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The former boss of one of the world’s biggest cryptocurrency exchanges has been criticised after he was charged with defrauding investors out of $1.8bn (£1.5bn).

Sam Bankman-Fried, the founder of FTX, was charged by the US Securities and Exchange Commission (SEC).

John Ray, who was named Chief Executive of FTX after Bankman-Fried stepped down and the company filed for bankruptcy on 11 November, criticised the founder’s leadership and explained what led to the collapse of FTX.

Giving evidence in a congressional hearing in Washington, Mr Ray said there was “virtually no distinction” between the operations of FTX and Alameda Research – Bankman-Fried’s first business.

According to the SEC complaint, Bankman-Fried diverted customer funds to Alameda, without telling it.

Mr Ray said the FTX group’s collapse appears to stem from “absolute concentration of control in the hands of a small group of grossly inexperienced, non-sophisticated individuals.”

He added that there was “literally no record-keeping whatsoever” and said employees would communicate invoicing and expenses on Slack.

Congressman Brad Sherman also raised concerns about crypto and said: “My fear is that we’ll view Sam Bankman-Fried as just one big snake in a crypto garden of Eden. The fact is crypto is a garden of snakes. From the outside crypto looks like a non-fungible token…But in reality, the hope of crypto is to be a currency to compete with the US dollar.”

The value of FTX's FTT token has collapsed over the past month. Pic: CoinMarketCap
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The value of FTX’s FTT token has collapsed over the past month. Pic: CoinMarketCap

Bankman-Fried was arrested in the Bahamas after authorities there received formal notice that separate criminal charges had been filed against him in the US.

The 30-year-old, whose net worth peaked at $26bn (£21bn), ran the firm from the island until he stepped down as chief executive last month.

The funds amassed at Alameda were allegedly used to make undisclosed venture investments, lavish property purchases, and large political donations.

Founder built a ‘house of cards on a foundation of deception’

“We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto,” said SEC chair Gary Gensler.

He has been charged with eight counts, including conspiracy to commit money laundering.

Bankman-Fried is also charged with counts tied to wire and securities fraud, as well as conspiracy to defraud the United States and violate campaign finance laws.

John Ray at a US House Financial Services Committee hearing
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John Ray at a US House Financial Services Committee hearing

How did we get here?

Regarding the separate charges which led to his arrest in the Bahamas, those are expected to be revealed later.

Bankman-Fried has the right to contest his extradition to face them.

The charges came a day before he was due to testify before America’s House Financial Services Committee.

Read more:
Sam Bankman-Fried: What happened at FTX?
How FTX founder went from star-studded £21bn empire to being charged

Bankman-Fried has been the focus of investigations by both US and Bahamian authorities since the collapse of FTX, which ran out of money in the crypto equivalent of a bank run.

FILE - The FTX Arena logo is seen where the Miami Heat basketball team plays Nov. 12, 2022, in Miami. The former CEO of the failed cryptocurrency exchange FTX said Wednesday, Nov. 30, that he did not ...knowingly" misuse customers' funds, and claimed he believes his millions of angry customers will eventually be made whole. (AP Photo/Marta Lavandier, File)

It had been the world’s second-largest cryptocurrency exchange, but was left teetering on the brink of insolvency in early November when larger rival exchange Binance dramatically withdrew from a non-binding bailout offer.

Binance also indicated it would sell the $529m (£430m) of FTT, the native token of FTX, on its books.

It led other investors to rush to withdraw funds, but FTX could not meet all the requests, as it apparently used its customers’ deposits to cover bad bets at Alameda.

During a string of recent media appearances, Bankman-Fried has insisted he did not “knowingly” misuse customers’ funds and has denied defrauding investors.

However, he has admitted that “clearly I didn’t do a good job” at running FTX.

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‘The capital is under attack’: Russian drones launched over Kyiv after Moscow targeted

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'The capital is under attack': Russian drones launched over Kyiv after Moscow targeted

Russia has launched a “massive” drone and missile attack on the Ukrainian capital overnight, after Moscow itself was targeted.

Amid flailing peace talks, the Kremlin’s nightly attacks on Ukraine continued.

Ukraine war – follow the latest updates

A large-scale Russian attack through the night into Sunday injured at least 11 in Kyiv and killed three people in towns surrounding the capital.

There were attacks elsewhere as well, including drone strikes in Mykolaiv, where a residential building was hit.

