FTX Fiasco Timeline: From Inception To Sam Bankman-Fried’s 25-Year Jail Sentencing, Here’s A Definitive Account Of Top Events Sam Bankman-Fried was sentenced to 25 years in prison on Thursday.Here’s a complete account of what went down.Sam Bankman-Fried, the ex-CEO of the now-defunct cryptocurrency exchange FTX, was sentenced to 25 years in prison over an $8-billion scam after a dramatic legal showdown.In case you were wondering what went down, here’s a detailed timeline of the FTX fiasco, from the inception of the company to Bankman-Fried’s prison sentencing: May 2019: Establishment of FTX In 2019, Sam Bankman-Fried initiated FTX, a cryptocurrency exchange that would eventually be valued at over $32 billion at its peak.November 6, 2022: The Unraveling Begins A report by CoinDesk unveiled that Alameda Research, another venture of Bankman-Fried, held a significant amount of its assets in illiquid FTT tokens, some of which were used as collateral.The report also highlighted the lack of independence between Alameda and FTX, raising concerns about their operations.November 8, 2022: Binance’s Initial Acquisition Move Changpeng Zhao of Binance announced an intent to acquire FTX through a preliminary agreement, spurred by a drastic drop in FTT token value from over $22 to $6, following the unsettling revelations.
November 9, 2022: Binance Withdraws Offer Citing concerns over mismanagement and ongoing investigations into FTX by U.S.
regulators, Binance retracted its bailout offer for the exchange.ALSO READ: [How To Put A Stop To Crypto Pump-And-Dump Schemes](https://news.abplive.com/business/crypto/how-to-put-a-stop-to-crypto-pump-and-dump-schemes-1641650) November 10, 2022: FTX Halts New Transactions FTX suspended new account creations and deposits, advising clients against further investments.Additionally, Sam Bankman-Fried announced the closure of Alameda Research, and the Bahamian authorities froze the company’s assets.November 11, 2022: Bankruptcy Filing FTX filed for bankruptcy in Delaware, marking a significant blow to its customers and investors.
Bankman-Fried stepped down, and John J.Ray III took over as CEO.November 15, 2022: Legal Action Against Bankman-Fried An FTX investor, Edwin Garrison, filed a lawsuit against Bankman-Fried and several celebrity promoters, accusing them of misleading clients.
November 16, 2022: Congressional Hearing Announcement The U.S.House Financial Services Committee announced it would hold hearings in December to investigate the FTX collapse.December 1, 2022: Bankman-Fried’s Public Denial In his first public statement since FTX’s collapse, Bankman-Fried denied committing fraud.
December 10, 2022: Scheduled Congressional Testimony Bankman-Fried was slated to testify before a U.S.House Committee.December 12, 2022: Arrest in The Bahamas Bankman-Fried was detained by Bahamian authorities, facing criminal charges from U.S.prosecutors, and was incarcerated at Fox Hill Prison.December 15, 2022: Bail Request Bankman-Fried petitioned for bail in the Supreme Court of the Bahamas.December 22, 2022: Bail Granted A U.S.
Magistrate Court granted Bankman-Fried’s bail request, setting bond at $250 million, leading to house arrest.December 26, 2022: Hidden Loans Uncovered Billions in concealed loans to executives and managers, including Bankman-Fried, were disclosed by Caroline Ellison, ex-CEO of Alameda Research, highlighting a deliberate effort to obscure financial borrowings from FTX’s exchange.ALSO READ: [Shark Tank Star Mark Cuban Says Wash Trades Could Cause Next Crypto Implosion ](https://news.abplive.com/business/crypto/shark-tank-star-mark-cuban-wash-trades-crypto-implosion-ftx-sam-bankman-fried-1574433) January 3, 2023: Not-Guilty Plea Bankman-Fried pleaded not guilty to multiple charges relating to defrauding investors and misappropriating company funds.February 22, 2023: Additional Criminal Charges Four new charges were added against Bankman-Fried, including accusations of illegal political donations and bank fraud, bringing the total to 12 charges.
March 2, 2023: Guilty Plea from FTX Engineer Nishad Singh, the Indian-origin ex-director of engineering at FTX, pleaded guilty to criminal charges, acknowledging his awareness of misuse of customer funds.June 29, 2023: Legal Action Against Former FTX Lawyer FTX sued its former chief legal officer for his role in facilitating fraudulent activities within the company.August 12, 2023: Bail Plea Denied A judge ruled that Bankman-Fried must remain in custody until his trial, citing attempts to tamper with witnesses.November 2, 2023: Conviction Bankman-Fried was found guilty of embezzling billions from FTX, marking a significant legal and financial downfall.ALSO READ: [‘I’m Sorry’: FTX Founder Sam Bankman-Fried Admits To Not Minimising Customers’ ‘Suffering’ After Being Sentenced To 25 Years In Jail](https://news.abplive.com/business/crypto/ftx-sam-bankman-fried-jail-prison-25-year-sentence-imprisonment-usd-8-billion-crypto-fraud-timeline-video-what-happened-1675630) March 28, 2024: Sentencing Sam Bankman-Fried was sentenced to 25 years in prison, with the judge dismissing his defence and affirming his guilt in financial misconduct and perjury during his trial.[Business News on abp LIVE](https://news.abplive.com/business)for more latest stories and trending topics.Watch breaking news and top headlines online on [abp News LIVE TV](https://news.abplive.com/live-tv) [See Today’s Weather](https://www.accuweather.com/?partner=web_abp_adc) Top Headline [ India ‘My Father Was Given Slow Poison’: Son Umar On Mukhtar Ansari’s Death ](https://news.abplive.com/news/india/mukhtar-ansari-death-news-umar-ansari-slow-poison-post-mortem-exam-banda-hospital-up-1675625) [ Technology AI For Public Good, Women-Led Development, More: PM Modi Discusses Innovative Sectors With Bill Gates ](https://news.abplive.com/technology/narendra-modi-bill-gates-interview-meet-video-watch-youtube-ai-women-climate-youtube-watch-video-twitter-x-1675628) [ India Months After Praful Patel Joins NDA, CBI Closes Probe In UPA-Era Aircraft Leasing Case ](https://news.abplive.com/news/india/cbi-closes-investigation-into-praful-patel-alleged-involvement-in-air-india-indian-airlines-merger-case-1675636) [ India Who Was Mukhtar Ansari? Don-Turned-MLA Of 5 Terms Who Spent Last 2 Decades Of Life In Jail ](https://news.abplive.com/news/india/mukhtar-ansari-death-know-all-about-the-don-who-once-ruled-purvanchal-and-his-downfall-under-yogi-regime-1675592) Trending News and tablets [ Cryptocurrency 7 Photos Ethereum Shanghai Upgrade Scheduled To Take Place On April 12: All You Need To Know ](https://news.abplive.com/photo-gallery/business/crypto-ethereum-shanghai-upgrade-event-blockchain-upgrades-updates-news-features-1594726) [ Cryptocurrency 8 Photos Bitcoin Rises Above $30,000 For The First Time Since June 2022.
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