How Did FTX Fail?
FTX filed for bankruptcy on Nov. 11, 2022, after a surge of customer withdrawals earlier in the month. Then-CEO Bankman-Fried admitted that the company didn't have sufficient assets in reserve to meet customer demand.
Did FTX Get Hacked?
Within hours of filing for bankruptcy, FTX alleged it was hacked. The exchange noted “unauthorized transactions†that may have stolen close to $500 million in assets, and which were spotted by Elliptic, a crypto compliance service. The hacker continued to drain wallets for several days using what analysts called “on-chain spoofing.†The hacker reportedly then invested those funds in Ether (ETH).
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What Happens Next to Ex-FTX CEO Bankman-Fried?
Bankman-Fried is set to face trial on eight criminal charges on Oct. 2. After a court hearing on Dec. 22, 2023, a federal judge decided to release Bankman-Fried from custody after his attorneys and federal prosecutors agreed to a $250 million bond, the largest ever. He will live with his law professor parents in Palo Alto, California, be confined to the Northern California area, and wear an electronic monitoring bracelet.
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On Jan. 3, 2023, Bankman-Fried pleaded not guilty to all criminal charges in a federal court in New York.
FTX filed for bankruptcy on Nov. 11, 2022, after a surge of customer withdrawals earlier in the month. Then-CEO Bankman-Fried admitted that the company didn't have sufficient assets in reserve to meet customer demand.
Did FTX Get Hacked?
Within hours of filing for bankruptcy, FTX alleged it was hacked. The exchange noted “unauthorized transactions†that may have stolen close to $500 million in assets, and which were spotted by Elliptic, a crypto compliance service. The hacker continued to drain wallets for several days using what analysts called “on-chain spoofing.†The hacker reportedly then invested those funds in Ether (ETH).
22
What Happens Next to Ex-FTX CEO Bankman-Fried?
Bankman-Fried is set to face trial on eight criminal charges on Oct. 2. After a court hearing on Dec. 22, 2023, a federal judge decided to release Bankman-Fried from custody after his attorneys and federal prosecutors agreed to a $250 million bond, the largest ever. He will live with his law professor parents in Palo Alto, California, be confined to the Northern California area, and wear an electronic monitoring bracelet.
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On Jan. 3, 2023, Bankman-Fried pleaded not guilty to all criminal charges in a federal court in New York.
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