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Live·Started Sep 1, 2017

The FTX Empire: From Crypto King to Federal Prison

A comprehensive look at the rise of Sam Bankman-Fried’s crypto empire, the $8 billion fraud that brought it down, and the ongoing 2026 recovery efforts to repay millions of victims.

Timelined

by Timelined

Curator · 2 timelines

#ftx#crypto#bankruptcy#sam-bankman-fried#alameda-research

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Key moments

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May 2

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Sep 2017

Fri, Sep 1

Alameda Research is founded

SBF leaves Jane Street to start a crypto quantitative trading firm

Sam Bankman-Fried (SBF) and Tara MacAulay co-found Alameda Research in Berkeley, California. The firm initially focuses on "arbitrage" opportunities—exploiting the price difference of Bitcoin between different countries (notably the "Kimchi Premium" in Japan). SBF later admits he chose the name "Research" to avoid the banking scrutiny typically associated with "cryptocurrency" firms.

→ en.wikipedia.org
May 2019

Wed, May 1

FTX Exchange Launches in Hong Kong

A new exchange "by traders, for traders" enters the market

Leveraging the success of Alameda, SBF launches FTX in Hong Kong. The exchange quickly gains traction by offering complex derivative products and a user-friendly interface. While headquartered in Hong Kong, it officially operates out of Antigua and Barbuda to navigate regulatory landscapes. Alameda Research serves as the primary "liquidity provider" for the exchange, a relationship that would later be revealed as the core of the fraud.

→ www.reuters.com

Thu, May 2

Key Moment

Nishad Singh and the "Allow Negative" Backdoor

A few lines of code create an $8 billion loophole

As FTX prepares for its global launch, Nishad Singh—a former Facebook engineer and high school friend of SBF's brother—joins Gary Wang to build the exchange's technical engine. Together, they hard-code a secret feature into the platform's risk management software: the "allow_negative" flag . This flag essentially grants Alameda Research a "God Mode" status, exempting it from the automated liquidation process that applies to all other FTX users. While the public is told that FTX has the most sophisticated real-time risk engine in crypto, this backdoor allows Alameda to borrow an unlimited amount of customer funds without collateral. Singh's role as the "architect" of this system makes him one of only four people (alongside SBF, Wang, and Ellison) who knows the exchange is structurally insolvent from day one.

→ www.sec.gov
Aug 2021

Mon, Aug 23

The Exodus to the Bahamas

FTX flees Hong Kong's strict regulations and COVID rules

FTX moves its global headquarters from Hong Kong to Nassau, Bahamas. SBF cites the Bahamas' "proactive" regulatory stance on crypto (specifically the DARE Act) and frustrations with Hong Kong's strict COVID-19 quarantine mandates. The move cements FTX's image as a global, high-flying entity, soon followed by the construction of a $60 million luxury headquarters.

→ blockworks.com
Jan 2022

Mon, Jan 31

Key Moment

FTX Reaches Massive $32 Billion Valuation

A Series C funding round propels SBF to the top of the finance world

FTX announces a $400 million Series C funding round, which propels the company’s valuation to $32 billion—a tenfold increase from the previous year. This round attracts some of the most prestigious institutional investors in the world, including Singapore’s sovereign wealth fund Temasek, the Ontario Teachers’ Pension Plan, SoftBank, and Tiger Global. At this moment, Sam Bankman-Fried is the "golden boy" of finance, appearing on the covers of Forbes and Fortune . The capital infusion is intended to fund global expansion and regulatory acquisitions, but it also serves to mask the growing financial interdependence between FTX and SBF’s private trading firm, Alameda Research.

