{"id":168175,"date":"2023-10-04T19:29:59","date_gmt":"2023-10-04T13:59:59","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=168175"},"modified":"2023-10-04T19:29:59","modified_gmt":"2023-10-04T13:59:59","slug":"what-sam-bankman-fried-did-explained-like-youre-five-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/what-sam-bankman-fried-did-explained-like-youre-five-crypto-news\/","title":{"rendered":"What Sam Bankman-Fried Did, Explained Like You&#8217;re Five &#8211; Crypto News"},"content":{"rendered":"<div style=\"position:relative;overflow:visible;font-size:1.2em;line-height:1.58\">\n<div class=\"pt-8 pb-10 border-t border-b border-decryptGridline \">\n<h4 class=\"sc-2ed2039d-4 gGjXIA gg-dark:text-white\">In brief<\/h4>\n<ul>\n<li class=\"font-meta-serif-pro font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">\n<p class=\"text-inherit\">Bankman-Fried creates FTX, which grows to be one of the largest cryptocurrency exchanges in the world and becomes a billionaire and poster icon for everyday cryptocurrency use.<\/p>\n<\/li>\n<li class=\"font-meta-serif-pro font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">\n<p class=\"text-inherit\">FTX collapses amidst controversy, and $8.9 billion in customer assets are missing in what will be one of the biggest frauds in history.<\/p>\n<\/li>\n<li class=\"font-meta-serif-pro font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\">\n<p class=\"text-inherit\">Bankman-Fried and former colleagues face multiple charges, which could culminate in 110 years of allotted jail time for the now 31-year-old.<\/p>\n<\/li>\n<\/ul>\n<\/div>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">A once crypto-superstar, Sam Bankman-Fried, goes on trial for 13 charges of fraud and conspiracy centered around the mismanagement and\/or misappropriation of FTX exchange customer\u2019s crypto holdings.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Sam Bankman-Fried co-founded Alameda Research in 2017 and the FTX cryptocurrency exchange in 2019. He quickly became an icon of the cryptocurrency industry, garnering mainstream attention for crypto, even helping to turn Super Bowl 2022 into \u201c<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/videos\/live-events\/a8xS6hyZ\/here-comes-the-crypto-super-bowl\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">Crypto Bowl<\/span><\/a><span style=\"font-weight:400\">\u201d with other advertisers.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Today, Bankman-Fried stands accused of multiple accounts of fraud and conspiracy to commit fraud and is instead an illustration of the controversies and concerns surrounding a still unregulated cryptocurrency industry.<\/span><\/p>\n<h2 class=\"sc-2ed2039d-2 hmmXcn gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left;padding-bottom:16px;margin-bottom:16px;border-bottom:1px solid #dfe2e4\"><span style=\"font-weight:400\">What happened to FTX? And what are the charges against Bankman-Fried?<\/span><\/h2>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">In November 2022, rumors surfaced that much of the billions of dollars in holdings of Alameda Research were in the crypto FTT, the token launched by the FTX exchange. FTX and Alameda owned most of the FTT in circulation, implying that Alameda was critically vulnerable to a sell-off of FTT.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">A chain of events followed that collapsed FTX and Alameda, wiped out a fifth of the value of the cryptocurrency market, and ultimately led to the arrest of Bankman-Fried. Immediately after the rumors surfaced, Binance founder Changpeng Zhao announced he would sell his FTT holdings, worth around $580 million, plummeting the price of FTT by 75% and leading to a run on the FTX exchange by panicked investors. FTX couldn\u2019t fund the sudden massive volume of withdrawals. Up to $10 billion was reported missing shortly after, and the rest, when all is said and done, will go down in crypto history.<\/span><\/p>\n<h2 class=\"sc-2ed2039d-2 hmmXcn gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left;padding-bottom:16px;margin-bottom:16px;border-bottom:1px solid #dfe2e4\"><span style=\"font-weight:400\">A timeline of Sam Bankman-Fried and FTX<\/span><\/h2>\n<p class=\"sc-a2026f0f-3 kSJGyr gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left\"><span style=\"font-weight:400\">2017<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November <\/b><span style=\"font-weight:400\">&#8211; 25-year-old US-born Bankman-Fried launches Alameda Research with Tara Mac Auley after leaving his job as a quantitative trader at Jane Street Capital and a brief stint as the director of development for the Centre of Effective Altruism.