Connect with us

Published

on

Former cryptocurrency exchange boss Sam Bankman-Fried hugged his parents after being denied bail on charges relating to “one of the biggest financial frauds in American history”.

The 30-year-old founder of FTX, has been charged by the US Securities and Exchange Commission (SEC) with fraud and violating campaign finance laws. He is also being sued.

Following his arrest in the Bahamas, a judge denied him bail, saying he was a “great” flight risk, and sent him to a local correctional facility instead.

Bankman-Fried will remain in custody in the Bahamas until at least 8 February.

The latest developments cap a stunning fall from grace in recent weeks for the man known as SBF, who amassed a fortune valued over $20bn (£16.2bn) as he rode a cryptocurrency boom to build FTX into one of the world’s largest exchanges before it abruptly collapsed this year.

Bankman-Fried has previously apologised to customers and acknowledged oversight failings at FTX, but said he does not personally think he has any criminal liability.

Earlier on Tuesday, US Attorney Damian Williams in New York alleged Bankman-Fried had made illegal campaign contributions to Democrats and Republicans with “stolen customer money,” labelling it part of one of the “biggest financial frauds in American history”.

More on Ftx

Bankman-Fried faces a maximum sentence of 115 years in prison if convicted on all eight counts, prosecutors said.

He was arrested at his home in a gated community in the Bahamas capital, Nassau.

In the indictment unsealed on Tuesday morning, US prosecutors claimed Bankman-Fried had engaged in a scheme to defraud FTX’s customers by misappropriating their deposits to pay for expenses and debts and to make investments on behalf of his crypto hedge fund, Alameda Research LLC.

He also defrauded lenders to Alameda by providing false and misleading information about the hedge fund’s condition, and sought to disguise the money he had earned from committing wire fraud, it is alleged.

Sam Bankman-Fried is escorted out of court in Nassau, Bahamas

Both the SEC and the Commodity Futures Trading Commission (CFTC) alleged Mr Bankman-Fried committed fraud in lawsuits filed on Tuesday.

The CFTC sued him, Alameda and FTX, alleging fraud involving digital commodity assets.

Since at least May 2019, FTX raised more than $1.8bn from equity investors in a years-long “brazen, multi-year scheme” in which Bankman-Fried concealed FTX was diverting customer funds to Alameda Research, the SEC alleged.

Bankman-Fried, who founded FTX in 2019, was an unconventional figure who sported wild hair, t-shirts and shorts on panel appearances with statesmen like former American President Bill Clinton.

He became one of the largest Democratic donors, contributing $5.2m (£4.2m) to President Joe Biden’s 2020 campaign.

FTX founder Sam Bankman-Fried poses for a picture, in an unspecified location, in this undated handout picture, obtained by Reuters on July 5, 2022. FTX/Handout via REUTERS/File Photo

Forbes pegged his net worth a year ago at $26.5bn (£21.4bn).

FTX filed for bankruptcy on 11 November, leaving an estimated one million customers and other investors facing losses in the billions of dollars. SBF resigned as chief executive the same day.

The collapse reverberated across the crypto world and sent bitcoin and other digital assets plummeting.

John Ray, Bankman-Fried’s successor as CEO, was called to testify before the House Financial Services Committee in the US Congress on Tuesday.

A crypto exchange is a platform on which investors can trade digital tokens such as bitcoin.

Continue Reading

US

Epstein survivors take centre stage as files controversy continues to leave Trump vulnerable

Published

on

By

Epstein survivors take centre stage as files controversy continues to leave Trump vulnerable

For so long, the Epstein story has cast them in a cameo role.

Everyday coverage of the scandal churns through the politics and process of it all, reducing their suffering to a passing reference.

Not anymore.

Not on a morning when they gathered on Capitol Hill, survivors of Epstein‘s abuse, strengthened by shared experience and a resolve to address it.

Please use Chrome browser for a more accessible video player

Epstein survivors call for release of all files

In a news conference that lasted over an hour, they brought an authenticity that only they could.

There was vivid recollection of the abuse they endured and a certainty in the justice they seek.

They had the safety of each other – adults now, with the horrors of youth at a distance, though never far away.

