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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

38

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20

Key moments

1

Followers

May 2

Updated

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May 2019

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
Nov 2022

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
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

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

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 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

End of timeline · 15 entries