<\/span><\/p>\n<p class=\"sc-a2026f0f-3 kSJGyr gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left\"><span style=\"font-weight:400\">2019<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>May <\/b><span style=\"font-weight:400\">&#8211; Bankman-Fried and Gary Wang, a former Google employee, launch cryptocurrency exchange FTX, incorporated in Antigua and Barbuda with its base of operations in the Bahamas.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>July<\/b><span style=\"font-weight:400\"> &#8211; The FTT token was initially launched privately and then publicly as an <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/resources\/what-you-need-to-know-about-exchange-tokens-after-ftx-meltdown\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">exchange token<\/span><\/a><span style=\"font-weight:400\">. Its benefits included rewarding users with lower fees on the exchange.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>August<\/b><span style=\"font-weight:400\"> &#8211; FTX closes an <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/118516\/sam-bankman-fried-ftx-latest-timeline\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$8 billion<\/span><\/a><span style=\"font-weight:400\"> seed round with funding from the likes of Pantera Capital, Sequoia Capital, Digital Currency Group, Binance, Binance Labs, and Consensus Labs.<\/span><\/p>\n<figure class=\"mt-8 mb-4 post-quote scene:pl-4 scene:md:pl-10 scene:border-l border-black\">\n<blockquote>\n<p class=\"scene:text-xl font-canela scene:font-itc-avant-garde-gothic-pro scene:font-medium font-black text-3xl md:text-4xl scene:md:text-2xl gg-dark:text-white\">It\u2019s estimated that Bankman-Fried loaned himself at least $1 billion to find his luxury lifestyle and approved loans to his parents and co-workers.\u00a0<\/p>\n<\/blockquote>\n<\/figure>\n<p class=\"sc-a2026f0f-3 kSJGyr gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left\"><span style=\"font-weight:400\">2020<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>October<\/b><span style=\"font-weight:400\"> &#8211; FTX launches \u201cfractionalized stock trading\u201d for Tesla, Apple and Amazon derivatives.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>December <\/b><span style=\"font-weight:400\">&#8211; FTX tokenizes stocks for five Cannabis companies.\u00a0<\/span><\/p>\n<p class=\"sc-a2026f0f-3 kSJGyr gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left\"><span style=\"font-weight:400\">2021<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>July<\/b><span style=\"font-weight:400\"> &#8211; FTX has over one million users and becomes the third-largest cryptocurrency exchange in the world by volume traded. The exchange raises a further <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/76447\/crypto-exchange-ftx-raises-900-million-valued-at-18-billion\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$900 million<\/span><\/a><span style=\"font-weight:400\"> from 60 high-profile investors and <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/76584\/ftx-ceo-sam-bankman-fried-why-bought-out-binance-investment-shares-exit\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">buys out <\/span><\/a><span style=\"font-weight:400\">early investor and shareholder Binance and Zhao for what is suggested to have been in the region of $2 billion. Zhao is left owning $580 million in FTT.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>October <\/b><span style=\"font-weight:400\">&#8211; FTX raises <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.dailymail.co.uk\/news\/article-11445317\/FTX-s-Sam-Bankman-Fried-cashed-300-million-funding-spree-WSJ.html\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$420 million<\/span><\/a><span style=\"font-weight:400\"> in venture funding, leading to a valuation of <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/84001\/crypto-exchange-ftx-hits-25-billion-valuation-latest-funding-round\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$25 billion<\/span><\/a><span style=\"font-weight:400\">. Bankman-Fried is listed as a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.forbes.com\/profile\/sam-bankman-fried\/?sh=4ad926504449\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">Forbes<\/span><\/a><span style=\"font-weight:400\"> billionaire for the first time, with an estimated net worth of $22.5 billion.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">By the <\/span><b>end of 2021<\/b><span style=\"font-weight:400\">, Bankman-Fried would be worth an estimated $26 billion, with most of this wealth from his half-ownership in FTX and the FTT tokens he owned. FTX completed the year having stuck marketing deals with the likes of Formula 1 teams, esports teams Furia and Team SoloMid, and partnerships with prominent sports stars like <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/74771\/tom-brady-and-gisele-bundchen-invest-in-ftx\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">Tom Brady<\/span><\/a><span style=\"font-weight:400\">.