Crypto Wunderkind to 25-Year Sentence: 10 things to know about Sam Bankman-Fried the 'Crypto King'

Just a year ago, Sam Bankman-Fried, or SBF as he was known, was hailed as a wunderkind. His FTX exchange boomed, processing transactions at a rapid pace and charging lower fees than competitors. His personal fortune soared, making him a billionaire many times over. Today, however, SBF finds himself a convicted felon, sentenced to 25 years in prison for orchestrating an $8 billion fraud. This dramatic fall from grace has left many wondering how it all went so wrong. 

• In 2019, SBF co-founded FTX, a cryptocurrency exchange that promised lower fees and faster transactions. It quickly rose to become the second-largest crypto exchange globally. His net worth peaked at an estimated $26.5 billion, as per Forbes.
• SBF cultivated a persona as a brilliant, eccentric leader. He became a media darling, appearing on financial news shows like Bloomberg and hobnobbing with celebrities like Tom Brady.
• Despite the facade of success, cracks began to show. As per a report by WSJ, questions arose about FTX's complex financial structure and reliance on FTT, a digital token created by FTX in May 2019. 
• In November 2022, a liquidity crisis at FTX's sister company, Alameda Research, triggered a domino effect. Investors panicked, and FTX filed for bankruptcy, according to a Reuters report.
• SBF was arrested in the Bahamas and accused of eight federal charges, including wire fraud, securities fraud, and money laundering. His $26 billion net worth vanished overnight.
• SBF pleaded not guilty, maintaining his innocence. His lawyers argued he was unaware of the full extent of the alleged fraud.
• The highly anticipated trial revealed a culture of recklessness at FTX, with lax controls and questionable accounting practices.
• After three weeks, the jury found SBF guilty on all eight counts. The judge called it “one of the largest financial frauds in American history,” as quoted by The Washington Post.
• In a packed courtroom, SBF was sentenced to 25 years in prison, a stark reminder of the consequences of white-collar crime.
• The FTX collapse sent shockwaves through the crypto industry, raising questions about regulation and investor protection. SBF's story serves as a cautionary tale for anyone tempted by the allure of easy money and unchecked ambition.