FTX has announced it will beryllium paid backmost astir of its customers 2 years aft it collapsed. Here's really we sewage to that point.
Once 1 of nan largest cryptocurrency exchanges successful nan world earlier its monumental illness 2 years ago, FTX said this week that astir each of its customers will person nan money backmost that they are owed.
FTX said successful a tribunal filing successful nan United States precocious connected Tuesday that it owes astir $11.2 cardinal (€10.4 billion) to its creditors.
The speech estimates that it has betwixt $14.5 cardinal (€13.5 billion) and $16.3 cardinal (€15.1 billion) to administer to them.
How did we get to this point? Here is simply a timeline of what led up to this week's announcement aft an implosion astatine FTX kicked disconnected what galore had expected to go a "crypto winter".
2022
November 2: Coindesk reports Alameda Reseach, Sam Bankman-Fried's cryptocurrency trading firm, holds a ample magnitude of FTT, a token issued by FTX, suggesting nan finances of nan 2 are intertwined and Alameda faces a rate crunch. The study spooks participants successful nan crypto market.
November 6: Rival cryptocurrency speech Binance announces that nan patient plans to waste each its holdings successful FTT. The value of FTT tanks.
November 8: Binance laminitis and CEO Changpeng Zhao said his institution had signed a missive of intent to bargain FTX because nan smaller speech was experiencing a "significant liquidity crunch". That woody would beryllium contingent, however, connected a look astatine nan books astatine FTX.
The value for Bitcoin tumbles 13 per cent.
November 9: Cryptocurrency prices plunge and aft getting a person look astatine nan finances of FTX, Binance retreated and said location would beryllium nary acquisition. "In nan beginning, our dream was to beryllium capable to support FTX’s customers to supply liquidity, but nan issues are beyond our power aliases expertise to help," Binance said successful a statement.
Bitcoin prices driblet different 14 per cent.
November 10: Crypto lender BlockFi announced it is "not capable to do business arsenic usual" and was pausing customer withdrawals arsenic a consequence of FTX’s implosion.
November 11: FTX files for Chapter 11 bankruptcy and Bankman-Fried resigns. John Ray III, a long-time bankruptcy litigator who is champion known for having to cleanable up nan messiness made aft nan illness of Enron, is named nan caller CEO.
In its bankruptcy filing, FTX listed much than 130 affiliated companies astir nan globe. The institution weighted its assets betwixt $10 cardinal (€9.3 billion) to $50 cardinal (€46.5 billion), pinch a akin estimate for its liabilities. Bitcoin falls 10 per cent.
November 17: Ray gives a damning explanation of FTX’s operations nether Bankman-Fried, from a deficiency of information controls to business costs being utilized to bargain labor homes and luxuries.
November 30: As portion of a media blitz, Bankman-Fried tells New York Time’s Andrew Ross-Sorkin, "Look, I screwed up," and didn't knowingly misuse clients' funds.
December 12: Bankman-Fried is arrested successful nan Bahamas, wherever FTX is headquartered.
December 13: The US authorities charges Bankman-Fried pinch a big of financial crimes, alleging he intentionally deceived customers and investors to enrich himself and others, while playing a cardinal domiciled successful nan company’s multibillion-dollar collapse.
Federal prosecutors said Bankman-Fried devised "a strategy and artifice to defraud" FTX’s customers and investors opening nan twelvemonth it was founded.
He illegally diverted their money to screen expenses, debts and risky trades astatine Alameda Research, and to make lavish existent property purchases and ample governmental donations, prosecutors said successful a 13-page indictment.
December 22: Bankman-Fried's parents agreed to motion a $250 cardinal (€232.7 million) enslaved and support him astatine their California location while he awaits trial.
2023
August 11: Judge revoked Bankman-Fried's bail and sent him to jailhouse aft concluding he had many times tried to power witnesses against him.
October 3: Jury action began for nan trial.
October 27: Bankman-Fried took nan guidelines successful his trial. He again acknowledged failures but denied defrauding anyone.
November 3: Bankman-Fried is convicted of fraud for stealing astatine slightest $10 cardinal from customers and investors.
2024
March 28: Bankman-Fried is sentenced to 25 years successful prison. Bitcoin has roared backmost from a monolithic sell-off during nan scandal. Prices are up astir 70 per cent.
April 30: Binance's Zhao is sentenced to 4 months successful situation for looking nan different measurement arsenic criminals utilized nan level to move money connected to kid activity abuse, supplier trafficking, and terrorism.
May 8: FTX says that astir each of its customers will person nan money backmost that they are owed, 2 years aft nan cryptocurrency speech imploded, and immoderate will get much than that.
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