BANKMAN-FRIED, Sam (FTX Collapse)
Sam Bankman-Fried built the cryptocurrency exchange FTX. After its collapse in 2022, a jury convicted him of fraud and conspiracy over the diversion of customer funds.
FTX opened in 2019. It let customers trade digital assets and held their deposits. Alameda Research, the trading firm Bankman-Fried had started two years earlier, could draw on FTX customer funds. When customers rushed to withdraw money in November 2022, FTX could not meet the demand and entered bankruptcy.
Caroline Ellison, who had led Alameda, testified for the prosecution. The jury also heard from FTX co-founder Gary Wang and engineering director Nishad Singh. The testimony and financial records helped explain how the businesses were connected and how Alameda gained access to money customers had entrusted to FTX.
A jury found Bankman-Fried guilty on seven counts in 2023. A federal judge sentenced him to 25 years in prison in March 2024. In June 2026, the U.S. Court of Appeals for the Second Circuit affirmed the judgment.
A related topic is Bitcoin Psyop Theory.
Bibliography:
- United States v. Bankman-Fried, No. 24-961-cr (2d Cir. June 12, 2026).
- U.S. Department of Justice. (2024, March 28). Samuel Bankman-Fried sentenced to 25 years for his orchestration of multiple fraudulent schemes.