Samuel Bankman-Fried, founder and former CEO of the cryptocurrency exchange FTX and trading firm Alameda Research, was convicted in federal court in November 2023 on multiple counts of fraud and conspiracy related to the collapse of FTX. Prosecutors stated that he misappropriated customer funds and defrauded investors, resulting in billions of dollars in losses.
Court filings showed that Bankman-Fried diverted customer deposits from FTX to Alameda, used funds for personal investments, political contributions, and other expenditures, and misled investors about the security of customer assets. Civil suits were later filed seeking recovery of misappropriated funds.
In March 2024, Bankman-Fried was sentenced to 25 years in federal prison. His parents, Stanford Law School professors Joseph Bankman and Barbara Fried, were named in a civil lawsuit by FTX’s new owners regarding transfers of assets by their son, including real estate and cash, though they have not faced criminal charges.
