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Tag: FTX

April 16, 2025

Startup on Trial: The Fall of FTX – How Sam Bankman-Fried’s Empire Exploited Compliance Gaps and Ended in Catastrophe

FTX, once hailed as the gold standard of crypto exchanges, imploded in November 2022, revealing a multi-billion-dollar fraud orchestrated by founder Sam Bankman-Fried (SBF). What began as a scrappy crypto derivatives exchange turned into a house of cards built on customer fund misuse, opaque affiliate structures, and a startling absence of regulatory oversight

March 7, 2025

From Crypto King to Prison Chess: SBF’s Defiant Rewrite of the FTX Saga

In a remote interview with Tucker Carlson on March 5, 2025, Sam Bankman-Fried (SBF), the convicted FTX founder, reframed his $10 billion fraud as a mere liquidity crisis, denying criminal intent while playing chess with Sean 'Diddy' Combs in prison. As he hints at GOP leanings and a potential pardon, SBF’s narrative sparks debate: a bid for redemption or a refusal to face the fallout?

November 11, 2024

FTX Estate Sues Binance and Former CEO Zhao for $1.8 Billion Over “Fraudulent” Share Deal

It seems that the bankruptcy of the US crypto exchange FTX will continue to cause ripples across the crypto scene. In a high-stakes lawsuit, the FTX estate is targeting Binance and its former CEO, Changpeng Zhao (CZ), seeking $1.8 billion over a controversial 2021 share buyback deal. Allegations include claims of a “constructive fraudulent transfer” and accusations of tweets that allegedly accelerated FTX's collapse.

November 8, 2024

FTX Co-Founder Gary Wang Pleads for Freedom, Citing Role as Key Witness Against Bankman-Fried

Gary Wang, co-founder of FTX, has requested a non-custodial sentence in a court memo submitted on November 6th, emphasizing his cooperation as a key witness in the U.S. v. Sam Bankman-Fried case. Wang argues his minimal involvement in FTX’s collapse and his substantial assistance to prosecutors justify leniency. He will be sentenced on Nov. 20 after pleading guilty.

November 6, 2024

FTX Pursues $98.8 Million Recovery from Ex-Chief Ryan Salame

FTX Trading Ltd. has filed a lawsuit against Ryan Salame, former head of FTX Digital Markets, seeking the recovery of $98.8 million allegedly misappropriated in the lead-up to the exchange's collapse. Accusations against Salame include using customer funds to finance a lavish lifestyle and political contributions. He was sentenced to 7.5 years (90 months) in prison for his role in the FTX scandal.

October 29, 2024

Bankrupt Crypto Exchange FTX Settles Suit Against Crypto Firm Bybit for $228 Million!

The legal dispute between the collapsed U.S. crypto exchange FTX and Dubai-based Bybit has recently reached a significant milestone with a settlement agreement worth $228 million. Here's an overview of the background, context, and latest developments. The settlement comes just in time for the expected bull run in the crypto segment.

September 27, 2024

Plaintiffs Lawyers of FTX Clients Lawyers Settle Feud With FTX Estate!

FTX was a major U.S. crypto exchange that collapsed in November 2022 amid allegations of fraud and misuse of customer funds. Plaintiffs' lawyers in the FTX litigation in Miami federal court have reached a deal with lawyers for the bankrupt company, resolving a fight that erupted earlier this year over who owns the right to sue on behalf of customers of the crypto exchange.

September 25, 2024

Caroline Ellison Sentenced to Two Years for Role in FTX, The ‘Greatest Financial Fraud’ In U.S. History!

Caroline Ellison, 29, a central figure in the scandal around the collapsed U.S. crypto exchange FTX, has been sentenced to two years in prison despite her substantial cooperation with prosecutors. The former FTX CEO Sam Bankman-Fried (SBF) has received a 25-year prison time. Her case emphasizes that even those who assist law enforcement may still face incarceration in cases involving large-scale fraud.

Auditors
SEC

September 18, 2024

Audit Firm Prager Metis Settles SEC Charges for Negligence in FTX Audits!

