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Mr. Bankman-Fried oversaw two core businesses: FTX and a hedge fund called Alameda Research. Alameda was, at least in theory, simply a large customer of FTX that used the platform to trade digital currencies. But according to prosecutors, Mr. Bankman-Fried allowed Alameda to borrow a virtually limitless amount from FTX and then funneled much of that money into other projects. For example, regulators say, Alameda used customer funds to make large loans to FTX executives, who spent the money on political donations. Mr. Bankman-Fried faces an uphill battle in court.
Persons: Fried, FTX, , Caroline Ellison, Nishad Singh, Gary Wang —, Ryan Salame, Lewis A, Kaplan, Judge Kaplan Organizations: Alameda Research, Alameda Locations: FTX, United States, Alameda, Fried, Brooklyn
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Persons: Dow Jones, 17aaa89f
NEW YORK (AP) — For a while, Sam Bankman-Fried tried to convince politicians and the public that he was the next J.P. Morgan. The trial of Bankman-Fried, the founder of the failed cryptocurrency brokerage FTX, will begin Tuesday with jury selection. Political Cartoons View All 1190 ImagesThe 31-year-old Bankman-Fried founded FTX in 2019, and it grew rapidly. Bankman-Fried is expected come face-to-face with his former lieutenants at FTX for the first time since its collapse. She has previously said in a statement through her lawyers that she knew funneling FTX customers' money into Alameda was wrong.
Persons: Sam Bankman, Fried, Bernie Madoff, , Michael Zweiback, Zweiback, Zalduendo, FTX, SBF ”, J.P, Morgan, Tiger Woods, Justin Timberlake, Bankman, John Ray III, Caroline Ellison, Gary Wang, Ryan Salame, Salame, Ellison, funneling, Christine Adams, Adams, Andrew Ross Sorkin, Judge Lewis A, Kaplan, Changpeng Zhao, Larry Neumeister Organizations: Southern, of, Republicans, “ Prosecutors, Zalduendo LLP, Stanford University, Alameda Research, Alameda, Enron, FTX, Bankman, Prosecutors, The New York Times, NFTs, Securities and Exchange Commission, Binance, SEC Locations: Morgan, of New York, Washington, cryptocurrencies, Silicon Valley, FTX, The Bahamas, Albany, Alameda, Bahamas, New York, Palo Alto , California
This week, he will stand trial in what federal prosecutors have called one of the biggest frauds in US history. The 31-year-old Bankman-Fried, known as SBF, has pleaded not guilty to seven counts of fraud and conspiracy in connection with the collapse of FTX, his crypto-trading platform. Here are the key things to know about the case, and what we might see over the next several weeks at the trial. SBF faces seven counts, including wire fraud and securities fraud. FTX founder Sam Bankman-Fried was a crypto celebrity until November last year, when his business empire collapsed.
Persons: Sam Bankman, Fried, SBF, FTX, Tom Brady, Larry David, Amr Alfiky, Bankman, Caroline Ellison, Ellison, , , Howard Fischer, Moses Singer, Fischer, Lewis Kaplan, he’s Organizations: New, New York CNN, Prosecutors, Alameda Research, Super, Reuters, Investors, Bankman, Coindesk, Alameda, New York Times, Securities and Exchange, Enron, Metropolitan Detention Locations: New York, Bahamas, FTX, Miami, Alameda, United States, Manhattan, Brooklyn
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Persons: Dow Jones, ellison
FTX has sued founder Sam Bankman-Fried’s parents to recover millions of dollars in “fraudulently transferred and misappropriated funds,” the company said in a court filing late Monday. Joseph Bankman and Barbara Fried, both Stanford Law School professors, “exploited their access and influence within the FTX enterprise to enrich themselves,” the company, operated in bankruptcy by new management, alleged.
Persons: FTX, Sam Bankman, Joseph Bankman, Barbara Fried, Organizations: Stanford Law School
A spokeswoman for Mr. Bankman and Ms. Fried did not immediately respond to a request for comment. FTX filed for bankruptcy protection in November, after a run on deposits exposed an $8 billion hole in the exchange’s accounts. He has pleaded not guilty, and is scheduled to go on trial on Oct. 3FTX’s collapse fueled scrutiny of Mr. Bankman and Ms. Fried. According to the lawsuit, Mr. Bankman helped arrange hundreds of millions of dollars in loans to top employees and was listed on an internal document as a member of the firm’s management team. In messages cited in the lawsuit, Mr. Bankman complained that he was receiving a salary of only $200,000 a year, as opposed to the $1 million he thought he would get.