It was an emotional gathering on Capitol Hill, attended by survivors, politicians and several hundred members of the public who turned up in support.

Banners read “Release the files”, “Listen to the victims” and “Even your MAGA base demands Epstein files”.

Haley Robson was one of several Epstein survivors who spoke. Pic: AP
Image:
Haley Robson was one of several Epstein survivors who spoke. Pic: AP

A startling spectacle

That last statement isn’t lost on Donald Trump. As if for emphasis, one of the speakers was the ultra-loyal House representative Marjorie Taylor Greene – they don’t make them more MAGA.

In a spectacle, startling to politics-watchers in this town, she stood side by side with Democrat congressmen to demand the Epstein files be released.

It reflects a discontent spread through Donald Trump’s support base.

He is the man who once counted Jeffrey Epstein as a friend and who has said he’d release the files, only to reverse course.

Read more:
Partial release of Epstein files feeds cover-up claims
Explainer: Trump, Epstein and the MAGA controversy

Please use Chrome browser for a more accessible video player

‘It’s a Democrat hoax’ – Trump on Epstein files

Trump’s vulnerability

The Epstein files is the slow-burner that won’t go out, a story that exposes Trump’s vulnerability.

Just how vulnerable can be measured on Congress, where politicians need only a couple of Republicans to back legislation demanding full publication.

It bears the shape of a loyalty test to the president and the dynamics of that have changed with the survivors stepping forward.

One by one, they presented a thunderous reminder of the people and the moral imperative at the heart of the Jeffrey Epstein saga.

It’s political, sure, but it’s about much more – that, we saw on Capitol Hill.

Continue Reading

US

‘Ketamine Queen’ Jasveen Sangha pleads guilty to supplying fatal dose that killed Friends star Matthew Perry

Published

on

By

'Ketamine Queen' Jasveen Sangha pleads guilty to supplying fatal dose that killed Friends star Matthew Perry

A woman known as the “Ketamine Queen” has officially pleaded guilty to selling Friends star Matthew Perry the drug that killed him.

Jasveen Sangha initially denied the charges but agreed to change her plea in a signed statement in August, just a few weeks before she had been due to stand trial.

The 42-year-old , a dual citizen of the US and the UK, has now appeared in a federal court in Los Angeles to plead guilty to five charges, including supplying the ketamine that led to Perry‘s death.

She faces up to 65 years in prison after admitting one count of maintaining a drug-involved premises, three counts of distribution of ketamine, and one count of distribution of ketamine resulting in death.

Prosecutors agreed to drop three other counts related to the distribution of ketamine, and one count of distribution of methamphetamine that was unrelated to the Perry case.

In a brief statement when the plea deal was announced, her lawyer Mark Geragos said she was “taking responsibility for her actions”.

The judge is not bound to follow any terms of the plea agreement, but prosecutors have said they will ask for less than the maximum possible sentence.

Perry died aged 54 in October 2023. He had struggled with addiction for years, but released a memoir a year before his death during a period of being clean.

He had been using ketamine through his regular doctor as a legal, but off-label, treatment for depression, but in the weeks before his death had also started to seek more of the drug illegally.

Perry bought large amounts of ketamine from Sangha, including 25 vials for $6,000 (£4,458) in cash four days before his death, prosecutors said.

Read more:
The Hollywood drugs network exposed by Perry’s death
Obituary: The one who made everyone laugh

Please use Chrome browser for a more accessible video player

What Perry’s death says about Hollywood

Sangha, described by prosecutors as the “Ketamine Queen of North Hollywood”, is now the fifth and final person to plead guilty to charges connected to the supply of drugs to the Friends star.

The actor’s live-in assistant Kenneth Iwamasa, an acquaintance Erik Fleming, and a physician, Mark Chavez, all agreed to plead guilty when the charges were announced in August 2024.

Another doctor, Salvador Plasencia, initially pleaded not guilty and had been due to face trial alongside Sangha, but changed his plea in July.

Sangha and Plasencia had been the primary targets of the investigation.

The three other defendants: Chavez, Iwamasa and Fleming pleaded guilty in exchange for their co-operation, which included statements implicating Sangha and Plasencia.

Perry had bought ketamine from Sangha after he was led to her by Fleming, prosecutors said.

