Estimated losses: Over $7 billion
The crypto change run by 30-year-old Sam Bankman-Fried collapsed in November 2022 after a liquidity crunch uncovered that the agency, as soon as valued at $32 billion, had been utilizing buyer deposits to fund dangerous bets via a hedge fund additionally managed by Bankman-Fried.
FTX is now in chapter proceedings, and Bankman-Fried has been arrested within the Bahamas and faces extradition to the US on felony prices of conspiracy to commit wire fraud, commodities fraud, securities fraud and cash laundering. He faces as much as 115 years in jail. His hedge fund, Alameda Analysis, faces separate accusations associated to doubtlessly unlawful marketing campaign donations.
The scandal has rocked the broader world of crypto investments, sparking dozens of investor lawsuits and pushing down the worth of digital belongings. The Senate Banking Committee held a listening to to look at the case and think about additional rules on the crypto trade.
In that listening to, John J. Ray, the CEO introduced in to exchange Bankman-Fried and unwind the corporate stated it was a case of “old school embezzlement.”
“That is simply taking cash out of your prospects and utilizing it on your personal goal,” he added. “Not subtle in any respect.”
Founder, Sam Bankman-Fried (Picture: Bloomberg)