This second is in the end rooted in a November 2022 report printed by Coindesk, which first make clear the questionable funds behind FTX and SBF’s hedge fund Alameda Analysis. A financial institution run quickly adopted, and FTX’s home of playing cards quickly collapsed. Competing firm Binance had swooped in with plans to amass FTX, one thing that was difficult by its prior — and suitably cryptic — choice to dump its FTT, which was FTX’s personal crypto token.
Inside days, nonetheless, Binance all of a sudden backed out of the deal. The Division of Justice was very thinking about getting particulars on what led to that reversal, and each the DOJ and SEC had been investigating the crypto firm. Quick-forward to December 21, 2022, and each former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang had expenses filed in opposition to them.
That very same week, Bankman-Fried was extradited to the U.S. and, initially, into the custody of his mother and father. Nonetheless, SBF discovered himself behind bars in mid-August 2023 over considerations about potential witness tampering. With the decision out of the way in which, Bankman-Fried has been returned to the identical Brooklyn detention middle to await sentencing.