→ www.cnbc.com
Feb 2022

Tue, Feb 1

Key Moment

The "Don’t Miss Out" Super Bowl Ad

Larry David stars in a high-profile marketing blitz

During Super Bowl LVI, FTX airs a high-production commercial starring Curb Your Enthusiasm creator Larry David. The ad features David dismissing historical inventions—the wheel, the toilet, the lightbulb—before dismissing FTX with the phrase, "Eh, I don't think so." The tagline "Don't Miss Out" targets retail investors through the fear of missing the next financial revolution. This ad is the centerpiece of a massive celebrity-led campaign. FTX secures naming rights to the Miami Heat’s arena, partners with Tom Brady and Gisele Bündchen (who take equity stakes), and signs Steph Curry as a brand ambassador. These deals create a false sense of institutional security, leading millions of retail users to believe their funds are "safe" because of the high-profile associations.

→ variety.com
Jun 2022

Wed, Jun 1

SBF: The "Lender of Last Resort"

FTX provides a $400 million credit line to struggling BlockFi

As the "crypto winter" sets in following the Terra/Luna collapse, FTX positions itself as a savior. SBF provides a $400 million revolving credit facility to BlockFi, which includes an option for FTX to buy the lender. Simultaneously, FTX makes a public offer to bail out Voyager Digital customers, though Voyager's lawyers later call the move "a low-ball bid dressed up as a white knight rescue."

→ hashdex.com

Thu, Jun 30

Key Moment

Alameda’s balance sheet shows dangerous FTT concentration

The fragility is already there, even if the public cannot yet see it

The CFTC complaint later described a private June 30 Alameda balance sheet dominated by FTT and other affiliated assets. That document became the basis for the November scoop that set off the run.

→ www.cftc.gov
Aug 2022

Fri, Aug 19

FDIC Orders FTX to Stop "Misleading" Claims

Regulators flag false claims about deposit insurance

The U.S. Federal Deposit Insurance Corporation (FDIC) issues a cease-and-desist letter to FTX US and four other companies. The regulator orders them to stop making "false and misleading" claims that customer funds were FDIC-insured. This is one of the first major public regulatory cracks in the FTX facade.

→ networked.substack.com
Nov 2022

Wed, Nov 2

Key Moment

The CoinDesk Bombshell

A leaked balance sheet reveals Alameda is built on "magic money"

Ian Allison of CoinDesk publishes a report on a leaked balance sheet from Alameda Research that sends shockwaves through the industry. The document reveals that the majority of Alameda’s $14.6 billion in assets consists of "FTT," a token created and controlled by FTX itself. This proves that SBF’s trading firm is not a market-neutral powerhouse, but is instead built on "magic money" printed by its sister exchange. The balance sheet shows $5.8 billion in FTT—far more than the total circulating supply at the time—meaning the assets are essentially illiquid. Experts immediately realize that if the price of FTT drops, Alameda will become insolvent, and because Alameda is heavily indebted to FTX, the exchange itself is at risk.

→ www.coindesk.com

Sun, Nov 6

Key Moment

Changpeng Zhao Fires the Opening Salvo

Binance CEO announces plans to liquidate all FTT holdings

Changpeng Zhao (CZ), CEO of Binance, tweets that "due to recent revelations," Binance will liquidate its remaining FTT holdings. This move signals a massive vote of no-confidence from the industry's biggest player and accelerates the panic among FTX users.

→ x.com

Mon, Nov 7

Key Moment

Bankman-Fried tweets that FTX is fine

SBF attempts to stop the bleeding with a now-infamous tweet

As withdrawals skyrocket, Sam Bankman-Fried tweets: "FTX is fine. Assets are fine." He claims the exchange has enough to cover all client holdings. He later deletes the tweet as the reality of an $8 billion hole becomes impossible to ignore.

→ www.ig.com

Tue, Nov 8

Key Moment

The $6 Billion Run and a Shocking "Rescue"

FTX freezes withdrawals and seeks a bailout from Binance

Facing $6 billion in withdrawal requests in just 72 hours, FTX pauses all customer withdrawals. SBF announces that he has reached a non-binding agreement for Binance to acquire FTX's non-US business to cover the liquidity crunch.