On the day of Perry’s death, Sangha told Fleming they should delete all the messages they had sent each other, according to Sangha’s indictment.

Sangha is due to be sentenced on 10 December.

The other four defendants are also still awaiting sentencing.

Perry was one of the biggest stars of his generation as Chandler Bing in Friends – which ran on NBC between 1994 and 2004.

He starred alongside Jennifer Aniston, Courteney Cox, Lisa Kudrow, Matt LeBlanc and David Schwimmer for all 10 seasons of the show.

The Friends stars were among around 20 mourners who attended his funeral in November 2023, according to TMZ.

Continue Reading

US

Trump suffers setback in bid to act as national police chief after chaos on streets of LA

Published

on

By

Trump suffers setback in bid to act as national police chief after chaos on streets of LA

The deployment of National Guard soldiers on to the streets of LA by Donald Trump was always deeply controversial – and now it has been deemed illegal, too, by a federal judge.

In late spring in Los Angeles, I observed as peaceful protests against immigration raids turned confrontational.

I watched as Waymos – self-driving cars – were set alight and people waving flags shut down one of the city’s busiest freeways. I saw government buildings spray-painted with anti-government sentiment and expletives. Some people even threw bottles at police officers in riot gear.

In exchange, I saw law enforcement deploy “flash bang” crowd control devices and fire rubber bullets into crowds, indiscriminately, on occasion.

Mounted Los Angeles police officers disperse protesters earlier this summer. Pic: San Francisco Chronicle/AP
Image:
Mounted Los Angeles police officers disperse protesters earlier this summer. Pic: San Francisco Chronicle/AP

A person reacts to non-lethal munitions shot in Los Angeles.
Pic: Reuters
Image:
A person reacts to non-lethal munitions shot in Los Angeles.
Pic: Reuters

It was chaotic at times, violent, even, in a corner of the downtown area of the city. But I didn’t witness anything that suggested police were on the brink of being overcome by rioters. I didn’t see anything that I believe justified the deployment of 4,000 National Guard troops and 700 marines to the heart of America’s second-biggest city.

But Trump sent them in anyway, against the wishes of the local government. LA mayor Karen Bass condemned the deployment as an act of political theatre and said it risked stoking tensions.

The language Trump used was, arguably, inflammatory, too. He described LA as an “invaded” and “occupied city”. He spoke of “a full-blown assault on peace”, carried out by “rioters bearing foreign flags with the aim of continuing a foreign invasion of our country”.

Please use Chrome browser for a more accessible video player

Trump: ‘We will liberate Los Angeles’

It didn’t reflect reality. The size of the protests were modest, several thousand people marching through a handful of streets in downtown LA, a city which spans 500 square miles and has a population of almost four million.

The majority of the soldiers simply stood guard outside government buildings, often looking bored. Some of them are still here, with nothing to do. Now a judge has ruled that the operation was illegal.

US District Judge Charles Breyer said the Trump administration “used armed soldiers (whose identity was often obscured by protective armour) and military vehicles to set up protective perimeters and traffic blockades, engage in crowd control, and otherwise demonstrate a military presence in and around Los Angeles”.

Read more from Sky News:
French government on brink of collapse
Xi hails ‘great regeneration of China’ at parade

Please use Chrome browser for a more accessible video player

Marines head to Los Angeles

In a scathing judgement, he effectively accused the White House of turning National Guard soldiers and marines into a “national police force.”

That breaches a law from 1878, barring the use of soldiers for civilian law enforcement activities.

It is a blow to what some view as the president’s ambition to federalise Democrat-run cities and deploy the National Guard in other states around the country. He had threatened to send troops to Chicago as part of an initiative he says is cracking down on crime, widening the use of National Guard troops, as seen on the streets of Washington DC.

Please use Chrome browser for a more accessible video player

The fightback against immigration raids in LA

But since this judge ruled that the deployment of National Guard and marines to LA in June was unlawful in the way it unfolded, Trump may have to be inventive with his rationale for sending soldiers into other US cities in the future.

This legal judgement, though, is being appealed and may well be overturned. Either way, it is unlikely to stem the president’s ambition to act as national police chief.

Continue Reading

Trending