\u00a0<\/span><\/p>\n<p class=\"sc-a2026f0f-3 kSJGyr gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left\"><span style=\"font-weight:400\">2022<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>January<\/b><span style=\"font-weight:400\"> &#8211; FTX launches <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/90409\/ftx-launches-2-billion-web3-venture-fund-led-lightspeed-amy-wu\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">FTX Ventures<\/span><\/a><span style=\"font-weight:400\">, a $2 billion venture fund that raises <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/FTX\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$400 million<\/span><\/a><span style=\"font-weight:400\"> in funding, and FTX reaches a valuation of $32 billion.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>February<\/b><span style=\"font-weight:400\"> &#8211; The NFL Super Bowl features numerous cryptocurrency adverts, including one for FTX where actor Larry David\u2019s skepticism for FTX is made analogous to early humans questioning the invention of the wheel.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>May <\/b><span style=\"font-weight:400\">&#8211; Stanford University, the employer of Bankman-Fried\u2019s parents, has received <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/197959\/stanford-university-to-return-over-5-5m-in-gifts-from-ftx\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$5.5 million<\/span><\/a><span style=\"font-weight:400\"> in donations from FTX by this point in time.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>July<\/b><span style=\"font-weight:400\"> &#8211; Bankman-Fried \u201csaves\u201d struggling crypto ventures, his lending BlockFi $250 million and giving $200 million in credit to Voyager Digital, just two examples.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>September <\/b><span style=\"font-weight:400\">&#8211; Bloomberg questions a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-09-27\/sam-bankman-fried-s-alameda-research-draws-increasing-attention?leadSource=uverify%20wall#xj4y7vzkg\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">conflict of interest<\/span><\/a><span style=\"font-weight:400\"> that Alameda, making millions of dollars per day in Bitcoin arbitrage trading, is a \u201cmarket maker\u201d for the FTX exchange. Bankman-Fried argues Alameda provides liquidity.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November 2<\/b><span style=\"font-weight:400\"> &#8211; CoinDesk publishes <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coindesk.com\/business\/2022\/11\/02\/divisions-in-sam-bankman-frieds-crypto-empire-blur-on-his-trading-titan-alamedas-balance-sheet\/?outputType=amp\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">leaked Alameda Research<\/span><\/a><span style=\"font-weight:400\"> documents revealing the company\u2019s FTT holdings. Alameda is said to own $3.66 billion of $5.1 billion total FTT in circulation plus further billions in FTT collateral.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November 6<\/b><span style=\"font-weight:400\"> &#8211; Binance CEO Zhao says he\u2019ll sell his <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.theguardian.com\/technology\/2022\/nov\/11\/binance-ftx-collapse-cryptocurrency-exchange-changpeng-zhao\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$580 million<\/span><\/a><span style=\"font-weight:400\"> in FTT.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November 8 <\/b><span style=\"font-weight:400\">&#8211; FTX customers request a combined $6 billion in withdrawals, and withdrawals are halted. Zhao offers to buy the non-U.S FTX exchange but backs out a day later.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November 10<\/b><span style=\"font-weight:400\"> &#8211; The Securities and Exchange Commission and the US Justice Department investigate<\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.coindesk.com\/policy\/2022\/11\/10\/us-justice-department-regulators-contacted-binance-on-ftx-talks-source\/\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\"> FTX<\/span><\/a><span style=\"font-weight:400\">.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November 11<\/b><span style=\"font-weight:400\"> &#8211; Bankman-Fried resigns as CEO of FTX, and the exchange files for bankruptcy in the US. Reports indicate upwards of $10 billion in FTX customer assets are missing.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>November 16<\/b><span style=\"font-weight:400\"> &#8211; Larry David and other celebrities who have promoted FTX face <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/197509\/first-celebrities-settle-lawsuit-over-ftx-deals\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">lawsuits<\/span><\/a><span style=\"font-weight:400\"> for deceptive practices.