An apartment building destroyed after a Russian attack in Mykolaiv.
Pic: State Emergency Service of Ukraine
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An apartment building destroyed after a Russian attack in Mykolaiv. Pic: State Emergency Service of Ukraine

‘Massive’ attack

In Kyiv, the city’s administration warned “the night will be difficult”, as people were urged to remain in shelters.

The city’s mayor Vitaliy Klitschko described it as a “massive” attack.

He said: “Explosions in the city. Air defence forces are working. The capital is under attack by enemy UAVs. Do not neglect your safety! Stay in shelters!”

It came after at least 15 people were injured in attacks the night prior.

Russia claimed it also faced a Ukrainian drone attack on Sunday, and that it intercepted and destroyed around 100 of them near Moscow and across Russia’s central and southern regions.

A municipality worker cleans up after a Russian drone strike on Kyiv.
Pic: Reuters
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A municipality worker cleans up after a Russian drone strike on Kyiv. Pic: Reuters

Russia ‘dragging out the war’

Meanwhile, Russia and Ukraine continued a prisoner exchange, marking a rare moment of cooperation in the war.

Amid the most recent attacks, Ukrainian President Volodymyr Zelenskyy repeated his calls for sanctions on Russia.

Russia “fills each day with horror and murder” and is “simply dragging out the war”, he said.

A resident looks at an apartment building that was damaged in a Russian drone strike.
Pic: Reuters
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A resident looks at an apartment building that was damaged in a Russian drone strike. Pic: Reuters

“All of this demands a response – a strong response from the United States, from Europe, and from everyone in the world who wants this war to end,” Mr Zelenskyy added.

Every day “gives new grounds for sanctions against Russia”, he said, and each day without pressure proves the “war will continue”.

Ukraine, meanwhile, is ready for “any form of diplomacy that delivers real results”.

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Nine of Gazan doctor’s 10 children killed in Israeli strike on Khan Younis

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Nine of Gazan doctor's 10 children killed in Israeli strike on Khan Younis

Nine of a doctor’s 10 children have been killed in an Israeli missile strike on their home in Gaza, which also left her surviving son badly injured and her husband in a critical condition.

Warning: This article contains details of child deaths

Alaa Al Najjar, a paediatrician at Al Tahrir Clinic in the Nasser Medical Complex, was at work during the attack on her home, south of the city of Khan Younis in southern Gaza, on Friday.

Graphic footage shared by the Hamas-run Palestinian Civil Defence shows the bodies of at least seven small children being pulled from the rubble.

Rescuers can be seen battling fires and searching through a collapsed building, shouting out when they locate a body, before bringing the children out one by one and wrapping their remains in body bags.

In the footage, Dr Al Najjar’s husband, Hamdi Al Najjar, who is also a doctor, is put on to a stretcher and then carried to an ambulance.

The oldest of their children was only 12 years old, according to Dr Muneer Alboursh, the director general of Gaza’s health ministry, which is run by Hamas.

Rescuers removing the children's bodies from the rubble. Pic: Palestinian Civil Defence
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Nine children were killed in the strike. Pic: Palestinian Civil Defence

“This is the reality our medical staff in Gaza endure. Words fall short in describing the pain,” he wrote in a social media post.

“In Gaza, it is not only healthcare workers who are targeted – Israel’s aggression goes further, wiping out entire families.”

Rescuers placing the children's bodies in a van. Pic: Palestinian Civil Defence
Image:
Pic: Palestinian Civil Defence

British doctors describe ‘horrific’ and ‘unimaginable’ attack

Two British doctors working at Nasser Hospital described the attack as “horrific” and “unimaginable” for Dr Al Najjar.

Speaking in a video diary on Friday night, Dr Graeme Groom said his last patient of the day was Dr Al Najjar’s 11-year-old son, who was badly injured and “seemed much younger as we lifted him on to the operating table”.

Hamdi Al Najjar, Dr Al Najjar's husband who is also a doctor, being taken into hospital. Pic: Palestinian Civil Defence
Image:
Hamdi Al Najjar, Dr Al Najjar’s husband who is also a doctor, was taken to hospital. Pic: Palestinian Civil Defence

The strike “may or may not have been aimed at his father”, Dr Groom said, adding that the man had been left “very badly injured”.

Dr Victoria Rose said the family “lived opposite a petrol station, so I don’t know whether the bomb set off some massive fire”.

Rescuers unload the children's bodies. Pic: Palestinian Civil Defence
Image:
Pic: Palestinian Civil Defence

‘No political or military connections’

Dr Groom added: “It is unimaginable for that poor woman, both of them are doctors here.

