The Rise and Fall of Sam Bankman-Fried and FTX
2017: The Beginning
Sam Bankman-Fried, a Massachusetts Institute of Technology graduate, leaves his job at Jane Street Capital to establish Alameda Research, a trading firm focused on cryptocurrency.
May 2019: FTX Emerges
Bankman-Fried, along with former Google employee Gary Wang, founds FTX as a new platform for trading crypto tokens and derivatives.
October 2021: FTX's Soaring Valuation
FTX raises $420 million in venture funding, valuing the company at $25 billion. Bankman-Fried's net worth skyrockets, landing him on the Forbes billionaires list with an estimated wealth of $22.5 billion.
February 2022: Cryptocurrency Hype Peaks
During the NFL Super Bowl broadcast, cryptocurrency advertisements flood the airwaves, symbolizing the peak of the craze for digital assets. FTX's advertisement featuring actor Larry David adds to the frenzy.
June-July 2022: Bankman-Fried's Charitable Moves
Amidst a market downturn, Bankman-Fried's Alameda Research extends substantial credit facilities to crypto lenders Voyager Digital and BlockFi, earning him the moniker of the "white knight" of the cryptocurrency sector.
November 2022: Trouble Looms
CoinDesk publishes a leaked Alameda Research balance sheet revealing significant holdings in FTX's own token, FTT. This revelation triggers a market sell-off and prompts rival exchange Binance to divest its FTT holdings.
December 2022: Legal Woes Begin
FTX files for U.S. bankruptcy protection following a mass exodus of customers, leading to Bankman-Fried's resignation as CEO. He is subsequently arrested in the Bahamas and indicted on fraud and conspiracy charges.
January 2023: Legal Battle Begins
Bankman-Fried pleads not guilty to the charges and denies allegations of fund misappropriation. His trial is scheduled for October.
August 2023: Bail Revoked
Bankman-Fried's bail is revoked after evidence suggests tampering with witnesses. He is remanded to Brooklyn's Metropolitan Detention Center pending trial.
October-November 2023: Trial and Conviction
The trial commences in Manhattan federal court, with Bankman-Fried testifying in his defense. Despite his testimony, he is convicted on all charges.
March 28, 2024: Sentencing
Sam Bankman-Fried is scheduled to be sentenced for his fraud conviction, marking the culmination of a dramatic saga that saw the meteoric rise and subsequent fall of both him and the FTX cryptocurrency exchange.
As the legal proceedings draw to a close, the cryptocurrency world awaits the outcome of Bankman-Fried's sentencing and reflects on the turbulent journey that led to this moment.
