Sam Bankman-Fried, the founder of failed FTX cryptocurrency exchange, has been arrested in The Bahamas after being criminally charged by United States prosecutors.
FTX filed for Chapter 11 bankruptcy protection in the US in November following its spectacular collapse that sent shivers through the industry.
Here is a history of FTX since its foundation in 2019:
May – Former Wall Street trader Sam Bankman-Fried and ex-Google employee Gary Wang founded FTX, the owner and operator of FTX.COM cryptocurrency exchange.
July – A $US900 million ($A1.3 billion) funding round valued FTX at $US18 ($A27) billion.
September – FTX signed a sponsorship deal with Mercedes’ Formula 1 team.
October – FTX raised capital at a valuation of $US25 billion ($A37 billion) from investors including Singapore’s Temasek and Tiger Global.
January 27 – FTX’s US arm said it was valued at $US8 billion ($A12 billion) after raising $US400 million ($A594 million) in its first funding round from investors including SoftBank Group and Temasek.
January 31 – FTX raised $US400 million ($A594 million) from investors including SoftBank at a valuation of $US32 billion ($A47 billion).
June 4 – FTX signed a reportedly $US135 million ($A200 million) sponsorship deal for naming rights of the Miami Heat’s home court.
July 1 – FTX signed a deal with an option to buy embattled crypto lender BlockFi for up to $US240 million ($A356 million).
July 22 – FTX offered a partial bailout of bankrupt crypto lender Voyager Digital. Voyager called it a “low-ball bid”.
August 19 – A US bank regulator ordered FTX to halt “false and misleading” claims it had made about whether funds at the company are insured by the government.
November 2 – Crypto news website CoinDesk reported a leaked balance sheet that showed Alameda Research, Bankman-Fried’s crypto trading firm, was heavily dependent on FTX’s native token, FTT. Reuters was unable to verify the report.
November 6 – Binance CEO Changpeng Zhao said his firm would liquidate its holdings of FTT due to unspecified “recent revelations”.
November 7 – Bankman-Fried said “FTX is fine. Assets are fine”.
November 8 – Binance said it was planning a deal to acquire FTX.
November 9 – Binance decided against pursuing a non-binding agreement to bail out FTX.
November 10 – FTX suspended on-boarding of new clients as well as withdrawals until further notice.
November 10 – Bankman-Fried told staff in a memo that he was seeking a capital raising and had held talks with Justin Sun, founder of the crypto token Tron.
November 10 – Reuters reported that Bankman-Fried was seeking to put together a rescue package of up to $US9.4 billion ($A13.9 billion) for FTX.
November 11 – FTX started voluntary Chapter 11 proceedings in the US along with its US unit, crypto trading firm Alameda Research and almost 130 other affiliates. Bankman-Fried resigns as CEO.
November 12 – Reuters reported at least $US1 billion ($A1.5 billion) of customer funds have vanished from FTX.
November 12 – FTX said it had detected unauthorised transactions. Blockchain analytics firms estimated outflows between $473 million and $659 million in “suspicious circumstances”.
November 13 – Bahamas securities regulator launched a probe over collapse of FTX.
November 14 – Reuters reported that US prosecutors in New York were probing FTX’s collapse.
November 15 – Financial regulators in the Bahamas appointed liquidators to run FTX’s unit in the country.
November 16 – FTX outlined a “severe liquidity crisis” in US bankruptcy filings, which showed the group could have more than one million creditors.
November 16 – A court filing showed FTX’s Bahamas unit, FTX Digital Markets, was seeking protection from creditors in the U.S. under Chapter 15 of the US Bankruptcy Code.
November 16 – Bankman-Fried was sued in a US court by investors alleging the company’s yield-bearing crypto accounts violated Florida law.
November 16 – Liquidators for FTX Digital Markets “reject the validity” of FTX’s US bankruptcy proceedings.
November 16 – Major crypto player Genesis Global Capital suspended customer redemptions in its lending business, citing the sudden failure of FTX.
November 17 – The US House Financial Services Committee said it planned to hold a hearing in December to investigate the collapse of FTX.
November 30 – Bankman-Fried said in an interview at the New York Times’ Dealbook Summit that “he didn’t ever try to commit fraud”.
December 12 – Police arrest Bankman-Fried in The Bahamas.
FTX INVESTORS SINCE 2019, AS PER PITCHBOOK:
2019: Tiger Global Management, Insight Partners, SoftBank Inves Investment Advisors, Temasek, Telstra Ventures, tors Teachers Venture Growth, Steadview Capital Management, Redline DAO, Paradigm, New Enterprise Associates, Lightspeed Ventures, 500 Global, Binance Labs, Consensus Lab, FBG Capital, Galois Capital, Greylock Capital Management, Lemniscap, Race Capital, IVP, HOF Capital.
2020: Bitscale Capital, BR Capital, Evangelion Capital, Inves Exnetwork Capital, Genblock Capital, Insignius, tors Capital, Pantera Capital.
2021: BlackRock, Tom Brady, Gisele Bundchen, Samsung NEXT Inves Ventures, Sequoia Capital, Coinbase Ventures, Base10 tors Partners, Astronaut Capital, AGE Crypto, Vetamer Capital, Senator Investment Group, Sea Capital, Paradigm, Meritech Capital Partners, ICONIQ Growth, Third Point Ventures, Thoma Bravo, Kevin O’Leary, Willoughby Capital, Digital Currency Group, Third Point, Tribe Capital, Bond Capital, Standard Investments, Circle, Ribbit Capital, Multicoin Capital, Mayfield, 6ixth Event, Abstract Ventures, Alan Howard, Altimeter Capital Management, Bond, Schoeneck & King, DHVC, Israel Englander, Mark VC.
2022: Temasek, SoftBank Vision Fund 2, Ontario Teachers Inves Pension Plan, K5 Global, MiH Ventures, Mint Ventures, tors NKB Ventures, Signum Capital, Alchemy Ventures, Lux Capital, Fenrir, Claritas Capital, Hard Yaka, Early Capital Group, Chapter One Ventures, One Block Capital, Chainfund Capital, A’Z Angels, Allied Investors Group, ArkStream Capital.