The volatile cryptocurrency market lost billions of dollars as FTX collapsed, falling below $1 trillion. The cryptocurrency exchange went from a company with a peak valuation of $32 billion to filing for bankruptcy after a surge of customer withdrawals earlier in November in just a few days. The chief executive officer then stated that the company did not have enough assets in reserve to meet the demands of its customers.
Sam Bankman-Fried, also known as SBF, was the former CEO and founder of the now bankrupt cryptocurrency exchange FTX. He was arrested in Nassau at the request of the United States government in connection with alleged fraudulent activities while in charge of FTX. SBF is now facing criminal charges, including securities fraud and money laundering, that could land him in jail for the rest of his life.
A federal judge decided to release SBF from custody following a court hearing last week, on December 22, after prosecutors and his attorneys reached an agreement on a $250 million bond. SBF’s parents secured his bond with the equity in their house since he claimed that, after the collapse of FTX, he had only $100,000 in his bank account.
SBF has to live with his parents in Palo Alto, California, and go to counseling for mental health and drug abuse. He also has to wear an electronic monitoring bracelet and stay in Northern California.
His next court appearance is scheduled for next week, January 5, 2023, where he is expected to enter a guilty plea to the charges, following the examples of his former colleagues Caroline Ellison and Gary Wang, who already pleaded guilty to fraud charges earlier this month.