At one point, FTX was seemingly on top of the world, with more than a million customers and celebrity endorsements from tennis great Naomi Osaka to comedy icon Larry David.
Sam Bankman-Fried – also known as SBF – appeared at events with former British Prime Minister Tony Blair and US President Bill Clinton.
But then questions started to be asked about the links between FTX and Bankman-Fried’s other business, Alameda.
The Securities and Exchange Commission became involved. Major crypto firm Binance offered and then withdrew a bailout, and suggested there might be irregularities in how customer funds had been handled.
FTX entered a death spiral.
With no way to pay its debts, FTX filed for bankruptcy in November 2022 – but it was discovered that $8bn in customer funds were missing.
Bankman-Fried was arrested, and later found guilty of fraud and money laundering following a month-long trial.
The “Crypto King’s” downfall was complete. Today, he – and the world – will find out what his punishment will be.
Source link: https://www.bbc.co.uk/news/live/world-us-canada-68656415