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.[3] Trial 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.[4][5][6] 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.[7] 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.[3]
2023 October 4 Trial day 2. During the initial hours of the trial, the United States Department of Justice (DOJ) accuses SBF of deliberately deceiving investors to enrich himself and expand his crypto empire. The DOJ alleges SBF used Alameda to "steal customers' funds" and influence politicians, focusing on claims that he misled customers, investors, and lenders about the safety of their funds. 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.[3] SBF parents Joe Bankman and Barbara Fried, arrive at court in New York.[8][9] Former FTX developer Adam Yedidia testifies.[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 5. Conclusion of Gary Wang's testimony, where he faces cross-examination by one of SBF’s lawyers, Christian Everdell. Wang discusses SBF’s consideration of shutting down Alameda, indicating a 30% chance according to SBF. He remains uncertain about the factors behind the FTX bank run, including the tweet by Binance CEO Changpeng Zhao or leaked financials.[13] Subsequently, Caroline Ellison, former CEO of Alameda and an ex-girlfriend of Bankman-Fried, takes the stand.[14] She admits guilt in misusing FTX user funds, attributing the actions to Bankman-Fried's setup of systems allowing Alameda to take $14 billion from the exchange.[15] Ellison reveals personal details about their relationship, SBF's presidential aspirations, and attempts to influence former President Donald Trump's reelection bid.[16] She also discloses Alameda's funding sources and her involvement in transactions to mitigate risks.[3]
2023 October 11 Trial day 6. As the sole witness[17], former CEO of Alameda Research, Caroline Ellison, provides crucial testimony during the trial, indicating that SBF directed employees to engage in fraudulent activities against FTX customers, which involved transferring billions of dollars to Alameda Research, a hedge fund affiliated with FTX. Ellison discloses that SBF specifically instructed her to create deceptive "alternative" balance sheets, which were presented to the cryptocurrency lender Genesis. These manipulated documents concealed a substantial sum of $10 billion, which had been borrowed from FTX customers. Ellison notes that her involvement in the scheme was under the explicit instruction of SBF, stating, "Sam told me to." Additionally, SBF purportedly contemplated raising funds from the Saudi Crown Prince, Mohammed bin Salman. Ellison also reveals SBF's directive to "keep selling BTC if it's over $20,000," prompting concerns about potential market manipulation allegations.[18] Ellison provides detailed information regarding the period leading up to the collapse of FTX in November 2022. Following a market downturn in May, lenders, notably Genesis Capital, demanded the repayment of loans, resulting in significant financial strain. Ellison, the former co-chief executive of Alameda Research, testifies that SBF directed her to devise "alternative ways" to present Alameda's financial data to lenders, concealing their substantial liability towards FTX. SBF's strategies for survival included seeking capital from Crown Prince Mohammed bin Salman of Saudi Arabia and advocating for regulatory measures against Binance, a competing cryptocurrency exchange.[3]
2023 October 12 Trial day 7. The cross-examination of Caroline Ellison continues in the Southern District Court of New York. The defense delves into the capital lent to Alameda by crypto lenders Genesis and Voyager, with Ellison stating that borrowed funds could be legally utilized for various purposes, including trading activities. Communication challenges with SBF, particularly after their breakup in April 2022, are highlighted, emphasizing how their strained relationship influenced Ellison's decisions at Alameda. She admits to cooperating extensively with prosecutors and discusses financial forecasts made during the bear market. Details about Alameda's bank accounts and fund redirection from FTX are also presented during the examination.[3]
2023 October 13 Trial day 8. During the trial, digital asset lender BlockFi CEO Zac Prince testifies that BlockFi's bankruptcy was caused by its association with FTX and Alameda Research. Prince reveals BlockFi had US$1.1 billion on FTX and blames FTX and Alameda's false balance sheets for BlockFi's collapse. He emphasizes BlockFi wouldn't have lent to Alameda if aware of FTX customer funds' involvement. BlockFi began lending to Alameda in 2020-2021, with loans exceeding $1 billion by May 2022. Prince highlights BlockFi's due diligence but admits losses due to Terra Luna's collapse. Prosecutors question customer awareness, contrasting BlockFi's transparency with FTX's practices. BlockFi's over-exposure to FTX Token (FTT) in 2021 also contributed to its financial distress.[19][20][21][22]
