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Sam Bankman-Fried sentenced to 25 years in prison for his role in collapse of FTX crypto exchange

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Former cryptocurrency billionaire Sam Bankman-Fried was sentenced Thursday to 25 years behind bars for his role in perpetrating one of the largest financial crimes in U.S. history, AP News reported.

Bankman-Fried, 32, was convicted in November of seven counts of fraud, conspiracy and money laundering, along with other charges of conspiracy to commit commodities and securities fraud. 

Bankman-Fried had faced up to 110 years under federal sentencing guidelines, but prosecutors had called for Judge Lewis Kaplan to sentence Bankman-Fried to between 40 and 50 years in prison for what they described as a “historic fraud.” Bankman-Fried’s attorneys had argued for a sentence of no more than six and a half years, saying he was unlikely to reoffend. 

At his sentencing hearing Thursday, attorneys for Bankman-Fried argued that their client never intended to defraud customers, and that Judge Kaplan should therefore show leniency. “Sam was not a ruthless financial serial killer who set out every morning to hurt people,” defense lawyer Marc Mukasey said, Reuters reported. Mukasey described his client as an “awkward math nerd” who tried to return customers’ money to them after FTX collapsed, according to the report. 

FILE PHOTO: FILE PHOTO: Former FTX Chief Executive Bankman-Fried at the Manhattan federal court in New York City
Former FTX CEO Sam Bankman-Fried walks outside the Manhattan federal court in New York City, March 30, 2023.

Amanda Perobelli / REUTERS


Although Bankman-Fried is expected to appeal his conviction, former federal prosecutor Andrey Spektor said there’s little chance that the verdict would be reversed. “There is nothing anyone can do about that,” Spektor said.

At the hearing, Bankman-Fried offered an apology to his former FTX colleagues, Reuters reported. “They put a lot of themselves into it, and I threw that all away. It haunts me everyday,” Bankman-Fried told the judge, adding, “I’m sorry about that. I’m sorry about what happened at every stage. Things I should have done and said, things I shouldn’t have.”

Bankman-Fried’s conviction last fall followed the startling 2022 collapse of FTX, the cryptocurrency trading platform he had co-founded and led as CEO, amid an $8 billion shortfall in funds. At trial, he was accused of using depositor money to prop up his struggling hedge fund, as well as of using the funds buy luxury properties in the Caribbean and to make donations to a range of causes.

FTX was once the second-largest crypto exchange in the world, allowing users to buy and sell dozens of virtual currencies, while Bankman-Fried’s wealth was estimated at more than $30 billion. Flush with billions of dollars of investors’ cash, Bankman-Fried took out a Super Bowl advertisement to promote FTX and bought the naming rights to an arena used by the NBA’s Miami Heat.

But the collapse of cryptocurrency prices in 2022 crippled FTX and ultimately led to its crash. FTX’s hedge fund affiliate, Alameda Research, had made billions of dollars in crypto investments that plunged in value. Prosecutors said Bankman-Fried tried to shore up Alameda’s balance sheet with FTX customer funds.

Three former FTX associates testified against Bankman-Fried after pleading guilty to related crimes. They included Caroline Ellison, Bankman-Fried’s former romantic partner, who alleged that he had pressured her to commit fraud. 

—The Associated Press contributed to this report.



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Former Trump national security adviser says next couple months are “really critical” for Ukraine

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Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.

McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.

With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022. 

Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.

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H.R. McMaster on “Face the Nation with Margaret Brennan,” Nov. 24, 2024.

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McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”

“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”

McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.

“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said. 

On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”

McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.

Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.

More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.” 

Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”



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Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments

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Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments – CBS News


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Democratic Sen. Chris Van Hollen of Maryland, who last week backed Sen. Bernie Sanders’ bill to block U.S. sending arms to Israel, told “Face the Nation with Margaret Brennan” that President Biden ” is not fully complying with American law” on sending arms to Israel.

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Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use”

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Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use” – CBS News


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Rep.-elect Sarah McBride, the first openly transgender person to be elected to Congress, tells “Face the Nation with Margaret Brennan” that as Republicans have sought to put forward a bathroom ban in the Capitol, she “didn’t run for the United States House of Representatives to talk about what bathroom I use.”

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