Persons: Bankman, Fried, FTX, “ Gee, Sam I, , Larry David Locations: Manhattan
FTX sues Sam Bankman-Fried’s parents
  + stars: | 2023-09-19 | by ( Allison Morrow | ) edition.cnn.com   time to read: +4 min
New York CNN —Bankrupt crypto exchange FTX is suing founder Sam Bankman-Fried’s parents, accusing them of siphoning millions of dollars in company funds to enrich themselves and their “pet causes.”The lawsuit aims to recover funds that the company claims were “fraudulently transferred and misappropriated” by Bankman-Fried’s parents. FTX collapsed into bankruptcy in November last year as questions about its finances rattled crypto markets and prompted a sudden, massive drawdown of customer funds. Despite Bankman-Fried’s assertions that his parents weren’t involved in “any of the relevant parts” of FTX, the lawsuit claims that his parents played a role from the beginning. She described herself as her son’s “partner in crime of the noncriminal sort,” the lawsuit claims. In April, FTX told the bankruptcy court it had recovered $7.3 billion in assets.
Persons: Sam Bankman, , Joe Bankman, Barbara Fried, Fried, Joe, Barbara, FTX, weren’t, Bankman, , ” Fried, Fried’s, John J, Ray III, , Ray Organizations: New, New York CNN, Stanford, Southern, of, Bankman, FTX Group, Super Bowl, Alameda Research Locations: New York, of New York, Bahamas, FTX
New York CNN —Stanford University said it will be returning gifts it received from bankrupt crypto exchange FTX “in their entirety,” after a lawsuit against founder Sam Bankman-Fried’s parents alleged the school received millions of dollars in donations. The school said it received the gifts from the FTX Foundation and its related companies “for pandemic-related prevention and research,” a Stanford spokesperson said. “We have been in discussions with attorneys for the FTX debtors to recover these gifts and we will be returning the funds in their entirety,” the spokesperson said. Bankman donated more than $5.5 million in FTX Group donations to his employer, Stanford University, the lawsuit alleges. FTX went bankrupt last November as questions about its finances rattled crypto markets and prompted a sudden, massive drawdown of customer funds.
Persons: Sam Bankman, , , FTX, Joe Bankman, Barbara Fried, Bankman, Fried, Joe, Barbara Organizations: New, New York CNN — Stanford University, FTX Foundation, Stanford, FTX Group, Stanford University Locations: New York
FTX entered bankruptcy in November when the global exchange ran out of money after the equivalent of a bank run. Several other former FTX executives have pleaded guilty to fraud and conspiracy charges and are cooperating with investigators. The scheme involved Bankman-Fried receiving a loan from Alameda, then transferring the money to his parents. According to FEC records, Singh contributed roughly $9.7 million in 2022 and in late 2020 to various candidates and committees. The judge revoked Bankman-Fried’s bail last month after finding probable cause that he had tampered with witnesses.
Persons: Sam Bankman, , Allan Joseph Bankman, Barbara Fried, FTX, Fried, Bankman, , “ Bankman, John Ray III, Joe, Barbara, Ray, “ Fried, Nishad Singh, ” Singh, Singh, Ryan Salame Organizations: , FTX, Stanford University, Alameda Research, Stanford, FTX Group, Bankman, FEC, FTX Digital Markets Locations: Del, Bahamas, Delaware, Manhattan, Alameda, FTX
NEW YORK (AP) — Another top executive at the failed FTX cryptocurrency exchange is scheduled to appear in court in New York Thursday afternoon to face undisclosed criminal charges. Ryan Salame, the former co-chief executive of FTX Digital Markets, was set to appear before a judge at 3 p.m. at the U.S. district court in Manhattan. Federal prosecutors didn't immediately disclose what charges Salame is facing or reveal details about the case. Before FTX collapsed and declared bankruptcy in November, Bankman-Fried had been one of the best-known U.S. crypto entrepreneurs. Bankman-Fried and people associated with his companies, including Salame, were also heavy givers to political campaigns.
