Current:Home > ScamsA timeline of the collapse at FTX-DB Wealth Institute B2 Reviews & Ratings
A timeline of the collapse at FTX
lotradecoin referral bonus structure View Date:2024-12-25 16:34:06
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 exchange estimates that it has between $14.5 billion and $16.3 billion to distribute to them.
Here is a timeline of what led up to this week’s announcement after an implosion at FTX kicked off what many had expected to become a “crypto winter.”
2022
Nov. 2: Coindesk reports Alameda Reseach, Bankman-Fried’s cryptocurrency trading firm, holds a large amount of FTT, a token issued by FTX, suggesting the finances of the two are intertwined and Alameda faces a cash crunch. The report spooks participants in the crypto market.
Nov. 6: Rival cryptocurrency exchange Binance announces that the firm plans to sell all its holdings in FTT. The price of FTT tanks.
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%.
Nov. 9: Cryptocurrency prices plunge and after getting a closer look at the finances of FTX, Binance retreated and said there would be no acquisition. “In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,” Binance said in a statement. Bitcoin prices drop another 14%.
Nov. 10: Cryptocurrency lender BlockFi announced it is “not able to do business as usual” and was pausing client withdrawals as a result of FTX’s implosion.
Nov. 11: FTX files for Chapter 11 and Bankman-Fried resigns. John Ray III, a long-time bankruptcy litigator who is best known for having to clean up the mess made after the collapse of Enron, is named the new CEO.
In its bankruptcy filing, FTX listed more than 130 affiliated companies around the globe. The company valued its assets between $10 billion to $50 billion, with a similar estimate for its liabilities. Bitcoin falls 10%.
Nov. 17: Ray gives a damning description of FTX’s operations under Bankman-Fried, from a lack of security controls to business funds being used to buy employees homes and luxuries.
Nov. 30: As part of a media blitz, Bankman-Fried tells New York Time’s Andrew Ross-Sorkin, “Look, I screwed up,” and didn’t knowingly misuse clients’ funds.
Dec. 12: Bankman-Fried is arrested in the Bahamas, where FTX is headquartered.
Dec. 13: The U.S. government charges Bankman-Fried with a host of financial crimes, alleging he intentionally deceived customers and investors to enrich himself and others, while playing a central role in the company’s multibillion-dollar collapse.
Federal prosecutors said Bankman-Fried devised “a scheme and artifice to defraud” FTX’s customers and investors beginning the year it was founded. He illegally diverted their money to cover expenses, debts and risky trades at Alameda Research, and to make lavish real estate purchases and large political donations, prosecutors said in a 13-page indictment.
Dec. 22: Bankman-Fried’s parents agreed to sign a $250 million bond and keep him at their California home while he awaits trial.
2023
August 11: Judge revoked Bankman-Fried’s bail and sent him to jail after concluding he had repeatedly tried to influence witnesses against him.
Oct. 3: Jury selection began for the trial.
Oct. 27: Bankman-Fried took the stand in his trial. He again acknowledged failures but denied defrauding anyone.
Nov. 3: Bankman-Fried is convicted of fraud for stealing at least $10 billion from customers and investors.
2024
March 28: Bankman-Fried is sentenced to 25 years in prison. Bitcoin has roared back from a massive sell-off during the scandal. Prices are up nearly 70%.
April 30: Changpeng Zhao, the founder of Binance, is sentenced to four months in prison for looking the other way as criminals used the platform to move money connected to child sex abuse, drug trafficking and terrorism.
May 8: FTX says that nearly all of its customers will receive the money back that they are owed, two years after the cryptocurrency exchange imploded, and some will get more than that.
veryGood! (412)
Related
- Wally Amos, 88, of cookie fame, died at home in Hawaii. He lost Famous Amos but found other success
- Who won? When is the next draw? What to know about Powerball this weekend
- Trump criticized by rivals for calling 6-week abortion ban a terrible thing
- Government should pay compensation for secretive Cold War-era testing, St. Louis victims say
- Infamous LA officer’s gun found in $1 million watch robbery case
- Hollywood writers reach a tentative deal with studios after nearly five month strike
- Usher confirmed as Super Bowl 2024 halftime show headliner: 'Honor of a lifetime'
- After summer’s extreme weather, more Americans see climate change as a culprit, AP-NORC poll shows
- Family of man killed by Connecticut police officer files lawsuit, seeks federal probe of department
- More schools are adopting 4-day weeks. For parents, the challenge is day 5
Ranking
- Austin Dillon loses automatic playoff berth for actions in crash-filled NASCAR win
- AP Top 25: Colorado falls out of rankings after first loss and Ohio State moves up to No. 4
- South Korea breezes through first day of League of Legends competition in Asian Games esports
- QB Joe Burrow’s status unclear as Rams and Bengals meet for first time since Super Bowl 56
- Giants trading Jordan Phillips to Cowboys in rare deal between NFC East rivals
- 'Hey Jude,' the sad song Paul McCartney wrote for Julian Lennon is also 'stark, dark reminder'
- NFL Week 3: Cowboys upset by Cardinals, Travis Kelce thrills Taylor Swift, Dolphins roll
- WEOWNCOIN: The Security of Cryptocurrency and Digital Identity Verification
Recommendation
-
Demi Lovato opens up about how 'daddy issues' led her to chase child stardom, success
-
DeSantis campaign pre-debate memo criticizes Trump, is dismissive of other rivals despite polling gap closing
-
Who won? When is the next draw? What to know about Powerball this weekend
-
Tigst Assefa shatters women’s marathon world record in Berlin
-
New York county signs controversial mask ban meant to hide people's identities in public
-
Biden tells Zelenskyy U.S. will provide Ukraine with ATACMS long-range missiles
-
Gisele Bündchen opens up about modeling and divorce
-
Lizzo tearfully accepts humanitarian award after lawsuits against her: 'I needed this'