Cointelegraph reporters are on the bottom in New York for the trial of former FTX CEO Sam “SBF” Bankman-Fried. Because the saga unfolds, test under for the newest updates.
Oct. 3: SBF trial begins
The trial of Sam Bankman-Fried started on Oct. 3 with jury choice. Bankman-Fried is charged with seven counts of conspiracy and fraud in reference to the collapse of FTX, the cryptocurrency trade he co-founded. He has pleaded not responsible to all expenses. The case is being heard by Choose Lewis Kaplan, who has presided over a protracted checklist of different high-profile circumstances, together with ones involving detainees at Guantanamo Bay, the Gambino crime household, Prince Andrew and Donald Trump.
Bankman-Fried was ordered to be jailed on Aug. 11 after Kaplan discovered that his sharing of former Alameda Analysis CEO Caroline Ellison’s private papers amounted to witness intimidation. Alameda Analysis was a buying and selling home additionally based by Bankman-Fried. Beforehand, he had been beneath home arrest in his dad and mom’ residence in Stanford, California on a $250-million bond.
December: SBF arrested
Bankman-Fried was arrested in america on his arrival from the Bahamas on Dec. 21, 2022. He had been arrested within the Bahamas on Dec. 12 after the U.S. authorities formally notified the nation of expenses the U.S. was submitting in opposition to him. He declared his intention to struggle extradition from the Caribbean nation however modified his thoughts after per week in Bahaman jail and consented to extradition.
In the meantime, FTX co-founder Gary Wang and Alameda Analysis CEO (and reportedly someday SBF girlfriend) Ellison agreed to plead responsible within the burgeoning case.
November: FTX collapses
Bankman-Fried’s troubles started when experiences emerged on Nov. 2 that Alameda Analysis had a big holding of FTX Token (FTT), FTX’s utility token. That revelation led to questions concerning the relationship between the 2 entities. On Nov. 6, Changpeng Zhao, CEO of rival trade Binance, introduced that his trade would liquidate its FTT holdings, which have been estimated to be value $2.1 billion. Zhao turned down a suggestion tweeted by Ellison to purchase Binance’s FTT.
A run started on FTX. Bankman-Fried gave reassurances on Twitter (now X) that the trade’s “property are nice” and accused “a competitor” of spreading rumors. By Nov. 8, the value of FTT had fallen from $22 to $15.40.
It’s solely been one week since SBF’s infamous “FTX is ok. Belongings are nice.” pic.twitter.com/zKoILqquHF
— Robert Smith (@BondHack) November 14, 2022
Additionally on Nov. 8, Bankman-Fried introduced on Twitter that he had come to an settlement with Zhao “on a strategic transaction.” He wrote, “Our groups are engaged on clearing out the withdrawal backlog as is. It will filter out liquidity crunches; all property shall be coated 1:1.”
On Nov. 9, Zhao introduced that Binance wouldn’t pursue the acquisition of FTX after due diligence and extra experiences of mishandled funds. The value of Bitcoin (BTC) plummeted to $15,600. The FTX and Alameda Analysis web sites went darkish for a number of hours. When the FTX web site got here again, it bore a warning in opposition to making deposits and was unable to course of withdrawals.
On Nov. 10, Bankman-Fried posted a 22-part Twitter thread that started with “I’m sorry.” It was the primary of a protracted string of public statements he made concerning the trade’s fall. The next day, all the workers of Alameda Analysis stop, and FTX, FTX.US and Alameda Analysis filed for chapter in america. Bankman-Fried resigned as FTX CEO and was changed by John J. Ray III. Ray was finest identified for his function within the Enron chapter.
SBF and FTX earlier than the autumn
At first of 2022, FTX had a $32-billion valuation and was regarded as in enviable monetary situation. Bankman-Fried was seen as a revered enterprise chief by a lot of the crypto neighborhood and the world at giant. He was photographed with political leaders and spoke at Congressional hearings.
Maxine Waters is chairing the investigation into FTX https://t.co/oFMctH4rRh pic.twitter.com/Ox6O5w4nOl
— Jordan Schachtel @ file.at present (@JordanSchachtel) November 17, 2022
He had gained a status as a philanthropist, pursuing a philosophy fashionable amongst lecturers often known as efficient altruism. A part of his implementation of that philosophy was political activism within the type of monetary help for candidates.
Because the crypto winter set in, Bankman-Fried spoke of FTX and Alameda Analysis’s “duty to significantly contemplate stepping in, even whether it is at a loss to ourselves, to stem contagion.” The businesses made a bid for Voyager Digital that was rebuffed.
FTX made a cope with Visa to introduce its personal debit card in 40 nations.
Bankman-Fried, Ellison and different alumni of Jane Road Capital based Alameda Analysis in 2017. Bankman-Fried went on to discovered FTX with Wang in 2019. Zhao was an early investor within the trade.
This can be a creating story, and additional data shall be added because it turns into out there.