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>December 12<\/b><span style=\"font-weight:400\"> &#8211; Bankman-Fried is arrested in the Bahamas and later indicted by a U.S. federal grand jury for fraud and conspiracy.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>December 21<\/b><span style=\"font-weight:400\"> &#8211; Bankman-Friend agrees to be extradited to the US. FTX co-founder Gary Wang and Bankman-Fried\u2019s on-and-off girlfriend, Alameda CEO <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/117770\/caroline-ellison-gary-wang-plead-guilty-cooperating-in-ftx-investigation\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">Caroline Ellison<\/span><\/a><span style=\"font-weight:400\">, plead guilty to charges.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>December 22<\/b><span style=\"font-weight:400\"> &#8211; After an initial appearance in federal court, Bankman-Fried is released on a $250 million bond to his parent&#8217;s home in California.\u00a0<\/span><\/p>\n<p class=\"sc-a2026f0f-3 kSJGyr gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left\"><span style=\"font-weight:400\">2023<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>January<\/b><span style=\"font-weight:400\"> &#8211; The trial is scheduled for October 2023, as Bankman-Fried pleads <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/118293\/sam-bankman-fried-pleads-not-guilty-ftx-fraud\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">not guilty<\/span><\/a><span style=\"font-weight:400\">.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>February<\/b><span style=\"font-weight:400\"> &#8211; FTX director of engineering <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/122399\/ftx-nishad-singh-guilty-sec-cftc\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">Nishad Singh<\/span><\/a><span style=\"font-weight:400\"> also pleads guilty and, like Wang and Ellison, agrees to cooperate with prosecutors, this may aid the <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/199645\/sam-bankman-fried-trial-defense-strategy-plan-legal-experts\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">case against<\/span><\/a><span style=\"font-weight:400\"> Bankman-Fried.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>August<\/b><span style=\"font-weight:400\"> &#8211; Bankman-Fried is remanded to custody when his bail is revoked on suspicion of <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/149499\/doj-accuses-sbf-of-leaking-caroline-ellisons-diary-to-discredit-a-witness-in-ftx-trial\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">tampering with witnesses<\/span><\/a><span style=\"font-weight:400\">.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><b>October 3<\/b><span style=\"font-weight:400\"> &#8211; Disgraced, once crypto superstar, Bankman-Fried will face trial on eight out of 13 charges.\u00a0<\/span><\/p>\n<h2 class=\"sc-2ed2039d-2 hmmXcn gg-dark:text-white scene:font-itc-avant-garde-gothic-pro scene:font-light\" style=\"margin-top:2em;text-align:left;padding-bottom:16px;margin-bottom:16px;border-bottom:1px solid #dfe2e4\"><span style=\"font-weight:400\">What charges does Bankman-Fried face and why?<\/span><\/h2>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Bankman-Fried historically denied Alameda Research was heavily intertwined with the FTX exchange, stressing it was a completely independent business. The CoinDesk revelations, which became the trigger for the FTX collapse in 2022, exposed otherwise.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">The FTX exchange should have had reserve funds to match the exact value of its customer&#8217;s cryptocurrency holdings on the platform. Instead, it couldn\u2019t meet withdrawals when FTX users began to panic in November 2022 because the funds had allegedly been routed elsewhere over the years of FTX operation under Bankman-Fried.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">The case against the former CEO accuses him of sending FTX customer funds to Alameda\u2019s accounts to fund its activities, including high-risk trading.\u00a0 There are still <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.wsj.com\/articles\/ftx-says-8-9-billion-in-customer-funds-are-missing-c232f684\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$8.9 billion<\/span><\/a><span style=\"font-weight:400\"> of FTX customer funds missing.