2023 October 16 Trial day 9. Former FTX engineering head Nishad Singh testifies that $1.3 billion of customer funds were used to build SBF's social capital and public image. Singh's testimony highlights the alleged misuse of customer funds and excessive spending on sponsorships, including celebrity endorsements. Singh reveals that FTX spent $1.3 billion on promotions, with millions sent to celebrities like Steph Curry, Kevin O'Leary, Tom Brady, and Larry David. Singh also describes SBF's involvement in political donations, including a complex system of loans and transfers, and his attempts to deceive regulators. Defense attorney Mark Cohen pushes to adjourn the trial to wait for additional Adderall medication for SBF, but the judge rules to continue the daily hearing schedule.[23][24][25][26]
2023 October 17 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.[27]
2023 October 18 Trial day 11. Prosecutors reveal SBF's profane messages criticizing regulators, undermining his cryptocurrency oversight image. The messages, sent to journalists including Vox and The Block, displayed his frustration with regulators, challenging his advocacy facade. Despite objections, the messages are admitted as evidence, portraying his true mindset during the alleged fraud. Separately, an expert witness disclosea a $9.3 billion money trail, exposing FTX's misuse of customer funds. Transactions involved investments, political donations, and real estate purchases. Prosecution's evidence strengthens claims of fraud, conspiracy, and money laundering.[28][29][30]
2023 October 19 Trial day 12. Former FTX General Counsel Can Sun testifies about a US$7 billion deficit in customer funds, expressing shock and revealing that SBF asked him for legal justifications. Sun also mentions Nishad Singh's emotional state before FTX's collapse. The defense focuses on FTX's terms of service, particularly margin trading, seeking to understand customer risk. Sun reveals SBF's attempt to find theoretical justifications for the missing funds, which Sun finds unsupported by facts. The session ends with Robert Boroujerdi stating Third Point wouldn't have invested if aware of Alameda's privileges.[31][32][33][34]
2023 October 26 Trial day 13. The courtroom witnesses extensive legal maneuvering and interruptions by District Court Judge Kaplan due to repeated questions, sidebars, and objections from both sides' attorneys. Prosecutors conclude their case with FBI Agent Mark Troiano's testimony, who examined over 300 Signal groups associated with SBF, most utilizing the auto-delete feature. Following the prosecution's conclusion, the defense calls witnesses, including Bahamas attorney Krystal Rolle, who discloses that FTX transferred all digital assets to the Bahamas regulator on the same day a court order was issued in November 2022. The defense also presents financial consultant Joseph Pimbley, who analyzed FTX's assets, revealing over $5.8 billion in accounts with trading enabled, excluding FTX entities or Alameda Research. However, prosecutors point out discrepancies in FTX's database accuracy during cross-examination. In a pre-trial hearing, SBF testifies in his defense, adopting a strategy of ignorance on specific matters, deflecting blame onto his legal advisors, and relying on internal lawyers and consultants. SBF's testimony features numerous "I don't recall" statements. Despite the defense's motion to dismiss the case, citing lack of evidence for fraud and money laundering, Judge Kaplan denies the motion.[35][36][37]
2023 October 27 Trial day 14. SBF testifies, blaming his former girlfriend and Alameda CEO, Caroline Ellison, for poor management in Alameda and accepting some mistakes while denying other claims made by colleagues. SBF denies defrauding anyone and discloses borrowing from various sources for Alameda. He clarifies the internal name for Alameda as 'Wireless Mouse,' refuting the term 'Sam's Crypto Trading Firm.' He explains FTX and Alameda's moves to Hong Kong and the Bahamas were due to a more flexible regulatory environment. SBF acknowledges aggressive FTX marketing funded by Alameda loans. He emphasizes Alameda's market maker role on FTX, blaming Ellison for lack of risk management focus. He claimed ignorance about the "Allow Negative" code and admitted to political donations funded by Alameda loans. Bankman-Fried cited Alameda's liquidity drop and internal solvency concerns, blaming Ellison again for not hedging bets and considering shutting down Alameda in 2022 due to the absence of proper management. The trial continues with cross-examination and a rebuttal case expected before the verdict.[38][39][40]
2023 October 30 Trial day 15. SBF displays a deep disdain for regulators, using profanities and expressing his negative views about a "subset of people" on Crypto Twitter. Despite his public support for crypto regulation, he admits to privately saying, "fuck regulators." SBF's defense attorneys try to shift blame onto Caroline Ellison, the former CEO of Alameda Research, claiming she admitted to inadequate hedging and offered to resign. SBF states he attempted to help Alameda by suggesting larger hedges and discussing a potential rescue package with private equity firm Apollo. Prosecutors question his credibility, presenting evidence of his involvement in trading decisions at Alameda and inconsistencies in his public statements. The trial is expected to conclude on October 31.[41][42][3]