Persons: Ryan Salame, didn't, Jason Linder, FTX, Sam Bankman, Caroline Ellison, Nishad Singh, Gary Wang, Fried, Larry David, Salame Organizations: FTX, Alameda Research Locations: New York, U.S, Manhattan, Bahamas, Alameda, Bankman
New York CNN —Ryan Salame, a former top executive of FTX, the now-bankrupt cryptocurrency trading platform, is expected to plead guilty to criminal charges in a New York courtroom on Thursday afternoon, a person familiar with the matter has told CNN. The plea comes less than one month before Sam Bankman-Fried, co-founder of the digital currency exchange, is set to go on trial. Salame, served as the chief executive of FTX and was a top lieutenant of Bankman-Fried, who is set to go to trial on October 2 facing numerous wire fraud and conspiracy charges. Prosecutors have said Salame played a role in the alleged scheme involving political donations. They want to show the jury a private message Salame sent to a family member in November 2021, explaining that he was a straw donor that Bankman-Fried used to make political donations.
Persons: New York CNN — Ryan Salame, Sam Bankman, Fried, Salame’s, Caroline Ellison, Gary Wang, FTX, Nishad Singh, Salame Organizations: New, New York CNN, FTX, CNN, Prosecutors, Bankman, Republican, Democrat Locations: New York, Bankman, Alameda
A diet of bread, water and peanut butter. A laptop with no internet connection. Sam Bankman-Fried, the 31-year-old cryptocurrency mogul, has spent nearly a month at the Metropolitan Detention Center in Brooklyn since a federal judge revoked his bail in August. They have also said he has not been getting enough access to the internet to prepare for his trial and should be released. They did not reach a resolution, leaving it for the judge to decide.
Persons: Sam Bankman, Fried, FTX, Bankman Organizations: Metropolitan Detention Locations: Brooklyn, Bahamas
CNN —Federal prosecutors in Manhattan filed another indictment against FTX co-founder Sam Bankman-Fried Monday, dropping another count against him. Prosecutors had previously indicated their plans to drop the one count of conspiracy to make unlawful campaign contributions against Bankman-Fried last month in a letter to the court. Prosecutors maintain that Bankman-Fried conducted an illegal campaign finance scheme in connection to the charges that are moving forward to trial. “The defendant’s use of customer deposits to conduct a political influence campaign was part of the wire fraud scheme charged in the original indictment. Bankman-Fried’s attorneys said they reserve the right to challenge evidence prosecutors may seek to use.
Persons: FTX, Sam Bankman, Prosecutors, Fried, docketed, Sam, arraign, ledgers, Caroline Ellison, , Ellison, Ryan Salame, Salame, , Bankman Organizations: CNN, Federal, Bankman, United, Government, Prosecutors, Alameda Research, ” Prosecutors, Alameda Locations: Manhattan, Bahamas, United States, New York, Alameda, FTX
Prosecutors in the criminal case against Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, on Monday provided the most detailed account to date of the evidence they plan to use to convict him at trial in October. In a 70-page court filing, the prosecutors said they would draw on testimony from some of Mr. Bankman-Fried’s closest advisers, as well as an expert witness and other employees of FTX and Alameda Research, a crypto hedge fund he also founded. The prosecutors also said they planned to use notes that Caroline Ellison, one of Mr. Bankman-Fried’s top lieutenants, took after conversations with him, including a memo titled “Things Sam Is Freaking Out About.” And they said they would introduce a recording of a meeting in which Ms. Ellison told Alameda employees that she had worked with Mr. Bankman-Fried to siphon funds from FTX customers’ accounts. Mr. Bankman-Fried, a onetime crypto mogul who built FTX into one of the world’s largest virtual currency exchanges, was arrested in December and charged with orchestrating a sweeping scheme to use customer deposits to finance real estate purchases, charitable giving and donations to politicians. Ms. Ellison and two other top FTX executives, Gary Wang and Nishad Singh, have pleaded guilty to participating in the effort and agreed to cooperate with prosecutors.
