Major Controversies Surrounding Sam Bankman-Fried: A Detailed Timeline
Controversies are a part of history. Explore the biggest scandals linked to Sam Bankman-Fried.
Sam Bankman-Fried, or SBF, is an American entrepreneur and the founder of the FTX cryptocurrency exchange. Once hailed as a crypto prodigy, FTX grew into a global platform with numerous international affiliates. Bankman-Fried reached considerable wealth, becoming one of the richest Americans according to Forbes. However, he was subsequently convicted of fraud and other related financial crimes in November 2023, marking a significant downfall from his previous status.
December 8, 2021: Testimony Before Congress
On December 8, 2021, Sam Bankman-Fried testified before the Committee on Financial Services regarding cryptocurrency industry regulation.
February 2022: Bankman-Fried's Political Contributions and Crypto Regulation
In February 2022, Bankman-Fried stated his political contributions were not aimed at influencing policy goals for the crypto ecosystem, while FTX circulated suggestions to policymakers. He preferred the CFTC to take a larger role in regulating the crypto industry.
May 2022: Planned Political Spending for 2024 Election
In May 2022, Bankman-Fried stated he planned to spend "north of $100 million" in the 2024 presidential election, with a "soft ceiling" of $1 billion.
October 2022: Walk Back of Spending Pledge
In October 2022, Bankman-Fried walked back his pledged spending for the 2024 election, calling it a "dumb quote on my part."
October 2022: Donation to Beto O'Rourke
In October 2022, Bankman-Fried's campaign donated $1 million to Beto O'Rourke's campaign.
November 8, 2022: Bankman-Fried Tweets "FTX is fine. Assets are fine."
On November 8, 2022, Sam Bankman-Fried tweeted "FTX is fine. Assets are fine." However, this statement was later deemed false by an FTX executive, who clarified that Bankman-Fried was careful to talk about solvency rather than liquidity.
November 11, 2022: FTX and Alameda Research Declare Bankruptcy
On November 11, 2022, FTX, Alameda Research, and over 130 associated legal entities declared bankruptcy. Reports indicated Bankman-Fried had transferred billions from FTX to Alameda without disclosure.
November 11, 2022: Bankman-Fried Resigns as CEO of FTX
On November 11, 2022, Sam Bankman-Fried resigned as CEO of FTX and was replaced by John J. Ray III. FTX and related entities filed for bankruptcy in Delaware on the same day.
November 2022: Binance Announces Sale of FTT Holdings
In November 2022, Binance CEO Changpeng Zhao announced his firm's intention to sell its holdings of FTT, FTX's token, triggering a spike in customer withdrawals from FTX.
November 2022: Bankman-Fried Claims Confirmation of Alameda's Misuse of Funds
In November 2022, Sam Bankman-Fried claimed he confirmed Alameda Research had taken $8 billion in customer funds, which was not reflected in Alameda's main account on FTX.
November 2022: Interview on Crypto Regulation
In November 2022, Sam Bankman-Fried stated in an interview that his advocacy for crypto regulation was insincere and "just PR", and that ethics were "mostly a front".
November 2022: FTX Bankruptcy Filing
In November 2022, evidence of potential fraud at FTX surfaced, leading to a rapid withdrawal of assets by depositors and forcing the company into bankruptcy.
November 2022: Disclosure of Borrowing for Robinhood Stock Purchase
In a November 2022 affidavit, Sam Bankman-Fried stated that he and FTX cofounder Gary Wang borrowed over $546 million from Alameda Research to finance Emergent Fidelity Technologies' purchase of Robinhood Markets stock.
December 12, 2022: Arrest and Extradition
On December 12, 2022, Sam Bankman-Fried was arrested in the Bahamas and subsequently extradited to the United States to face seven criminal charges.
December 2022: FTX Begins Efforts to "Claw Back" Donations
In December 2022, FTX's new management commenced efforts to "claw back" donations made to politicians, celebrities, and charities as part of its bankruptcy proceedings.
