Latest news with #AlamedaResearch
Hypebeast
5 days ago
- Business
- Hypebeast
Anthony Boyle and Julia Garner Cast in Netflix's FTX Series 'The Altruists'
Summary Netflixhas greenlitThe Altruists, an eight-episode limited series delving into the dramatic rise and fall of theFTXcryptocurrency exchange, withJulia Garnerand Anthony Boyle confirmed to star in the leading roles. Julia Garner, fresh off her acclaimed roles inOzarkandInventing Anna, will portray Caroline Ellison, the former CEO of Alameda Research, the cryptocurrency trading firm co-founded bySam Bankman-Fried. Anthony Boyle, known forMasters of the AirandSay Nothing, will take on the role of FTX founder Sam Bankman-Fried. The series' logline sets a compelling stage, 'The story of Sam Bankman-Fried and Caroline Ellison, two hyper-smart, ambitious young idealists who tried to remake the global financial system in the blink of an eye — and then seduced, coaxed, and teased each other into stealing $8 billion.'The Altruistsis a project from Higher Ground, the production company founded by Barack and Michelle Obama, underscoring Netflix's commitment to high-profile, real-life dramas. Co-showrunners Graham Moore and Jacqueline Hoyt will executive produce the series, which is expected to offer an in-depth look at the complex events surrounding FTX's implosion and the figures at its center. A release date forThe Altruistshas not yet been announced, but it is expected to hit screens in late 2026.
Yahoo
17-05-2025
- Business
- Yahoo
FTX to Pay Over $5B to Creditors as Bankrupt Estate Gears Up for Distribution
FTX creditors are set to receive over $5 billion in distributions starting May 30, as part of the second phase of the bankrupt exchange's court-approved recovery plan, the FTX Recovery Trust said Thursday. The estate will pay out to four classes of creditors, with recoveries ranging from 54% to 120% of their original claims. The amounts are based on the U.S. dollar value of customer holdings at the time of FTX's collapse in November 2022. BitGo and Kraken, two custodians overseeing the distribution process, are expected to transfer funds to eligible claimants within one to three business days from May 30. The payout breakdown includes 'Class 5' creditors, or Alameda Research counterparties, lenders, and trading vendors, who are set to receive between 54% and 72% of approved claims. Small, unsecured claimants are recovering about 61%. Meanwhile, intercompany claims involving FTX's various subsidiaries are being repaid at 120%. Over 90% of all claims have entered the distribution pipeline, the Repayment Trust said in its release. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
10-05-2025
- Business
- Forbes
From Riches To Rags, Millionaires And Billionaires Who Lost It All
The media loves celebrating the meteoric rise of millionaires and billionaires. It's a feel good story. They highlight their lavish lifestyles and business triumphs. Sometimes it seems that everyone is doing fabulously well, and we're missing out. Not everyone has a happy ever after story. Those who amassed vast fortunes only to lose some or all of their wealth are less frequently told. These tales of financial downfall, driven by poor investments, fraud, economic crises, or personal missteps, offer valuable lessons about the fragility of wealth. Here's the stories of some formerly prominent millionaires and billionaires who lost it all or nearly everything. Sam Bankman-Fried (SBF), once a crypto wunderkind, amassed and lost a staggering fortune through his ventures, FTX and Alameda Research. He was ultimately convicted for fraud. His career trajectory, from a high-flying billionaire to a convicted felon with a net worth of zero, offers a cautionary tale of unchecked ambition and flaunting the laws. After graduating from MIT in 2014 with a physics degree, he joined Jane Street Capital, a quantitative trading firm. His salary likely ranged from $100,000 to $300,000 annually. In 2017, he pivoted to crypto, founding Alameda Research. By exploiting Bitcoin arbitrage opportunities, such as price differences between Japan and the U.S., Alameda