FTX, once among the largest cryptocurrency exchanges in the world, said this week that nearly all of its customers will receive the money back that they are owed, two years after its monumental collapse.
FTX said in a court filing late Tuesday that it owes about $11.2 billion to its creditors. The exchange estimates that it has between $14.5 billion and $16.3 billion to distribute to them.
Here is a timeline of what led up to this week's announcement after an implosion at FTX kicked off what many had expected to become a “crypto winter.â€
2022
Nov. 2: Coindesk reports Alameda Reseach, Bankman-Fried's cryptocurrency trading firm, holds a large amount of FTT, a token issued by FTX, suggesting the finances of the two The report spooks participants in the crypto market.
Nov. 6: Rival cryptocurrency exchange Binance announces that . The price of FTT tanks.
Nov. 8: Binance founder and CEO Changpeng Zhao said his company had because the smaller exchange was experiencing a “significant liquidity crunch.†That deal would be contingent, however, on a look at the books at FTX. The price for bitcoin tumbles 13%.
Nov. 9: Cryptocurrency prices plunge and after getting a closer look at the finances of FTX, . “In the beginning, our hope was to be able to support FTX’s customers to provide liquidity, but the issues are beyond our control or ability to help,†Binance said in a statement. Bitcoin prices drop another 14%.
Nov. 10: Cryptocurrency lender BlockFi announced it is “not able to do business as usual†and was
Nov. 11: and Bankman-Fried resigns. John Ray III, a long-time bankruptcy litigator who is best known for having to clean up the mess made after the collapse of Enron, is named the new CEO.
In its bankruptcy filing, FTX listed more than 130 affiliated companies around the globe. The company valued its assets between $10 billion to $50 billion, with a similar estimate for its liabilities. Bitcoin falls 10%.
Nov. 17: under Bankman-Fried, from a lack of security controls to business funds being used to buy employees homes and luxuries.
Nov. 30: As part of a media blitz, Bankman-Fried , “Look, I screwed up,â€
Dec. 12: , where FTX is headquartered.
Dec. 13: , alleging he intentionally deceived customers and investors to enrich himself and others, while playing a central role in the company’s multibillion-dollar collapse.
Federal prosecutors said Bankman-Fried devised “a scheme and artifice to defraud†FTX’s customers and investors beginning the year it was founded. He illegally diverted their money to cover expenses, debts and risky trades at Alameda Research, and to make lavish real estate purchases and large political donations, prosecutors said in a 13-page indictment.
Dec. 22: and keep him at their California home while he awaits trial.
2023
August 11: after concluding he had repeatedly tried to influence witnesses against him.
Oct. 3: for the trial.
Oct. 27: He again acknowledged failures but denied defrauding anyone.
Nov. 3: for stealing at least $10 billion from customers and investors.
2024
March 28: Bankman-Fried is Bitcoin has roared back from a massive sell-off during the scandal. Prices are up nearly 70%.
April 30: Changpeng Zhao, the founder of Binance, for looking the other way as criminals used the platform to move money connected to child sex abuse, drug trafficking and terrorism.
May 8: FTX says that nearly all of its customers will , two years after the cryptocurrency exchange imploded, and some will get more than that.
