In a Nutshell
Samuel Bankman-Fried, also known by his initials SBF, is an American entrepreneur, investor and former billionaire. Bankman-Fried was the founder and CEO of the cryptocurrency exchange FTX and cryptocurrency trading firm Alameda Research. Wikipedia
What do we know now:
- FTX founder Sam Bankman-Fried charged with fraud 12/12/22
- Sam Bankman-Fried has been indicted on eight criminal charges, including wire fraud and conspiracy by misusing customer funds, according to an indictment from the US Southern District of New York. The FTX founder was arrested Monday in the Bahamas and was arraigned in a Nassau court Tuesday.
- FTX founder Samuel Bankman-Fried faces a maximum of 115 years in prison if convicted on all counts against him
- “It’s so hard to compare these things but…this is one of the biggest financial frauds in American history,”
- Bankman-Fried is denied bail by a judge in the Bahamas.
- The new FTX chief says the company appeared to use ‘old-fashioned embezzlement.’
- $8 billion loss to customers
- By January 2018, his team were making $1m every day.
- Sam Bankman-Fried became an official billionaire in 2021, thanks to his secondary and more high-profile business, FTX. The crypto exchange grew to be the second largest in the world and a titan of the industry, seeing $10-$15bn traded a day.
- The beginning of the end came though when FTX’s main competitor – Binance – publicly sold off all its crypto tokens linked to FTX a few days later.
- It sparked a run on FTX, with panicked customers withdrawing billions of dollars from the cryptocurrency exchange.
This is an ongoing story, we will update as more info comes out.