generated daily profits up to $1 million. The launch of FTX in 2019 catapulted SBF's wealth. As CEO and majority owner, he benefited from FTX's meteoric rise. By 2021, FTX raised $900 million at an $18 billion valuation, followed by $400 million in January 2022 at a $32 billion valuation. SBF's net worth peaked at $26.5 billion in early 2022, with most tied to his FTX stake, FTT tokens, and a 7.6% Robinhood stake ($648 million, later seized). Cumulatively, SBF's career earnings, salary, trading profits, and equity gains, likely exceeded $3 billion in asset value at their peak, though much was illiquid and tied to crypto valuations. The collapse of FTX in November 2022 obliterated SBF's fortune, marking one of history's largest wealth destructions. On November 6, 2022, his net worth stood at $15.6 billion, per Bloomberg's Billionaires Index. By November 11, as FTX filed for bankruptcy amid a customer withdrawal frenzy, it plummeted to zero, per CNN. Bloomberg described this as 'one of history's greatest-ever destructions of wealth.' SBF was convicted of fraud and related crimes in November 2023 and sentenced to 25 years in prison in March 2024, with an $11 billion forfeiture order. Elizabeth Holmes, once hailed as the youngest self-made female billionaire, built Theranos on the promise of revolutionizing blood testing with a device that could perform hundreds of tests from a single drop of blood. At its peak in 2015, Theranos was valued at $9 billion, and Holmes's 50% stake was worth approximately $4.5 billion. However, investigations by The Wall Street Journal and regulators revealed that Theranos's technology was fraudulent, producing inaccurate results that endangered patients. By 2016, the company collapsed, and Holmes's net worth plummeted to zero. In 2022, she was convicted of fraud and sentenced to 11 years in prison. Her story underscores the risks of overhyping unproven technology and the consequences of deceptive practices. According to a 2021 report by CNBC, Holmes's downfall was a cautionary tale for Silicon Valley, highlighting how unchecked ambition can lead to financial and legal ruin. Vijay Mallya, known as India's 'King of Good Times,' amassed a $1.5 billion fortune as a liquor baron and owner of Kingfisher Airlines. His flamboyant lifestyle, complete with private jets and yachts, masked growing financial troubles. by 2012, Kingfisher Airlines had racked up over $1 billion in debt, and Mallya defaulted on loans from Indian banks. Facing charges of money laundering and fraud, he fled to the UK, where he has been fighting extradition. His assets were seized, and his net worth dwindled. Mallya's case highlights how lavish spending and mismanaged ventures can erode wealth. A 2020 Business Insider report emphasized that Mallya's failure to diversify his investments and reliance on a failing airline were key factors in his financial collapse. Jordan Belfort, immortalized in the film The Wolf of Wall Street, built a multi-million-dollar fortune in the 1990s through his stockbroking firm, Stratton Oakmont. At age 25, he was reportedly earning $250 million annually, indulging in yachts, drugs, and extravagant parties. His wealth vanished when the FBI charged him with securities fraud and money laundering for manipulating stock prices in a 'pump-and-dump' scheme. After serving prison time and paying $100 million in restitution, Belfort was left with little. He later rebuilt a modest fortune through writing and motivational speaking, but his story remains a stark reminder of the consequences of illegal financial practices. Bernie Madoff, infamous for the largest Ponzi scheme in U.S. history, lost a personal net worth estimated at $823-$826 million before his 2008 downfall. His firm, Bernard L. Madoff Investment Securities, defrauded investors of $64.8 billion, promising consistent returns through fabricated trades. Madoff's wealth, tied to real estate, yachts, and investments, vanished when investors demanded $7 billion in 2008, exposing the scheme, per a 2020 Business Insider report. He was sentenced to 150 years in jail in 2009. Madoff died in prison in 2021.