→ markets.businessinsider.com

Wed, Nov 9

Key Moment

Binance Walks Away; The Truth Revealed at Alameda

The deal collapses as Caroline Ellison confesses to employees

After just 24 hours of reviewing FTX's internal books, Binance officially pulls out of the acquisition. In a public statement, Binance cites "mishandled customer funds and alleged US agency investigations." The news triggers a total collapse in the price of FTT. Simultaneously, in a tearful all-hands meeting at Alameda’s Hong Kong office, CEO Caroline Ellison confesses to the remaining staff. She admits that Alameda had been borrowing billions in FTX customer deposits to cover loans that were called in following the Terra/Luna collapse in May 2022. She notes that she, SBF, Gary Wang, and Nishad Singh were all aware of the "backdoor" that allowed Alameda to maintain a negative balance on the exchange.

→ www.binance.com

Thu, Nov 10

Bahamian Regulators Freeze FTX Assets

The Securities Commission of the Bahamas steps in

As the liquidity crisis deepens, Bahamian regulators freeze the assets of FTX Digital Markets Ltd. This effectively ends any hope of SBF managing a private "workaround" and signals the beginning of international insolvency proceedings.

→ www.reuters.com

Fri, Nov 11

Key Moment

FTX Files for Chapter 11 Bankruptcy

The $32 billion empire collapses in just nine days

FTX, Alameda Research, and 130 affiliated entities file for bankruptcy. SBF resigns as CEO and is replaced by John J. Ray III. Ray famously states, "Never in my career have I seen such a complete failure of corporate controls."

→ www.reuters.com

Wed, Nov 16

The Celebrity Legal Backlash Begins

Investors file a class-action lawsuit against FTX promoters

A class-action lawsuit is filed in Florida against SBF and celebrities who promoted the exchange, including Larry David, Tom Brady, and Shaquille O'Neal. The lawsuit alleges these ambassadors helped drive consumers into a "house of cards."

→ www.theguardian.com
Dec 2022

Mon, Dec 12

Key Moment

Sam Bankman-Fried Arrested in the Bahamas

The criminal phase of the saga begins

After weeks of giving unauthorized media interviews and "apologizing" for technical errors, SBF is arrested by the Royal Bahamas Police Force at his $30 million luxury penthouse in the Albany resort. The arrest comes at the formal request of the U.S. Attorney’s Office for the Southern District of New York. The unsealed indictment contains eight criminal counts, including wire fraud on customers and lenders, money laundering, and conspiracy to violate campaign finance laws. The arrest prevents SBF from testifying before Congress, where he was scheduled to appear the following day. This marks the transition of the FTX story from a financial collapse to a high-stakes criminal prosecution.

→ www.reuters.com

Wed, Dec 21

Key Moment

SBF Extradited to the United States

Bankman-Fried agrees to face charges on American soil

SBF signs papers agreeing to be sent to the U.S. and is flown to New York in FBI custody. On the same night, it is revealed that Caroline Ellison and Gary Wang have already pleaded guilty and are cooperating with federal prosecutors.

→ www.bbc.com
Jan 2023

Tue, Jan 3

SBF Pleads Not Guilty

A defiant Bankman-Fried prepares for a legal battle

In a Manhattan federal court, Sam Bankman-Fried pleads not guilty to all criminal counts. Judge Lewis Kaplan sets a trial date for October, and SBF is released on a $250 million bond to his parents' home in Palo Alto.

→ www.reuters.com
Apr 2023

Wed, Apr 19

Key Moment

Taylor Swift Dodges $100 Million FTX Sponsorship

Swift avoided the scandal by asking about "unregistered securities"

It is revealed that Taylor Swift was one of the few celebrities to perform rigorous due diligence before the FTX collapse. Negotiating a $100 million deal that included tour sponsorship and NFT ticketing, Swift reportedly asked FTX: "Can you tell me that these are not unregistered securities?" When the exchange could not provide a satisfactory answer, the deal fell through. Her caution saved her from the massive class-action lawsuits targeting other celebrity promoters.

→ www.businessinsider.com
Aug 2023

Mon, Aug 7

Ryan Salame Pleads Guilty

Former FTX Digital Markets co-CEO flips

Ryan Salame pleads guilty to conspiracy to make unlawful political contributions and to operate an unlicensed money-transmitting business. He agrees to forfeit $1.5 billion in assets.

