The Trial of Sam Bankman Fried: What you need to know about FTX's downfall
Former CEO of the world’s second-largest cryptocurrency exchange, FTX, has been arrested and charged with defrauding investors and violating securities laws after the exchange collapsed in November 2022. Sam “SBF” Bankman-Fried, who was granted bail on a $250 million bond paid by his parents, faces eight criminal counts in the United States, with a potential 115-year prison sentence if convicted. Bankman-Fried has pleaded not guilty to all charges and is scheduled for trial in October.
The collapse of cryptocurrencies last year caused severe financial stress for numerous crypto firms, including FTX, which sought bankruptcy protection after customers withdrew their money. Caroline Ellison, former CEO of FTX’s bankrupt sister company, and former FTX co-founder Gary Wang, were also charged with fraud. Both pleaded guilty and are cooperating in the Justice Department’s investigation into Bankman-Fried.
Here’s the story so far.
Trouble in paradise
Sam Bankman-Fried (SBF), the troubled founder of bankrupt Bahamas-based crypto exchange FTX was arrested on December 12 in the Bahamas, after US prosecutors pressed criminal charges against him. The Bahamian attorney-general's office announced that the arrest had proceeded after formal…
