FTX
FTX collapsed Nov 2022 with ~$8B in misused customer funds; SBF convicted on 7 counts, serving 25 years (upheld Jun 2026); estate has repaid creditors 105-120% of Nov 2022 claim values.
FTX, once among the largest crypto exchanges, filed for Chapter 11 on November 11, 2022 after a surge in customer withdrawals exposed an ~$8 billion hole in its accounts. Customer deposits had been secretly funneled to founder Sam Bankman-Fried's trading firm Alameda Research to cover risky trades, venture bets, and loans.
Bankman-Fried was convicted in November 2023 on seven counts — two of wire fraud, two of conspiracy to commit wire fraud, and conspiracies to commit securities fraud, commodities fraud, and money laundering. Per the DOJ, he misappropriated billions in customer funds, defrauded FTX investors of more than $1.7 billion, and defrauded Alameda's lenders of more than $1.3 billion. On March 28, 2024 he was sentenced to 25 years in prison, three years of supervised release, and $11 billion in forfeiture. On June 12, 2026 the Second Circuit upheld both conviction and sentence, calling the evidence against him robust; a clemency petition is pending, though President Trump has said publicly he is not considering a pardon.
The FTX Recovery Trust began repaying creditors in February 2025, with rounds of ~$5B (May 2025), ~$1.6B (Sept 2025), ~$2.2B (March 2026), and a fifth ~$900M distribution starting July 31, 2026 — taking announced distributions past $9.7 billion. Customer classes have now recovered 105% (120% for small convenience claims) of claim values, though valued in November 2022 petition-date dollars rather than appreciated crypto prices.
Sources: [DOJ press release (Mar 2024)](https://www.justice.gov/archives/opa/pr/samuel-bankman-fried-sentenced-25-years-his-orchestration-multiple-fraudulent-schemes) · [FTX Recovery Trust fifth-distribution release (Jul 2026)](https://www.prnewswire.com/news-releases/ftx-announces-fifth-distribution-of-approximately-900-million-to-creditors-on-july-31-2026-302828726.html) · [CoinDesk on Second Circuit ruling (Jun 2026)](https://www.coindesk.com/policy/2026/06/12/ftx-s-sam-bankman-fried-loses-appeal-of-criminal-conviction-on-fraud-conspiracy-charges) · [CoinDesk on distribution schedule (Jan 2026)](https://www.coindesk.com/business/2026/01/14/ftx-estate-sets-next-creditor-payout-date-as-genesis-digital-assets-fights-usd1-billion-clawback-suit)
**Official action:** DOJ conviction Nov 2023 (7 counts); 25-year sentence + $11B forfeiture Mar 2024; Second Circuit affirmed conviction and sentence Jun 12, 2026
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