→ www.justice.gov

Fri, Aug 11

Key Moment

Judge Revokes Bankman-Fried’s Bail

Witness tampering allegations lead to jail time before trial

After SBF shared the private journals of Caroline Ellison with the media, Judge Lewis Kaplan revokes his $250 million bail, citing probable cause for witness tampering. SBF is sent to the Metropolitan Detention Center in Brooklyn.

→ www.reuters.com
Nov 2023

Thu, Nov 2

Key Moment

Jury Convicts Bankman-Fried on All Seven Counts

A swift verdict ends the "Trial of the Century"

After a month-long trial, the jury takes less than five hours to find SBF guilty on all counts of fraud and conspiracy. The verdict confirms that he knowingly used customer funds to fuel Alameda’s trades and luxury lifestyle.

→ www.reuters.com
Dec 2023

Fri, Dec 29

Prosecutors Drop Plans for a Second Trial

Focus shifts to a speedy sentencing

Federal prosecutors announce they will not pursue a second trial on additional charges (including foreign bribery), as much of the evidence was already presented and a second trial would "delay a timely resolution."

→ www.reuters.com
Mar 2024

Thu, Mar 28

Key Moment

Sam Bankman-Fried Sentenced to 25 Years

Judge Kaplan delivers a heavy blow to the "King of Crypto"

In a crowded Manhattan courtroom, Judge Lewis Kaplan sentences Sam Bankman-Fried to 300 months (25 years) in federal prison. The sentencing follows a trial where former friends and partners testified that SBF ordered them to commit crimes. During the hearing, Judge Kaplan rejects SBF’s claim that victims would eventually be paid back, stating that a thief who takes their loot to Las Vegas and wins is not entitled to a discount on their sentence. The judge highlights SBF’s "apparent lack of remorse" and his "performance" on the witness stand, which he characterized as evasive and dishonest. In addition to the prison term, a $11 billion forfeiture judgment is entered to help compensate the victims of the $8 billion fraud.

→ www.justice.gov
May 2024

Tue, May 28

Ryan Salame Sentenced to 7.5 Years

The political-money side of the case gets real prison time too

Despite being the tipster who initially warned Bahamian regulators, Salame is sentenced to 90 months in prison, a harsher sentence than many expected. Salame pluided guilty to unlawful political-contribution and unlicensed money-transmission conspiracies tied to FTX and Alameda.

→ www.justice.gov
Aug 2024

Sat, Aug 24

Key Moment

Caroline Ellison Sentenced to Two Years

Star witness receives jail time despite "extraordinary" cooperation

Caroline Ellison, former CEO of Alameda Research, is sentenced to two years in prison. The judge praised her cooperation but stated that the "enormity of this fraud" necessitated a prison sentence as a deterrent.

→ www.cnbc.com
Oct 2024

Mon, Oct 7

Key Moment

The $16 Billion Bankruptcy Plan Wins Approval

Victims to get "118% back," but controversy remains over 2022 prices

U.S. Bankruptcy Judge John Dorsey approves the FTX reorganization plan, which clears the way for the estate to begin distributing more than $14 billion in recovered assets. The plan promises that 98% of creditors will receive at least 118% of their allowed claims in cash. However, the "allowed claim" is based on the value of the cryptocurrency at the time of the bankruptcy filing in November 2022, when Bitcoin was trading at roughly $16,000. Because crypto prices skyrocketed in 2024, many creditors feel they are being robbed of the "bull market" gains. Despite hundreds of objections, the court rules that "dollarizing" the claims was the only legally feasible way to manage the massive liquidation.

