Sam Bankman-Fried's Fraud Conviction: A Timeline of Key Events

The Rise of Sam Bankman-Fried and FTX

Sam Bankman-Fried, an MIT graduate and former quantitative trader, launched Alameda Research in 2017, focusing on cryptocurrency trading. In May 2019, he co-founded FTX with Gary Wang, aiming to create a dynamic platform for trading crypto tokens and derivatives. By October 2021, FTX had secured $420 million in venture funding, valuing the company at $25 billion, and Bankman-Fried was featured on the Forbes billionaires list.

Cryptocurrency Boom and Bankman-Fried's Influence

In February 2022, during the height of the cryptocurrency craze, FTX gained significant exposure through a Super Bowl advertisement. Bankman-Fried was seen as a "white knight" in the crypto sector during mid-2022, offering financial support to distressed firms like Voyager Digital and BlockFi.

FTX's Collapse and Legal Challenges

The turning point came in November 2022 when a leaked balance sheet revealed that Alameda Research's assets were heavily tied to FTX's token, FTT. This led to a significant drop in FTT's market cap. Subsequently, FTX experienced massive customer withdrawals, prompting Binance's nonbinding acquisition offer, which was quickly withdrawn. On November 11, 2022, FTX filed for bankruptcy, and Bankman-Fried resigned.

Legal Proceedings and Testimonies

Following FTX's downfall, Bankman-Fried faced legal actions, including a lawsuit against FTX celebrity promoters. He was arrested in December 2022, with fraud and conspiracy charges filed against him. Throughout 2023, key figures in Bankman-Fried's circle pleaded guilty and cooperated with prosecutors, while Bankman-Fried maintained his innocence.

Trial and Conviction

Bankman-Fried's trial commenced in October 2023. Despite his testimony defending his actions, he was convicted on November 2, 2023, of all seven charges related to the FTX collapse. This conviction marks the conclusion of a high-profile legal saga, significantly affecting the cryptocurrency landscape.