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.

by Timelined

Curator · 2 timelines

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

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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

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

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

Nov 2022

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

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

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

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

End of timeline · 11 entries