The Trial Against Sam Bankman-Fried: How Did We Get Here?

FTX, founded by Sam Bankman-Fried and Gary Wang in 2019, quickly became a major player in the crypto exchange market, attracting significant investments and celebrity endorsements. By 2022, FTX was valued at $32 billion. Bankman-Fried, known for his effective altruism and political donations, faced a crisis in November 2022 when FTX's financial instability was exposed, leading to a massive withdrawal of funds. Attempts to sell FTX to Binance failed, resulting in bankruptcy and Bankman-Fried's resignation. He later faced legal charges for financial fraud, marking one of the largest fraud cases in American history.

What was the primary goal of FTX when it was founded in 2019?

• To become the largest crypto exchange

• To focus on celebrity endorsements

• To create a safe and responsible platform for traders

• To develop a new cryptocurrency

By early 2022, what was the valuation of FTX?

• $32 billion

• $26 billion

• $30 billion

• $25 billion

What philosophy did Sam Bankman-Fried follow regarding his wealth?

• Hedonism

• Capitalism

• Effective altruism

• Minimalism

What event triggered the massive wave of withdrawals from FTX in November 2022?

• A new competitor in the market

• A report on Alameda Research's assets

• A change in government regulations

• A celebrity scandal

What was Sam Bankman-Fried accused of after FTX's collapse?

• Misappropriating billions of dollars

• Insider trading

• Tax evasion

• Money laundering