NBC News
08-05-2025
- Business
- NBC News
Celsius CEO Alex Mashinsky sentenced to 12 years in multibillion-dollar crypto fraud case
Alexander Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years in prison on Thursday after pleading guilty to two counts of fraud, a dramatic fall for the leader of a company once hailed as the 'bank' of the crypto industry. Standing before U.S. District Judge John G. Koeltl in Manhattan's Southern District, Mashinsky faced the consequences of what prosecutors described as a sweeping scheme to defraud investors. In December he pleaded guilty to commodities fraud and a scheme to manipulate the Celsius token. His sentencing took place in courtroom 14A at 500 Pearl Street — a venue that has seen several crypto executives-turned-felons. Mashinsky's legal troubles began in 2023 when he was arrested on charges of securities, commodities, and wire fraud, just as Celsius reached a $4.7 billion settlement with the Federal Trade Commission — one of the largest in the FTC's history. The settlement, which remains contingent on Celsius returning what remains of customer assets in bankruptcy proceedings, underscored the magnitude of the fraud. Prosecutors accused Mashinsky of misleading investors about the safety and profitability of Celsius's yield-generating platform while secretly selling off tens of millions of dollars in personal holdings. Though he initially denied wrongdoing, his guilty plea and Thursday's sentencing mark the final chapter in a years-long case that also drew charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission, which accused Celsius and Mashinsky of orchestrating a multi-billion dollar fraud scheme. Mashinsky's downfall mirrors the fate of other once-dominant crypto executives like FTX founder Sam Bankman-Fried, Binance's Changpeng Zhao and Do Kwon of Terraform Labs. FTX Bankman-Fried was sentenced to 25 years in prison in March 2024 for the massive fraud and conspiracy that doomed his cryptocurrency exchange and a related hedge fund, Alameda Research. Once celebrated as a crypto wunderkind, Bankman-Fried was exposed for misappropriating billions of dollars in customer funds to support his own trading firm, Alameda Research, and for living an extravagant lifestyle in Hong Kong and later the Bahamas. Caroline Ellison, who led Alameda Research and was romantically involved with Bankman-Fried, received a significantly lighter sentence of two years. Her cooperation with prosecutors proved crucial in unraveling the complex web of fraudulent activities at FTX, allowing authorities to build a strong case against Bankman-Fried and other executives. Bankman-Fried is in the process of appealing his conviction and sentence. Ryan Salame, a former top lieutenant of FTX founder Sam Bankman-Fried, was sentenced to 90 months, followed by three years of supervised release. FTX engineering chief Nishad Singh got no jail time and three years of supervised release for his role in the crypto fraud; and Gary Wang, the co-founder and chief technology officer of FTX, also avoided prison time. In May 2024, the bankruptcy estate of FTX announced that almost all customers would get their money back — and more. A judge on Wednesday dismissed most of the claims against celebrities and athletes who were involved in promoting FTX in commercials and on other platforms. Stars like Tom Brady, Gisele Bündchen, Kevin O'Leary and Stephen Curry were among those facing a suit brought by a group of FTX investors. Binance In November 2023, Zhao, commonly known as 'CZ,' struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world's largest cryptocurrency exchange. Zhao stepped down as CEO in 2023 but retained a significant stake in Binance. In April 2024, Binance's billionaire founder was sentenced to four months in prison after pleading guilty to charges of enabling money laundering at his crypto exchange. He served his sentence at a low-security federal prison in Lompoc, California. Under new leadership, Binance has undergone a strategic pivot, aligning closely with the Trump administration's pro-crypto stance. CEO Richard Teng described President Donald Trump's second term as a 'fantastic reset' for the cryptocurrency industry, noting a dramatically improved regulatory environment for Binance in the U.S. Terraform Labs Months before Bankman-Fried and the FTX fraud was exposed, and years before Binance and its founder would admit fault and settle with the U.S. for several billion dollars, Kwon was widely regarded as crypto's top villain for nearly dismantling the entire sector with his failed U.S. dollar-pegged stablecoin. It was May 2022, and Kwon was riding high. His company, Terraform Labs, was behind one of the most popular U.S.