December 2022: Prepared Testimony to Congress
In December 2022, Sam Bankman-Fried prepared to testify before the House Financial Services Committee, maintaining that FTX was solvent and implying that the bankruptcy process was being mismanaged for excessive fees, though he ultimately did not testify.
December 2022: Extradition from the Bahamas
In December 2022, Sam Bankman-Fried was extradited from the Bahamas, leading to federal prosecutors bringing additional charges.
December 2022: Removal from Giving Pledge List
In December 2022, following his arrest, Sam Bankman-Fried's name was removed from the Giving Pledge list's website.
January 3, 2023: Plea of "Not Guilty"
On January 3, 2023, Sam Bankman-Fried pled "not guilty" to fraud and other charges.
February 1, 2023: Tightening of Bail Conditions
On February 1, 2023, the judge tightened Sam Bankman-Fried's bail conditions, forbidding him from contacting current or former FTX employees without attorneys present, hinting at possible jailing pending trial.
February 23, 2023: Announcement of Additional Criminal Charges
On February 23, 2023, four additional criminal charges were levied against Sam Bankman-Fried, primarily focused on illegal political donations.
March 2023: Indictment for Transfers to Chinese Officials
In March 2023, an indictment accused Sam Bankman-Fried of directing the transfer of cryptocurrency to Chinese government officials to unfreeze Alameda Research accounts.
July 2023: Allegations of Considering Purchase of Nauru
In July 2023, allegations surfaced that Sam Bankman-Fried had considered "purchasing" the island country of Nauru to use as a bunker, a project described as misguided and dystopian.
July 20, 2023: Insiders Avoidance Complaint Filed
On July 20, 2023, an Insiders Avoidance Complaint was filed against Bankman-Fried and three former FTX/Alameda senior executives seeking to recover "hundreds of millions of dollars that Defendants misappropriated."
July 26, 2023: Witness Tampering Allegations
On July 26, 2023, prosecutors alleged witness tampering after Bankman-Fried gave a reporter personal writings of former Alameda Research CEO Caroline Ellison.
August 11, 2023: Bankman-Fried's Bail Revoked
On August 11, 2023, Judge Kaplan revoked Bankman-Fried's bail, after concluding that witness tampering had likely occurred. Bankman-Fried was then remanded into custody.
October 3, 2023: Start of Trial
On October 3, 2023, the trial of Sam Bankman-Fried began in Manhattan, where he faced seven counts of fraud and conspiracy.
October 2023: Ellison Testifies Against Bankman-Fried
In October 2023, Caroline Ellison testified against Bankman-Fried in court, claiming his hairstyle and clothes were part of a "well calculated" image.
November 2, 2023: Bankman-Fried Found Guilty on All Counts
On November 2, 2023, the jury found Bankman-Fried guilty on all seven counts. The sentencing hearing was scheduled for March 28, 2024.
November 2023: Conviction of Fraud and Related Crimes
In November 2023, Sam Bankman-Fried was convicted of fraud and related crimes, marking a significant downturn in his career and reputation.
December 30, 2023: Prosecutors Announce No Second Trial
On December 30, 2023, prosecutors announced they would not proceed with a second trial for Sam Bankman-Fried, citing the "strong public interest" to promptly resolve the case.
2023: Inclusion on Forbes Hall of Shame
In 2023, Sam Bankman-Fried was included on Forbes' Hall of Shame list, a retraction of his earlier inclusion on the 30 Under 30 list.
March 2024: Second Trial Scheduled
In early March 2024, a second trial was originally scheduled for Sam Bankman-Fried on five charges, including bank fraud and bribery.
March 28, 2024: Sentencing
On March 28, 2024, Sam Bankman-Fried was sentenced to 25 years in prison and ordered to forfeit $11 billion after being convicted on seven counts of fraud, conspiracy, and money laundering.
April 11, 2024: Bankman-Fried Appeals Conviction and Sentence
On April 11, 2024, Sam Bankman-Fried appealed his conviction and the 25-year prison sentence.
2024: Investigation of Legality of Paying Donald Trump Not to Run
In 2024, it was revealed that Bankman-Fried had investigated the legality of directly paying Donald Trump not to run for president, with a potential figure of $5 billion discussed.
