As soon as the mud had settled, about US$8.7 billion was nonetheless unaccounted for, in keeping with the receiver appointed to handle the liquidation.
Federal prosecutor Damian Williams has accused Bankman-Fried and his associates of systematically diverting funds from FTX shoppers to prop up Alameda Analysis, but in addition wire fraud, securities and commodities fraud, and cash laundering.
Danielle Sassoon, an assistant US lawyer in Williams’ workplace, advised a listening to that the variety of victims of Bankman-Fried’s alleged actions might be “in extra of one million”.
SBF – as Bankman-Fried is thought – was extradited on the finish of December from the Bahamas, the place FTX was headquartered, and launched on a US$250 million bail upon his arrival in New York.
Pending the trial, Bankman-Fried was positioned below home arrest on the Silicon Valley dwelling of his mother and father, each professors at Stanford College.
However US District Decide Lewis Kaplan rescinded that call, ordering Bankman-Fried behind bars over alleged attempts at witness intimidation.
In line with prosecutors, whereas holed up at his mother and father’ dwelling, Bankman-Fried spoke usually to journalists and handed paperwork to The New York Occasions in an effort to change the testimony of Caroline Ellison, his ex-girlfriend and a former Alameda government.
Ellison has additionally been indicted within the case: She and three different former executives have pleaded responsible and agreed to cooperate with US authorities, which can show Bankman-Fried’s undoing in entrance of the jury.
His former colleagues are anticipated to take the stand within the courtroom – the place Bankman-Fried will seemingly admit egregious administration errors however no wrongdoing, and level the finger at Ellison.
“I did not ever attempt to commit fraud on anybody. I used to be shocked by what occurred this month,” a contrite Bankman-Fried advised an interviewer days after his firm’s collapse.