appointed head of the Federal Communications Commission over the comedian’s remarks about Mr Kirk.
The State Department also has warned it would revoke the visas of any foreigners who celebrated his assassination.
Lawyers for Luigi Mangione have called on a judge to block federal prosecutors from seeking the death penalty against him.
Mangione’s legal team says the 27-year-old’s case has been turned into a “Marvel movie” after a failed bid by the US Justice Department to indict him on terrorism charges over the fatal shooting of UnitedHealthcare chief executive Brian Thompson in New York on 4 December.
New York state judge Gregory Carro said there was no evidence that the killing, which took place as Mr Thompson walked into an investor conference at the New York Hilton Midtown hotel, amounted to a terrorist act.
But Judge Carro upheld second-degree murder charges, which suggest there was malicious intent – but not that it was premeditated.
US Attorney General Pam Bondi has called for Mangione to face capital punishment, describing the charges against him as a “premeditated cold-blooded assassination that shocked America”.
But in the new court filing, Mangione’s legal team argues federal prosecutors have “violated Mr Mangione’s constitutional and statutory rights” by “staging a dehumanizing, unconstitutional ‘perp walk’ where he was televised, videotaped, and photographed clambering out of a helicopter in shackles” on the way to his first court appearance.
The legal team, led by former Manhattan prosecutor Karen Friedman Agnifilo, also claims the death penalty case has been “fatally prejudiced” after President Donald Trump commented on it on Fox News.
Despite laws that prohibit any pre-trial commentary that could prejudice the defendant’s right to a free trial, he told the network on Thursday: “Think about Mangione. He shot someone in the back, as clear as you’re looking at me or I’m looking at you.”
Image: UnitedHealthcare chief executive Brian Thompson.
Pic: UnitedHealth Group/AP
The defence team’s 114-page court filing reads: “There is a high bar to dismissing an indictment due to pretrial publicity.
“However, there has never been a situation remotely like this one where prejudice has been so great against a death-eligible defendant.”
Federal prosecutors have until 31 October to respond to the documents.
Mangione has pleaded not guilty to all the state charges against him, which cannot result in the death penalty and only life imprisonment, unlike federal ones. He has also pleaded not guilty to the federal charges.
He is due back in court for a pre-trial hearing in the state case on 1 December and the federal case on 5 December.
The 27-year-old was arrested five days after Mr Thompson was killed – when he was spotted at a McDonald’s in Altoona, Pennsylvania, around 230 miles west of New York City.
Journalists at the Pentagon have been told they could be barred if they gather or report information that officials haven’t approved first.
Reporters’ access to the iconic building, the headquarters of the US defence department, is also being curtailed.
Pete Hegseth, the defence secretary, posted on X: “The ‘press’ does not run the Pentagon – the people do.
“The press is no longer allowed to roam the halls of a secure facility. Wear a badge and follow the rules – or go home.”
A memo announcing the changes was sent to reporters on Friday, informing them “information must be approved for public release by an appropriate authorizing official before it is released, even if it is unclassified”.
They must sign an agreement agreeing to the new rules or face having their press pass revoked.
Journalists’ groups said it was a dangerous move that would seriously restrict their ability to hold defence officials to account.
The National Press Club called it “a direct assault on independent journalism at the very place where independent scrutiny matters most: the US military”.
The Society of Professional Journalists said it “would deny the American people the transparency and accountability they deserve”.
“This policy reeks of prior restraint – the most egregious violation of press freedom under the First Amendment – and is a dangerous step toward government censorship,” it said.
“Attempts to silence the press under the guise of ‘security’ are part of a disturbing pattern of growing government hostility toward transparency and democratic norms.”
Image: The Pentagon is home to the newly rebranded Department of War
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The first year of US President Donald Trump’s second term has seen several embarrassing episodes for the Pentagon.
A journalist revealed in March that he had accidentally been included on a group chat, which included the defence secretary and vice president, discussing plans to attack Houthi rebels in Yemen.
The Pentagon said no classified information had been shared but opponents said it showed a worryingly lax approach that could endanger US troops.
Doubts were also raised about America’s bombing of Iran’s nuclear sites earlier this year after a leaked intelligence report suggested the attack had only set the regime back “by months”.
President Trump and the CIA both hit back hard against the report, with the president insisting the underground facilities had been “blown to kingdom come”.