→ www.reuters.com

Wed, Oct 30

Nishad Singh Avoids Prison Time

Judge cites "remarkable" cooperation and limited role in the core fraud

Former FTX Engineering Chief Nishad Singh is sentenced to three years of supervised release and no prison time, making him the first of the cooperating executives to fully avoid incarceration. While Singh pleaded guilty to six felony counts—including wire fraud and money laundering—U.S. District Judge Lewis Kaplan noted that his involvement was "much more limited" than that of SBF or Caroline Ellison. The court was particularly moved by the "extraordinary" speed and depth of Singh's cooperation. Prosecutors revealed that Singh met with them more than 24 times and provided evidence of criminal conduct that the government "may have never discovered" without him. This included detailed accounts of SBF’s excessive and reckless spending of customer funds on celebrity endorsements and political "straw donor" schemes. Defense attorneys successfully argued that Singh only became aware of the massive $8 billion hole in September 2022—just two months before the collapse—and was immediately suicidal upon learning the truth. In addition to the supervised release, Singh was ordered to forfeit $11.2 billion in assets, including his interest in a home and shares in the AI startup Anthropic.

→ www.bankingdive.com
Nov 2024

Sun, Nov 10

FTX Sues Binance Over 2021 Share Repurchase

Estate seeks to claw back funds from rival exchange

The FTX estate files a lawsuit against Binance and its former CEO Changpeng Zhao, seeking to recover $1.76 billion. The lawsuit alleges that SBF fraudulently used customer funds to buy back Binance’s stake in FTX in 2021.

→ www.claimsjournal.com

Wed, Nov 20

Gary Wang Avoids Prison Time

The last member of the inner circle is sentenced

Gary Wang, the FTX co-founder who wrote the code that allowed Alameda to steal customer funds, is sentenced to time served. Like Singh, his extensive cooperation was deemed critical to convicting SBF.

→ www.courthousenews.com
Jan 2025

Fri, Jan 3

FTX Chapter 11 Plan Becomes Effective

The estate officially exits bankruptcy mode to distribution mode

The reorganization plan becomes effective, setting the "Record Date" for distributions. This marks the transition from legal battling to the mechanical process of returning billions to victims.

→ www.prnewswire.com
Feb 2025

Tue, Feb 18

Key Moment

Initial Distributions Begin for Convenience Class

The first real money starts going back out

The first wave of payments begins for "Convenience Class" creditors (claims under $50,000). These users receive roughly 120% of their 2022 account value via Payoneer, BitGo, or Kraken.

→ www.prnewswire.com
Aug 2025

Sat, Aug 30

Third Distribution Begins

The estate moves beyond the smallest claims

FTX said its third distribution would send roughly $1.6 billion to allowed convenience and non-convenience classes, bringing cumulative recoveries materially higher across the main customer classes.

→ www.prnewswire.com
Dec 2025

Fri, Dec 19

The SEC secures final civil judgments against Ellison, Wang, and Singh

The civil enforcement chapter catches up with the criminal one

The SEC files final consent judgments against Ellison, Wang, and Singh. They are permanently banned from serving as officers or directors of public companies and face lifetime trading bans.

→ www.sec.gov
Jan 2026

Wed, Jan 21

Caroline Ellison Released 10 Months Early

Star witness leaves federal custody for a halfway house

Caroline Ellison is released from federal prison after serving roughly 14 months of her two-year sentence. Her early release is attributed to "good behavior" credits and the fulfillment of her cooperation agreement. During SBF's trial, Ellison was the prosecution’s star witness, providing the "smoking gun" evidence that SBF had personally directed the theft of customer funds. While her involvement in the fraud was extensive, Judge Kaplan had previously noted that her cooperation was "extraordinary" and that she was a "victim" of SBF’s manipulation in their personal relationship. She will serve the remainder of her term in a community-based halfway house before beginning three years of supervised release.

→ bitcoinmagazine.com
Mar 2026

Tue, Mar 31

Key Moment

$2.2 Billion Creditor Payout Commences

Fourth round of distributions brings total recovery to $10 billion

The FTX Recovery Trust begins its fourth distribution round, releasing $2.2 billion to eligible creditors. This brings the total amount returned to victims to approximately $10 billion. Many creditors remain frustrated that payouts are based on 2022 prices, missing the subsequent crypto bull market.

→ www.binance.com

End of timeline · 38 entries