Timeline of FTX trial

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This is a timeline of FTX trial.

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Year Month and date Event type Details
2022 November Prelude FTX faces a crisis after revelations on November 2 that Alameda Research held a significant amount of FTX Token (FTT), raising questions about their connection. On November 6, Binance CEO Changpeng Zhao declares the liquidation of Binance's $2.1 billion FTT holdings, rejecting Ellison's offer to buy them.[1] Concerns sparked a rush on FTX. SBF reassures on Twitter, defending the exchange's assets and blaming a competitor for rumors. By November 8, FTT's price plummets from $22 to $15.40 amidst the turmoil.[2]
2022 December Prelude FTX is initially been arrested in the Bahamas on December 12, following charges filed against him by the U.S. government. He is arrested in the United States upon his return from the Bahamas. Additionally, FTX co-founder Gary Wang and Alameda Research CEO Caroline Ellison, agree to plead guilty in connection with the case.
2023 October 3 Trial day 1 against SBF begins in New York, where he faces seven charges of wire fraud and money laundering. While he denies the charges, he is tried on accusations of extravagant spending and fraudulent use of customer funds.[3][4][5] Senior District Judge Lewis A. Kaplan oversees the trial, with Assistant U.S. Attorney Nicolas Roos heading the prosecution, and Mark Cohen leading the defense. The trial begins with jury selection, presided over by Kaplan, who indicates that the case might conclude sooner than expected, potentially within a couple of weeks.[6] The defense portrays SBF as a young entrepreneur who made unsuccessful business decisions. They deny secret transactions between Alameda and FTX, emphasizing that all transactions were legitimate. Witnesses highlight FTX's marketing campaigns to establish itself as a trustworthy crypto investment platform.[7]
2023 October 4 SBF parents Joe Bankman and Barbara Fried, arrive at court in New York.[8]
2023 October 4 Trial day 2 commences with jury selection expected to conclude, followed by opening statements from the prosecution and defense. Witnesses, including Caroline Ellison, SBF's father Joseph Bankman, and brother Gabriel Bankman-Fried, are expected to testify. Anthony Scaramucci, a former Trump White House communications director, is named as a possible witness. SBF faces seven federal counts of fraud and conspiracy related to the collapse of FTX, accused of misleading investors and stealing customer funds.[9] Former FTX developer Adam Yedidia testifies at Manhattan Federal Court.[10]
2023 October 5 Trial day 3. The prosecution cross-examines Adam Yedidia, revealing an $8 billion liability from Alameda to FTX. Yedidia, FTX developer and Bankman-Fried's associate, discloses that FTX had deposited user funds into an Alameda account due to banking issues, forming an $8 billion obligation. Despite Yedidia's concerns, Bankman-Fried assured him of resolving the debt. Gary Wang, FTX and Alameda co-founder, admits to wire fraud and securities fraud, highlighting Alameda's special benefits, including a $65 billion credit line. The defense stresses FTX's rapid expansion and Bankman-Fried's heavy workload during the bullish market of 2021.[11]
2023 October 6 Trial day 4. It is revealed that Alameda Research had an $11 billion debt to FTX. Bankman-Fried sought to have Alameda return the borrowed money but faced challenges due to their deeply intertwined financial situation. Alameda, granted special privileges, operated as an FTX market maker. Bankman-Fried attempted to shut down Alameda before their close connection with FTX was exposed, exploring alternatives like Modulo, a firm he partially owned. FTX faced financial instability, leading to its bankruptcy declaration. Witnesses like Gary Wang testifie about these financial intricacies, with cross-examinations causing courtroom tension.[12]
2023 October 10 Trial day 6. As the sole witness[13], former Alameda Research CEO Caroline Ellison testifies that SBF directed employees to defraud FTX customers by transferring billions of dollars to Alameda Research, a sister hedge fund. Ellison discloses that SBF instructed her to create "alternative" balance sheets to present to crypto lender Genesis, concealing $10 billion in borrowed customer money. Ellison expresses her constant dread, participating in the scheme because "Sam told me to." SBF allegedly considered raising funds from Saudi Crown Prince Mohammed bin Salman. Ellison also reveals SBF's directive to "keep selling BTC if it's over $20,000," raising concerns about market manipulation allegations.[14]
2023 Trial day 7. Caroline Ellison is cross-examined by the defense. She admits having found SBF correct in some of his statements and also saw him as ambitious., Two other witnesses, Christian Drappi, a software engineer at Alameda, and Zac Prince from bankrupt crypto exchange BlockFi, also testify during the proceedings.
2023 Trial day 10. Former Senior Engineer Nishad Singh testifies about SBF's lavish spending and large-scale investments from FTX's funds. Singh reveals that he received bonuses and borrowed significant amounts, intending to make donations to charity, but those transactions never occurred. The defense cross-examines Singh, emphasizing discrepancies in financial records and pointing out missing funds in the balance sheet. Additionally, pictures of SBF socializing with celebrities and political leaders are presented to the jury. The trial continues with detailed scrutiny of financial transactions and Bankman-Fried's expenditures.[15]

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References

  1. ↑ "Binance to liquidate its entire FTX Token holdings after 'recent revelations'". Cointelegraph. 7 November 2022. Retrieved 9 November 2023. 
  2. ↑ "FTX Token price risks 30% plunge as a 23M FTT 'part' moves to Binance". Cointelegraph. 7 November 2022. Retrieved 9 November 2023. 
  3. ↑ "Fallen crypto king Sam Bankman-Fried faces 110 years in prison for alleged FTX fraud". The Independent. 2 October 2023. Retrieved 20 October 2023. 
  4. ↑ "Who is Sam Bankman-Fried, the former 'King of Crypto' on trial for fraud?". Sky News. Retrieved 20 October 2023. 
  5. ↑ "Sam Bankman-Fried: Trial of 'Crypto King' begins". BBC News. 3 October 2023. Retrieved 20 October 2023. 
  6. ↑ "FTX founder Sam Bankman-Fried's trial day 1: Recap". crypto.news. 3 October 2023. Retrieved 8 November 2023. 
  7. ↑ "Sam Bankman-Fried trial [Day 17] — latest update: Live coverage". Cointelegraph. 2 November 2023. Retrieved 9 November 2023. 
  8. ↑ Morrow, Allison (4 October 2023). "Sam Bankman-Fried's crypto empire was 'built on lies,' US prosecutor says | CNN Business". CNN. Retrieved 20 October 2023. 
  9. ↑ Dumas, Breck (4 October 2023). "Sam Bankman-Fried trial Day 2: What to expect and who could testify". FOXBusiness. Retrieved 8 November 2023. 
  10. ↑ Neumeister, Larry. "FTX co-founder testifies against Bankman-Fried, says they committed crimes". www.timesofisrael.com. Retrieved 20 October 2023. 
  11. ↑ "Sam Bankman-Fried's Trial Day 3". Binance. Retrieved 22 October 2023. 
  12. ↑ Wagner, Katherine Ross,James Cirrone,Casey (6 October 2023). "Sam Bankman-Fried trial updates: FTX backstop fund was 'fake,' Wang testifies". Blockworks. Retrieved 22 October 2023. 
  13. ↑ "Trial Day 6: Caroline Ellison Testimony Continues". WSJ. Retrieved 8 November 2023. 
  14. ↑ "Caroline Ellison Testifies in FTX Trial That SBF Told Her to "Keep Selling BTC If It's Over $20K"". Binance. Retrieved 22 October 2023. 
  15. ↑ "FTX founder Sam Bankman-Fried's trial day 10: Recap". crypto.news. 17 October 2023. Retrieved 8 November 2023. 
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