2023 October 31 Trial day 16.
2023 November 1 Trial day 17.
2023 November 2 Trial day 18.
2023 November 6 Trial day 19.
2023 November 7 Trial day 20.
2023 November 8 Trial day 21.
2023 November 9 Trial day 22.

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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. ↑ 3.0 3.1 3.2 3.3 3.4 3.5 3.6 "Sam Bankman-Fried trial [Day 17] — latest update: Live coverage". Cointelegraph. 2 November 2023. Retrieved 9 November 2023. 
  4. ↑ "Fallen crypto king Sam Bankman-Fried faces 110 years in prison for alleged FTX fraud". The Independent. 2 October 2023. Retrieved 20 October 2023. 
  5. ↑ "Who is Sam Bankman-Fried, the former 'King of Crypto' on trial for fraud?". Sky News. Retrieved 20 October 2023. 
  6. ↑ "Sam Bankman-Fried: Trial of 'Crypto King' begins". BBC News. 3 October 2023. Retrieved 20 October 2023. 
  7. ↑ "FTX founder Sam Bankman-Fried's trial day 1: Recap". crypto.news. 3 October 2023. Retrieved 8 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. ↑ "FTX co-founder Wang discusses plea deal, knowledge of financial concepts at SBF trial". Cointelegraph. 10 October 2023. Retrieved 9 November 2023. 
  14. ↑ "Sam Bankman-Fried trial: former Alameda CEO Caroline Ellison to testify". Cointelegraph. 10 October 2023. Retrieved 9 November 2023. 
  15. ↑ "Caroline Ellison blames Sam Bankman-Fried for misuse of FTX user funds at trial". Cointelegraph. 10 October 2023. Retrieved 9 November 2023. 
  16. ↑ "Sam Bankman-Fried aspired to become US president, says Caroline Ellison". Cointelegraph. 10 October 2023. Retrieved 9 November 2023. 
  17. ↑ "Trial Day 6: Caroline Ellison Testimony Continues". WSJ. Retrieved 8 November 2023. 
  18. ↑ "Caroline Ellison Testifies in FTX Trial That SBF Told Her to "Keep Selling BTC If It's Over $20K"". Binance. Retrieved 22 October 2023. 
  19. ↑ "SBF Trial: Crypto Lender BlockFi Believed Alameda Was Solvent Given Balance Sheet It Was Shown, CEO Testifies". Yahoo Finance. 13 October 2023. Retrieved 9 November 2023. 
  20. ↑ De, Helene Braun and Nikhilesh (13 October 2023). "SBF Trial: Crypto Lender BlockFi Believed Alameda Was Solvent Given Balance Sheet It Was Shown, CEO Testifies". www.coindesk.com. Retrieved 9 November 2023. 
  21. ↑ "BlockFi's Lending Relationship With FTX and Alameda Research Hastened Its Downfall". inc.com. Retrieved 9 November 2023. 
