In 2022, FTX crypto exchange filed for bankruptcy, sending shockwaves through the crypto community. Legal actions against its former management have persisted. Nearly a year later, founder Sam Bankman-Fried faces an impending trial.
The trial of the disgraced businessman will begin on October 3 and will last at least 21 days until November 9 inclusive. At least until sentencing, Bankman-Fried will be held in custody in the Brooklyn prison where he was sent on August 11.
Sam is accused of seven counts of fraud. According to investigators, the former head of the trading platform illegally seized the assets of FTX clients. For the scams committed, he faces a penalty of imprisonment for a term of 110 years.
Who is affected by the FTX collapse?
Many companies in which FTX and Alameda Research invested suffered catastrophic business consequences. The collapse of FTX and the loss of Sam’s reputation was a tragedy for the industry not only because of the multi-billion dollar losses. Bankman-Fried was a prominent figure in US political circles, speaking in Congress and sponsoring political campaigns. The collapse of its exchange significantly damaged the reputation of cryptocurrencies in the eyes of regulators.
Because authorities have accused Bankman-Fried of misusing customer money, other centralized exchanges rushed to release proof of reserves to ensure that users’ funds were safe.
New management is trying to get customers’ money back
FTX
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Author: Anna Kharitonova
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