Persons: Sam Bankman, Bankman, Caroline Ellison, Sam, Ellison, Gary Wang, Nishad Singh Organizations: Alameda Research, Alameda, Mr Locations: FTX
Sam Bankman-Fried, the founder of the collapsed cryptocurrency exchange FTX, was ordered to jail on Friday after a federal judge in New York revoked his bail, in a dramatic twist less than two months before the case was set to go to trial. Mr. Bankman-Fried, 31, had been under house arrest at his parents’ home in Palo Alto, Calif., since he was arrested in December on fraud charges stemming from FTX’s implosion. The decision was the latest extraordinary development in one of the most dramatic corporate implosions in recent memory. Over just a few weeks, Mr. Bankman-Fried went from an industry titan courted by politicians and celebrities to a criminal defendant facing decades in prison. Ms. Ellison has pleaded guilty to fraud charges and agreed to cooperate with the prosecutors investigating Mr. Bankman-Fried.
Persons: Sam Bankman, , Judge Lewis A, Kaplan, Fried, FTX, Caroline Ellison, Bankman, Ellison Organizations: Federal, Court, New York Times Locations: New York, Palo Alto, Calif, Manhattan
New York CNN —Sam Bankman-Fried, the alleged crypto grifter, is about to learn which of two profoundly divergent paths he’ll take on the road to trial. One path allows him to continue his house arrest in the comfort of his parents’ California home. If his bail is revoked, Bankman-Fried will be immediately remanded to a notorious federal detention center in Brooklyn. Bankman-Fried, who has pleaded not guilty to multiple conspiracy and fraud charges, is set to go to trial in October. But the company came unglued in the span of a week last November — as concerns about its financial ties to Bankman-Fried’s crypto hedge fund, Alameda Research, spurred investors and customers to yank their funds.
Persons: Sam Bankman, , Judge Lewis Kaplan, , , Fried, Caroline Ellison, FTX Organizations: New, New York CNN, Bankman, Metropolitan Detention Center, New York Times, of Prisons, Prosecutors, Super Bowl, Alameda Research Locations: New York, ’ California, Brooklyn, Bahamas
CNN —Federal prosecutors urged a judge to revoke Sam Bankman-Fried’s bail to stop him from tampering with witnesses before his criminal fraud trial, saying there are likely no conditions that the cryptocurrency entrepreneur will abide by to satisfy their concerns. The additional arguments were made in a court filing Friday — following a hearing on Wednesday when prosecutors first asked the judge to detain the co-founder of FTX. “The defendant’s argument that the defendant did nothing other than exercise his First Amendment rights is a red herring. Witness tampering is not constitutionally protected speech,” prosecutors wrote. The charges against Bankman-Fried stem from what prosecutors have characterized as one of the biggest financial frauds in US history.
Persons: Sam Bankman, , Fried, Caroline Ellison, CNN’s Allison Morrow Organizations: CNN, Prosecutors, Bankman Locations: Bahamas
New York CNN —A federal judge is set to consider a gag order on former FTX CEO Sam Bankman-Fried after prosecutors accused him of leaking his former girlfriend and business partner’s personal writings to the New York Times. US District Court Judge Lewis Kaplan was expected to rule on a so-called gag order that would prevent Bankman-Fried from discussing his case publicly. At a previous bail hearing, Kaplan alluded to the possibility of revoking Bankman-Fried’s bail deal and forcing him to await trial in jail. In February, Judge Kaplan tightened restrictions on Bankman-Fried’s bail after prosecutors flagged a direct message Bankman-Fried sent to a former FTX employee, raising concerns about potential witness-tampering. While his lawyers said they would comply with any gag order, they pushed back on prosecutors’ allegations of witness-tampering.
Persons: Sam Bankman, Fried, Prosecutors, Caroline Ellison, Lewis Kaplan, Kaplan, , Palo, Judge Kaplan, Ellison Organizations: New, New York CNN, New York Times, Bankman, Google, Alameda Research Locations: New York, Palo Alto , California, Alameda, FTX
Minneapolis CNN —Federal prosecutors have accused former FTX CEO Sam Bankman-Fried of witness tampering after he allegedly leaked the personal writings of his former girlfriend and business partner, Caroline Ellison, to the New York Times. They reportedly detailed her “unhappy and overwhelmed” emotional state as CEO of Alameda Research, FTX’s crypto hedge fund. The writings also reportedly expressed her doubts about her ability to make decisions and effectively run the business. Prosecutors say she is expected to serve as a witness in their criminal case against Bankman-Fried, who has pleaded not guilty to eight federal counts of fraud and conspiracy. A spokesperson for the New York Times and a lawyer representing Ellison did not immediately respond to requests for comment.
