FTX's Sam Bankman-Fried found guilty. A timeline of the events leading up to here | Mint
Active Stocks
Thu Feb 22 2024 15:29:56
  1. Bharti Airtel share price
  2. 1,134.50 -0.46%
  1. Tata Steel share price
  2. 145.85 1.39%
  1. State Bank Of India share price
  2. 765.95 -0.73%
  1. HDFC Bank share price
  2. 1,419.80 -1.28%
  1. Power Grid Corporation Of India share price
  2. 282.55 0.86%
Business News/ Companies / People/  FTX's Sam Bankman-Fried found guilty. A timeline of the events leading up to here
BackBack

FTX's Sam Bankman-Fried found guilty. A timeline of the events leading up to here

US Attorney Damian Williams said the FTX fraud perpetrated by Bankman-Fried is one of the biggest financial frauds in American history.

FTX founder Sam Bankman-Fried testifies in his fraud trial over the collapse of the bankrupt cryptocurrency exchange, at a federal court in New York City. (REUTERS)Premium
FTX founder Sam Bankman-Fried testifies in his fraud trial over the collapse of the bankrupt cryptocurrency exchange, at a federal court in New York City. (REUTERS)

Sam Bankman-Fried, co-founder and former CEO of cryptocurrency exchange FTX, is convicted on seven charges of fraud and money laundering by a New York jury, as per an AP report. The jury rejected the troubled entrepreneur's claims of innocence and found him guilty on all charges in a scheme that wiped out at least $10 billion in investor funds, it added.

FTX, which was once the second-largest crypto exchange in the world, folded into bankruptcy in 2022. Bankman-Fried's other firm Alameda Research was also under scrutiny and has shut shop.

Speaking to reporters after the hearing, US Attorney Damian Williams said the FTX fraud perpetrated by Bankman-Fried is "one of the biggest financial frauds in American history".

"(It was) a multibillion-dollar scheme designed to make him the king of crypto. But here’s the thing: The cryptocurrency industry might be new. The players like Sam Bankman-Fried might be new. This kind of fraud, this kind of corruption is as old as time and we have no patience for it," Williams added.

Also Read: Rise and fall of crypto exchange FTX

A timeline of the events leading up to Bankman-Fried's conviction and the collapse of FTX

November 2022: The dominoes begin falling

Crypto exchange Binance sold all of its FTT tokens on November 6, and promptly the next day FTX declared a liquidity crisis. The exchange entreated fellow venture capitalists (VCs), including Binance for a bailout. On November 9 after previously agreeing to take on FTX's non-US business, Binance walked back on the deal citing discrepancies found during due diligence.

November 2022: Regulatory action begins

Assets of FTX's subsidiary in the Bahamas were frozen on November 10, following which Bankman-Fried admitted to a cash crunch in the non-US business. Alameda Research is closed and a new CEO is appointed for FTX. On November 11, the crypto exchange filed for Chapter 11 bankruptcy. On November 12 FTX reports that a hacker stole $477 million of its assets and shifted its digital assets to cold storage. The Bahamas seized FTX assets in the region on November 18.

Also Read | Answered: Six questions about the fall of FTX

December 2022: Arrest and extradition

Authorities in the Bahamas arrest Bankman-Fired and later extradite him to the United States for trial. He is released from prison on December 22, for a historic $250 million bond - the largest set by a Federal US Judge.

January 2023: Court proceedings begin

During the hearing, Bankman-Fried pleaded not guilty and the judge scheduled the next hearing for October 2023. The beleaguered founder in a blog blames the crypto market downturn for FTX's ill fortune and denies fraud.

February 2023: Circle collapsing

All three former inner circle colleagues of Bankman-Fried plead guilty to fraud charges and agree to cooperate with investigations leaving the co-founder cornered.

Also Read | Crypto Crisis: A timeline of key events

August 2023: Bail revoked

The US district judge revoked Bankman-Fried's bail on August 11 due to probable cause that he tampered with witnesses at least twice. He was remanded to Brooklyn's Metropolitan Detention Center pending trial.

October 2023: Trials and defense

Bankman-Fried's trial began at a Federal Court in Manhattan on October 3. During a hearing on October 28, the co-founder admitted that many people were hurt by FTX's collapse, but continued denying fraud from his end.

November 2023: Guilty

A New York jury found Bankman-Fried guilty on all seven charges of fraud and money laundering and rejected his claims of innocence.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 03 Nov 2023, 09:55 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App