  22. ↑ "BlockFi CEO points finger at Alameda, FTX for collapse of crypto lender during testimony at SBF trial". The Block. Retrieved 9 November 2023. 
  23. ↑ "SBF trial day 9: FTX's founder spent $1.3b on celebrity endorsements". crypto.news. 16 October 2023. Retrieved 9 November 2023. 
  24. ↑ "SBF Trial Day 9: FTX's Founder Spent $1.3b on Celebrity Endorsements". Binance. Retrieved 9 November 2023. 
  25. ↑ Cirrone, Katherine Ross,Casey Wagner,James (16 October 2023). "Nishad Singh's respect for 'formidable' SBF 'eroded' over time: SBF trial live updates". Blockworks. Retrieved 9 November 2023. 
  26. ↑ "SBF Trial, Day 9: Nishad Singh Describes Former FTX CEO as a Bully and Big Spender". Unchained Crypto. Retrieved 9 November 2023. 
  27. ↑ "FTX founder Sam Bankman-Fried's trial day 10: Recap". crypto.news. 17 October 2023. Retrieved 8 November 2023. 
  28. ↑ "FTX Founder Sam Bankman-Fried's Trial Day 11: Recap". Binance. Retrieved 9 November 2023. 
  29. ↑ "SBF trial day 11: financial forensic report exposes FTX $9.3b money trail". crypto.news. 18 October 2023. Retrieved 9 November 2023. 
  30. ↑ Cohen, Luc; Cohen, Luc (18 October 2023). "Sam Bankman-Fried trial jury sees his profane messages about regulators". Reuters. Retrieved 9 November 2023. 
  31. ↑ "Sam Bankman-Fried Trial Day 12: a $7 Billion Hole in FTX's Balance". Binance. Retrieved 9 November 2023. 
  32. ↑ "SBF Trial, Day 12: Former FTX General Counsel Speaks Out Against SBF". Unchained Crypto. Retrieved 9 November 2023. 
  33. ↑ Cirrone, Katherine Ross,Casey Wagner,James (19 October 2023). "Former FTX lawyer 'shocked' by missing $7B: SBF trial live updates". Blockworks. Retrieved 9 November 2023. 
  34. ↑ Cohen, Luc; Cohen, Luc (19 October 2023). "Sam Bankman-Fried sought 'justifications' for missing funds, lawyer testifies". Reuters. Retrieved 9 November 2023. 
  35. ↑ "SBF trial day 13: FTX founder claims ignorance in mock testimony". crypto.news. 26 October 2023. Retrieved 9 November 2023. 
  36. ↑ "SBF Trial Day 13: FTX Founder Claims Ignorance in Mock Testimony". Binance (in العربية). Retrieved 9 November 2023. 
  37. ↑ "SBF Trial, Day 13: Before Judge, Former FTX CEO Sam Bankman-Fried Gives Few Straight Answers". Unchained Crypto. Retrieved 9 November 2023. 
  38. ↑ "SBF trial day 14: FTX's Bankman-Fried blames Alameda's Ellison for absent hedging". crypto.news. 27 October 2023. Retrieved 9 November 2023. 
  39. ↑ De, Sam Kessler, Danny Nelson, Helene Braun and Nikhilesh (27 October 2023). "Sam Bankman-Fried Throws Caroline Ellison Under Bus in Testimony". www.coindesk.com. Retrieved 9 November 2023. 
  40. ↑ "FTX founder Sam Bankman-Fried takes the stand: Recap of trial day 14". crypto.news. 28 October 2023. Retrieved 9 November 2023. 
  41. ↑ Morrow, From CNN's Allison (30 October 2023). "FTX daily withdrawal surged to $4 billion after tweet from crypto rival, Binance". CNN. Retrieved 9 November 2023. 
  42. ↑ "SBF trial day 15: "I was trying to help" FTX founder claims on third day of testimony". crypto.news. 30 October 2023. Retrieved 9 November 2023. 
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