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">The charges filed by the US Department of Justice stem from allegations that Bankman-Fried and potentially his colleagues either <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/146282\/ftx-lied-about-suspicious-wire-transfers\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">mismanaged<\/span><\/a><span style=\"font-weight:400\"> or misappropriated funds for trading activity via Alameda Research, other investments, and other acquisitions and purchases, as well as for substantial marketing campaigns and <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/151753\/sam-bankman-fried-campaign-finance-charge\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">political donations<\/span><\/a><span style=\"font-weight:400\">.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">It\u2019s also alleged that Bankman-Fried authorized the use of billions more from FTX to repay debts to external lenders. Add to all this, it\u2019s estimated that Bankman-Fried loaned himself at least <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/123781\/sam-bankman-fried-2-2-billion-alameda-research-caroline-ellison\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">$1 billion<\/span><\/a><span style=\"font-weight:400\"> to find his luxury lifestyle and <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/117989\/caroline-ellison-knew-that-it-was-wrong-implicates-sam-bankman-fried\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">approved loans<\/span><\/a><span style=\"font-weight:400\"> to his parents and co-workers.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">The FTX co-founder has a total of 13 charges laid against him, including conspiracy to commit wire fraud on customers of FTX and lenders to Alameda research, wire fraud on customers of FTX and Alameda research, conspiracy to commit fraud on FTX customers relating to the purchase and sale of derivatives, conspiracy to commit securities fraud on investors of FTX and conspiracy to commit money laundering.\u00a0<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Bankman-Fried will face the first seven <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/199852\/three-reasons-sbf-will-be-convicted-former-sec-lawyer\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">charges<\/span><\/a><span style=\"font-weight:400\"> in the trial beginning October 3, 2023, and a second trial for the remaining accusations is set for March 2024.<\/span><\/p>\n<p class=\"font-meta-serif-pro scene:font-noto-sans scene:text-base scene:md:text-lg font-normal text-lg md:text-xl md:leading-9 tracking-px text-body gg-dark:text-neutral-100\"><span style=\"font-weight:400\">Decrypt is updating a <\/span><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/decrypt.co\/199892\/trial-sam-bankman-fried-live-blog-latest-news-insights\" class=\"sc-adb616fe-0 ePvUAp\"><span style=\"font-weight:400\">live blog<\/span><\/a><span style=\"font-weight:400\"> detailing events and revelations as Bankman-Fried\u2019s trial commences. The trial itself could last up to six weeks and is a case that has been described as \u201cone of the biggest financial frauds\u201d in U.S. history by New York U.S. attorney Damian Williams.<\/span><\/p>\n<div class=\"my-4 border-b border-decryptGridline\">\n<div class=\"text-left p-8 md:py-12 md:px-12 max-w-prose relative\"><span class=\"border-t-4 border-l-4 w-4 h-4 md:border-t-[6px] md:border-l-[6px] md:w-6 md:h-6 border-decryptPurple dark:border-decryptNeon gg-dark:border-cc-pink-2 absolute top-4 left-4 md:top-6 md:left-6\" \/><span class=\"border-t-4 border-l-4 w-4 h-4 md:border-t-[6px] md:border-l-[6px] md:w-6 md:h-6 border-decryptPurple dark:border-decryptNeon gg-dark:border-cc-pink-2 absolute rotate-180 bottom-4 right-4 md:bottom-6 md:right-6\" \/><\/p>\n<h3 class=\"font-akzidenz-grotesk font-bold text-xl md:text-3xl mb-6 md:text-center gg-dark:text-white\">Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>In brief Bankman-Fried creates FTX, which grows to be one of the largest cryptocurrency exchanges in the world and becomes a billionaire and poster icon for everyday cryptocurrency use. FTX collapses amidst controversy, and $8.9 billion in customer assets are missing in what will be one of the biggest frauds in history. Bankman-Fried and former [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":168176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-168175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/168175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=168175"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/168175\/revisions"}],"predecessor-version":[{"id":168178,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/168175\/revisions\/168178"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/168176"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=168175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=168175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=168175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}