“The father was a physician at Nasser Hospital. He had no political and no military connections. He doesn’t seem to be prominent on social media, and yet his poor wife is the only uninjured one, who has the prospect of losing her husband.”

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Nineteen of Gaza’s hospitals remain operational, all of them are overwhelmed with the number of patients and a lack of supplies

He said it was “a particularly sad day”, while Dr Rose added: “That is life in Gaza. That is the way it goes in Gaza.”

Sky News has approached the Israeli Defence Forces for comment.

Read more:
Mum of emaciated baby in Gaza says ‘I don’t want to lose her’
Dad wrongly pronounced dead in Israeli bombing killed in airstrike

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Israel’s war against Hamas in Gaza began when the militant group stormed across the border into Israel on 7 October 2023, killing some 1,200 people, most of them civilians, and abducting 251 others.

Israel’s military response has flattened large areas of Gaza and killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry, which does not differentiate between civilians and combatants in its count.

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UN’s Antonio Guterres condemns ‘teaspoon’ of aid allowed into Gaza after dozens die in airstrikes

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UN's Antonio Guterres condemns 'teaspoon' of aid allowed into Gaza after dozens die in airstrikes

The head of the UN has said Israel has only authorised for Gaza what amounts to a “teaspoon” of aid after at least 60 people died in overnight airstrikes.

UN secretary general Antonio Guterres said on Friday the supplies approved so far “amounts to a teaspoon of aid when a flood of assistance is required,” adding “the needs are massive and the obstacles are staggering”.

He warned that more people will die unless there is “rapid, reliable, safe and sustained aid access”.

A woman walks amidst rubble at the site of an Israeli strike on a house in Jabalia, in the northern Gaza Strip.
Pic: Reuters
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A woman at the site of an Israeli strike in Jabalia, northern Gaza. Pic: Reuters

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Gaza: ‘Loads of children with huge burns’

Israel says around 300 aid trucks have been allowed through since it lifted an 11-week blockade on Monday, but according to Mr Guterres, only about a third have been transported to warehouses within Gaza due to insecurity.

The IDF said 107 vehicles carrying flour, food, medical equipment and drugs were allowed through on Thursday.

Many of Gaza’s two million residents are at high risk of famine, experts have warned.

Meanwhile, at least 60 people have been killed by Israeli airstrikes across Gaza overnight.

More on Gaza

Ten people died in the southern city of Khan Younis, and deaths were also reported in the central town of Deir al-Balah and the Jabaliya refugee camp in the north, according to the Nasser, Al-Aqsa and Al-Ahli hospitals where the bodies were brought.

Palestinians carry a body at the site of an Israeli strike on a house, in Jabalia, northern Gaza .
Pic: Reuters
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A body is carried out of rubble after an Israeli strike in Jabalia, northern Gaza. Pic: Reuters

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‘Almost everyone depends on aid’ in Gaza

The latest strikes came a day after two Israeli embassy workers were killed in Washington.

The suspect, named as 31-year-old Elias Rodriguez from Chicago, Illinois, told police he “did it for Gaza”.

Israeli Prime Minister Benjamin Netanyahu accused Sir Keir Starmer, Emmanuel Macron and Mark Carney of fuelling antisemitism following the shootings.

The leaders of the UK, France and Canada are “on the wrong side of humanity and (…) history”, he said, after they threatened “concrete action” against Israel this week if it continues its “egregious” military operations in Gaza.

Mr Netanyahu also accused Sir Keir, Mr Macron and Mr Carney of siding with “mass murderers, rapists, baby killers and kidnappers”.

Palestinians search for casualties at the site of an Israeli strike on a house in Jabalia, in the northern Gaza Strip May 23, 2025. REUTERS/Mahmoud Issa
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Palestinians search for casualties in Jabalia, northern Gaza. Pic: Reuters

But UK government minister Luke Pollard told Sky News on Friday morning he “doesn’t recognise” Mr Netanyahu’s accusation.

Earlier this week, Mr Netanyahu said he was recalling negotiators from the Qatari capital, Doha, after a week of ceasefire talks failed to bring results. A working team will remain.

The war in Gaza began when Hamas-led militants attacked southern Israel on 7 October 2023, killing some 1,200 people, mostly civilians, and kidnapping 251 others.

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The militants are still holding 58 captives, around a third of whom are believed to be alive, after most of the rest were returned in ceasefire agreements or other deals.

Israel’s offensive, which has destroyed large swaths of Gaza, has killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry.

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