Persons: Sam Bankman, Caroline Ellison, Lewis Kaplan, Bankman, , Ellison, Kaplan, Damian Williams, , ” Williams, Fried, — CNN’s Kara Scannell Organizations: Minneapolis CNN — Federal, New York Times, Star, Google, Alameda Research, Prosecutors, Government, ” Prosecutors, Bankman Locations: Minneapolis, FTX
Three months before the cryptocurrency market imploded last year, Caroline Ellison, the 27-year-old chief executive of the crypto hedge fund Alameda Research, was racked with self-doubt. “I have been feeling pretty unhappy and overwhelmed with my job,” Ms. Ellison wrote in a Google document in February 2022. She did not think that she was well suited to running Alameda or was a particularly decisive leader, she wrote in another Google document. They had dated on and off, and Ms. Ellison worried about “making things weird” and “causing drama.”“It doesn’t really feel like there’s an end in sight,” she wrote in the February 2022 document. Now Ms. Ellison is poised to be a star witness at Mr. Bankman-Fried’s criminal trial, which is scheduled for Oct. 2.
Persons: Caroline Ellison, , ” Ms, Ellison, Ms, Sam Bankman, , Bankman Organizations: Alameda Research Locations: Alameda
labs and safety research organizations contain some trace of effective altruism’s influence, and many count believers among their staff members. Some Anthropic staff members use E.A.-inflected jargon — talking about concepts like “x-risk” and memes like the A.I. (Just one example: Ms. Amodei is married to Holden Karnofsky, the co-chief executive of Open Philanthropy, an E.A. Open Philanthropy, in turn, gets most of its funding from Mr. Moskovitz, who also invested personally in Anthropic.) safety was genuine, in part because its leaders had sounded the alarm about the technology for so long.
Persons: E.A.s, Dustin Moskovitz, Jaan, Anthropic, Sam Bankman, Fried, Bankman, Amodei, Shoggoth, Holden Karnofsky, Luke Muehlhauser, Moskovitz Organizations: Facebook, Skype, Open Locations: E.A, Jaan Tallinn, Anthropic
CNN —Taylor Swift signed onto a lucrative touring partnership with FTX before its collapse, but FTX pulled out of the arrangement, according to a person familiar with the discussions. Bankman-Fried has been accused of orchestrating one of the biggest financial frauds in US history, allegedly costing investors billions of dollars and improperly using customer funds from his cryptocurrency exchange, FTX. But a person familiar with the Swift discussions said the artist’s side had agreed to a $100 million tour sponsorship deal, but the deal was never finalized due to hesitation on FTX’s side. Other celebrities, including Tom Brady, Gisele Bundchen, Steph Curry, and Naomi Osaka, signed deals with FTX, which declared bankruptcy last fall. Brady and Bundchen also held stakes in FTX that were likely entirely wiped out.
Persons: CNN — Taylor Swift, FTX, cryptocurrency, Swift’s, Sam Bankman, Adam Moskowitz, endorsers, Swift, Fried, Moskowitz, , , Taylor Swift, Tom Brady, Gisele Bundchen, Steph Curry, Naomi Osaka, Brady, Bundchen, Jimmy Fallon, Madonna, Kim Kardashian, Max, CNN’s Kara Scannell, Chloe Melas Organizations: CNN, FTX, New York Times, Financial Times, Securities and Exchange Commission
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As they built K5, Mr. Kives and Mr. Baum touted their connections, including with the billionaire financier Warren E. Buffett. In an interview, Mr. Buffett said Mr. Kives was a “name-dropper” who “might pitch that he has a connection to me, but he doesn’t.” Mr. Buffett said he had known Mr. Kives from his time at Creative Artists Agency. Since then, he said, Mr. Kives has contacted him about a few investment opportunities, which he declined. In late 2021, Mr. Kives used his network to forge a relationship with Mr. Bankman-Fried, who was rising in prominence as cryptocurrencies boomed. They got in touch over email, the lawsuit said, and Mr. Kives introduced Mr. Bankman-Fried to the musician Sia.
Persons: Kives, Baum, Warren E, Buffett, dropper, ” Mr, Sia, Fried, Kives’s, Perry, Bloom, FTX Organizations: Creative Artists Agency, Super, K5 Locations: Beverly Hills, Calif, Bahamas
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