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Sam Bankman-Fried trial timeline: When will FTX founder face court?

By Alara Jordan


Updated

Sam Bankman-Fried
Sam Bankman-Fried was arrested in the Bahamas just hours before he was due to testify in front of congress – Photo: Getty Images

Sam Bankman-Fried, founder and former CEO of the collapsed crypto exchange FTX, was arrested in the Bahamas on 12 December at the request of US authorities. The arrest at his Bahamian base came just before he was due to testify in front of the US Congress the next day.

Damian Williams, US Attorney for the Southern District of New York confirmed the arrest via Twitter. Williams said: “We expect to move to unseal the indictment in the morning and will have more to say at that time.”

With Bankman-Fried's absence after his arrest, the newly appointed chief executive of FTX, John J. Ray III, who was given the job after the company’s bankruptcy, will testify during the hearing on 13 December.

‘Orchestrated scheme to defraud investors’

The Securities and Exchange Commission (SEC) announced on 13 December that Bankman-Fried had been charged with wire fraud, securities fraud, and money laundering.

The charges say the former chief executive of FTX, who was once worth an estimated $15bn, orchestrated a scheme to “defraud equity investors in FTX”, with SEC chair Gary Gensler stating that Bankman-Fried “built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

ETH/USD

3,487.05 Price
-0.990% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 6.00

US100

19,526.60 Price
-1.140% 1D Chg, %
Long position overnight fee -0.0263%
Short position overnight fee 0.0041%
Overnight fee time 21:00 (UTC)
Spread 7.0

Gold

2,401.36 Price
-1.830% 1D Chg, %
Long position overnight fee -0.0198%
Short position overnight fee 0.0116%
Overnight fee time 21:00 (UTC)
Spread 1.20

BTC/USD

66,787.45 Price
-0.930% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 21:00 (UTC)
Spread 106.00

The SEC statement said: “The alleged fraud committed by Mr. Bankman-Fried is a clarion call to crypto platforms that they need to come into compliance with our laws. To those platforms that don’t comply with our securities laws, the SEC’s Enforcement Division is ready to take action."

Bankman-Fried had previously Tweeted to confirm that he would testify in front of the US Congress and “try to be helpful” to help identify his own failures in the downfall of FTX and his role as CEO. 

A leaked document obtained by Forbes shows his planned testimony to Congress, and highlights how the former CEO says he was pressured into submitting FTX and its subsidiaries for Chapter 11 bankrupty, a claim he has been vocal about previously before.

The hearing started at 10am EST, with John J. Ray III listed at the witness set to testify, with further updates on Bankman-Fried's trial and fradulent charges set to follow.

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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