FTX founder Sam Bankman-Fried sentenced to 25 years in prison (2024)

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FTX founder Sam Bankman-Fried sentenced to 25 years in prison? ›

Samuel Bankman-Fried, also known as SBF, 32, of Stanford, California, was sentenced today to 25 years in prison, three years of supervised release, and ordered to pay $11 billion in forfeiture for his orchestration of multiple fraudulent schemes.

At Bankman-Fried's sentencing hearing, Kaplan agreed. He said FTX's customers had lost some $8bn and that its investors had lost $1.7bn.

Nov. 8: Binance founder and CEO Changpeng Zhao said his company had signed a letter of intent to buy FTX because the smaller exchange was experiencing a “significant liquidity crunch.” That deal would be contingent, however, on a look at the books at FTX. The price for bitcoin tumbles 13%.

Samuel Benjamin Bankman-Fried (born March 5, 1992), commonly known as SBF, is an American entrepreneur who was convicted of fraud and related crimes in November 2023.

FTX founder Sam Bankman-Fried, left, arrives at a federal courthouse in Manhattan on Feb. 16, 2023. Nearly all customers of FTX will get their money back, plus interest, after the cryptocurrency exchange imploded 17 months ago.

FTX founder Sam Bankman-Fried and senior staff spent customer funds on technology investments, luxury real estate and political contributions, among other things. The missing funds are at the heart of Bankman-Fried's criminal trial, which kicked off in Manhattan federal court this week.

FTX crashed due to mismanagement of funds, lack of liquidity and the large volume of withdrawals. Binance announced it would buy FTX to prevent a larger market crash, but quickly bailed out of the deal as more news reports of mishandled customer funds surfaced.

A surge of customer withdrawals due to concerns over this questionable financial valuation practice and unusually close relationship with Alameda pushed FTX and Alameda into bankruptcy and shook the volatile crypto market.

When more than $400 million worth of crypto was mysteriously pulled out of the coffers of what was once the world's biggest cryptocurrency exchange, FTX, on the very day that it declared bankruptcy in November of 2022, many initially suspected insiders at the company—including, potentially, then CEO Sam Bankman-Fried, ...

Changpeng Zhao (CZ)

What does FTX stand for? ›

FTX Trading Ltd., commonly known as FTX (short for "Futures Exchange"), is a bankrupt company that formerly operated a cryptocurrency exchange and crypto hedge fund.

One sunny day, while Greenie was exploring the ocean, it accidentally swam into a mysterious portal. When it came out on the other side, it found itself in a big office with lots of computers and people in suits. It was Sam Bankman-Fried's FTX offices on November 8, 2022!

FTX, once among the largest cryptocurrency exchanges in the world, said this week that nearly all of its customers will receive the money back that they are owed, two years after its monumental collapse. FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors.

The bankruptcy of FTX, a Bahamas-based cryptocurrency exchange, began in November 2022. The collapse of FTX, caused by a spike in customer withdrawals that exposed an $8 billion hole in FTX's accounts, served as the impetus for its bankruptcy.

FTX said Tuesday it had recovered assets associated with the exchange at the time of its collapse with an estimated value of between $14.5 billion and $16.3 billion. Ray, a restructuring specialist, took over as CEO in November 2022 to shepherd what was left of the firm through bankruptcy.

FTX is repaying its customers through the liquidation of its assets, which have appreciated significantly in value, and through the positive effects of a bullish cryptocurrency market. 3. What role did the cryptocurrency market play in FTX's recovery?