FTX, as soon as among the many largest cryptocurrency exchanges on the planet, mentioned this week that just about all of its clients will obtain the cash again that they’re owed, two years after its monumental collapse.
FTX mentioned in a courtroom submitting late Tuesday that it owes about $11.2 billion to its collectors. The trade estimates that it has between $14.5 billion and $16.3 billion to distribute to them.
Here’s a timeline of what led as much as this week’s announcement after an implosion at FTX kicked off what many had anticipated to grow to be a “crypto winter.”
2022
Nov. 2: Coindesk studies Alameda Reseach, Bankman-Fried’s cryptocurrency buying and selling agency, holds a considerable amount of FTT, a token issued by FTX, suggesting the funds of the 2 are intertwined and Alameda faces a cash crunch. The report spooks contributors within the crypto market.
Nov. 6: Rival cryptocurrency trade Binance declares that the firm plans to sell all its holdings in FTT. The value of FTT tanks.
Nov. 8: Binance founder and CEO Changpeng Zhao mentioned his firm had signed a letter of intent to purchase FTX as a result of the smaller trade was experiencing a “important liquidity crunch.” That deal can be contingent, nevertheless, on a take a look at the books at FTX. The value for bitcoin tumbles 13%.
Nov. 9: Cryptocurrency costs plunge and after getting a better take a look at the funds of FTX, Binance retreated and mentioned there can be no acquisition. “To start with, our hope was to have the ability to help FTX’s clients to supply liquidity, however the points are past our management or potential to assist,” Binance mentioned in a press release. Bitcoin costs drop one other 14%.
Nov. 10: Cryptocurrency lender BlockFi introduced it’s “not capable of do enterprise as standard” and was pausing consumer withdrawals because of FTX’s implosion.
Nov. 11: FTX recordsdata for Chapter 11 and Bankman-Fried resigns. John Ray III, a long-time chapter litigator who’s greatest identified for having to scrub up the mess made after the collapse of Enron, is called the brand new CEO.
In its chapter submitting, FTX listed greater than 130 affiliated corporations across the globe. The corporate valued its belongings between $10 billion to $50 billion, with an identical estimate for its liabilities. Bitcoin falls 10%.
Nov. 17: Ray offers a damning description of FTX’s operations below Bankman-Fried, from an absence of safety controls to enterprise funds getting used to purchase workers properties and luxuries.
Nov. 30: As a part of a media blitz, Bankman-Fried tells New York Time’s Andrew Ross-Sorkin, “Look, I screwed up,” and didn’t knowingly misuse shoppers’ funds.
Dec. 12: Bankman-Fried is arrested within the Bahamas, the place FTX is headquartered.
Dec. 13: The U.S. authorities prices Bankman-Fried with a number of economic crimes, alleging he deliberately deceived clients and traders to counterpoint himself and others, whereas enjoying a central position within the firm’s multibillion-dollar collapse.
Federal prosecutors mentioned Bankman-Fried devised “a scheme and artifice to defraud” FTX’s clients and traders starting the 12 months it was based. He illegally diverted their cash to cowl bills, money owed and dangerous trades at Alameda Analysis, and to make lavish actual property purchases and enormous political donations, prosecutors mentioned in a 13-page indictment.
Dec. 22: Bankman-Fried’s dad and mom agreed to signal a $250 million bond and maintain him at their California residence whereas he awaits trial.
2023
August 11: Decide revoked Bankman-Fried’s bail and despatched him to jail after concluding he had repeatedly tried to affect witnesses in opposition to him.
Oct. 3: Jury choice started for the trial.
Oct. 27: Bankman-Fried took the stand in his trial. He once more acknowledged failures however denied defrauding anybody.
Nov. 3: Bankman-Fried is convicted of fraud for stealing not less than $10 billion from clients and traders.
2024
March 28: Bankman-Fried is sentenced to 25 years in jail. Bitcoin has roared again from an enormous sell-off throughout the scandal. Costs are up almost 70%.
April 30: Changpeng Zhao, the founding father of Binance, is sentenced to 4 months in jail for wanting the opposite approach as criminals used the platform to maneuver cash related to little one intercourse abuse, drug trafficking and terrorism.
Might 8: FTX says that just about all of its clients will obtain the cash again that they’re owed, two years after the cryptocurrency trade imploded, and a few will get greater than that.