Sam Bankman-Fried Violated Catastrophic Primary evidence Financial

Bankman-Fried: 'FTX has enough to cover all client holdings. We don't invest client assets.'

Made 2022-11-07 00:00:00+00 · Audience · Customers

// The promise

“FTX has enough to cover all client holdings. We don't invest client assets (even in treasuries). We have been processing all withdrawals, and will continue to be.”

Sam Bankman-Fried on Twitter, 7 November 2022 (archived; later deleted) ↗

Four days after this public assurance, FTX filed for bankruptcy. Bankman-Fried was subsequently convicted on seven counts of fraud and conspiracy after evidence showed customer funds had been routed to his hedge fund Alameda Research.

// What actually happened (2 sourced violations)

#1 2022-11-11 00:00:00+00 4 days later primary evidence

FTX files for Chapter 11 bankruptcy; Bankman-Fried resigns as CEO.

Reuters, 11 November 2022 ↗
#2 2024-03-28 00:00:00+00 507 days later primary evidence

Bankman-Fried convicted on all seven counts of fraud and conspiracy; sentenced to 25 years in prison.

US Department of Justice, 28 March 2024 ↗

PROVE IT How verification works →