Auditor firm Prager Metis’s negligence in auditing FTX stripped investors of crucial protections, ultimately exposing them to the collapse of one of the biggest crypto frauds in history. The firm agreed to pay $1.95 million to settle charges related to the FTX audits and separate auditor independence violations. The U.S. SEC’s action underscores auditors' vital role as financial gatekeepers.

September 15, 2024

Timing is Everything: FTX Founder Sam Bankman-Fried Fights Conviction as FTX Estate Sits on Billions!

Sam Bankman-Fried (SBF), the convicted former CEO of FTX, is seeking a new trial. He claims that the judge presiding over his case showed bias and repeatedly ridiculed him in front of the jury. His legal team argues that Judge Lewis A. Kaplan's conduct, including alleged disapproving facial expressions and frequent interruptions, violated SBF's constitutional rights to a fair trial. This appeal adds a new twist to the high-profile case surrounding the collapse of the crypto exchange FTX.

September 12, 2024

Crypto Crime Case FTX: Caroline Ellison Seeks No Jail Time for Role in FTX Fraud

Caroline Ellison, a former top executive in the collapsed crypto exchange FTX and former girlfriend of FTX CEO Sam Bankman-Fried, is seeking no prison time at her sentencing later this month. The lawyers cited her immediate and extensive cooperation with U.S. authorities when FTX collapsed in November 2022 and noted that the court's Probation Department recommended that she serve no prison time.

September 4, 2024

SEC and Bankrupt Crypto Exchange FTX in Dispute Over Repayment Plan

Bankrupt cryptocurrency exchange FTX has proposed a plan to repay its creditors using U.S. dollar-pegged stablecoins, aiming to distribute between $14.5 billion to $16.3 billion—about $5.3 billion more than the initial owed amount. However, the U.S. Securities and Exchange Commission (SEC) may oppose this plan and has indicated it reserves the right to challenge the proposed transactions, Benzinga reports.

Despite New Crypto Friendlyness: No Settlement Between U.S. CFTC And KuCoin?

A planned settlement between the U.S.CFTC and crypto exchange KuCoin is now in limbo due to a reported policy shift within the CFTC. This change is attributed to the Trump administration’s new approach, which deprioritizes enforcement actions against crypto companies. As a result, a CFTC attorney said that it is "unlikely that such authorization will be granted in the near term" regarding the settlement approval.

SEC’s New Era: Paul Atkins Sworn In—Will Crypto Finally Get the Regulatory Clarity It Deserves?

The U.S. Securities and Exchange Commission (SEC) has entered a new chapter with the swearing-in of Paul S. Atkins as its 34th Chairman, a move widely anticipated to mark a dramatic pivot in how the agency approaches crypto and DeFi regulation. For years, the financial industry—especially the burgeoning digital asset sector—has bristled under the SEC’s “Regulation by Enforcement” strategy.

Crypto Mogul Changpeng Zhao – Fallen, Rich, and Rising Again?

As spring 2025 blooms and Easter’s themes of rebirth fill the air, Changpeng Zhao emerges as one of the most controversial figures of startup mythology: a man who fell spectacularly, paid a price—then rose again, wealthier and louder than ever. Once the almighty architect of Binance, CZ now resides in Dubai with a net worth that Forbes estimates at $63 billion.

Prison Update: Sam Bankman-Fried Transferred to Low-Security Federal Prison in Los Angeles!

Sam Bankman-Fried (SBF), the founder of the now-defunct cryptocurrency exchange FTX, has been transferred to the Federal Correctional Institution (FCI) Terminal Island in Los Angeles, California. This low-security facility is known for housing non-violent offenders and has previously held notable inmates such as Ramesh "Sunny" Balwani, former COO of Theranos.

Startup on Trial: Celsius Network and Alex Mashinsky – When Deception Dressed Up as DeFi Innovation!

Celsius Network promised financial freedom through crypto, only to collapse into one of the most catastrophic failures in the DeFi sector. Founder Alex Mashinsky portrayed himself as the champion of the unbanked—yet behind the scenes, Celsius engaged in reckless trading strategies, misled customers, and operated more like a hedge fund than a lending platform.