-pegged stablecoins on the planet, the venture funding was rolling in, his coins (dubbed terra and luna) were collectively worth tens of billions of dollars, and like Bankman-Fried, Kwon had landed a spot on the prestigious Forbes 30 under 30 list. And then it all came crashing down. Whereas most stablecoins are backed up by a mix of cash and other assets to match the value of tokens in circulation, Kwon's invention was instead backed by a complex set of code. When the algorithm failed in May 2022, it cost investors $40 billion in market value overnight, led to devastating losses to multiple investors, and contributed to the collapse of hedge fund Three Arrows Capital in June 2022, followed by crypto lenders Voyager Digital, then BlockFi, then Genesis — and, in a roundabout way, FTX too. The stablecoin's implosion also rocked confidence in the sector and accelerated the slide in cryptocurrencies already underway as part of a broader pullback from risk. Last June, a judge signed off on Do Kwon and his bankrupt Terraform Labs settling with the U.S. Securities and Exchange Commission for $4.5 billion. Kwon was extradited to the U.S. from Montenegro to face fraud charges in January 2025. Ex-crypto tycoons awaiting judgement The fall of crypto hedge fund Three Arrows Capital, and lenders Voyager Digital and Celsius, can all be traced to the collapse of Kwon's stablecoin project. When 3AC's lenders asked for some of their cash back in a flood of margin calls, the money wasn't there. Many of the firm's counterparties were, in turn, unable to meet demands from their investors, including retail holders who had been promised annual returns of 20%. The three companies all went bankrupt and are currently at various stages of settling their debts, with Celsius having just emerged from bankruptcy in January. 3AC co-founder Kyle Davies said he's not sorry for the collapse of his fund, and has so far managed to avoid jail time by bouncing around the world, unlike his co-founder, Su Zhu, who served time in a Singaporean prison.
CNBC
08-05-2025
- Business
- CNBC
Celsius CEO Alex Mashinsky sentenced to 12 years in multi-billion-dollar crypto fraud case
Alexander Mashinsky, the former CEO of Celsius Network, was sentenced to 12 years in prison on Thursday after pleading guilty to two counts of fraud, a dramatic fall for the onetime leader of a company once hailed as the "bank" of the crypto industry. Standing before U.S. District Judge John G. Koeltl in Manhattan's Southern District, Mashinsky faced the consequences of what prosecutors described as a sweeping scheme to defraud investors. In December he pleaded guilty to commodities fraud and a scheme to manipulate the Celsius token. His sentencing took place in courtroom 14A at 500 Pearl Street — a venue that has seen several crypto executives-turned-felons. Mashinsky's legal troubles began in 2023 when he was arrested on charges of securities, commodities, and wire fraud, just as Celsius reached a $4.7 billion settlement with the Federal Trade Commission — one of the largest in the FTC's history. The settlement, which remains contingent on Celsius returning what remains of customer assets in bankruptcy proceedings, underscored the magnitude of the fraud. Prosecutors accused Mashinsky of misleading investors about the safety and profitability of Celsius's yield-generating platform while secretly selling off tens of millions of dollars in personal holdings. Though he initially denied wrongdoing, his guilty plea and Thursday's sentencing mark the final chapter in a years-long case that also drew charges from the Securities and Exchange Commission and the Commodity Futures Trading Commission, which accused Celsius and Mashinsky of orchestrating a multi-billion dollar fraud scheme. Mashinsky's downfall mirrors the fate of other once-dominant crypto executives like FTX founder Sam Bankman-Fried, Binance's Changpeng Zhao and Do Kwon of Terraform Labs. Bankman-Fried was sentenced to 25 years in prison in March 2024 for the massive fraud and conspiracy that doomed his cryptocurrency exchange and a related hedge fund, Alameda Research. Once celebrated as a crypto wunderkind, Bankman-Fried was exposed for misappropriating billions of dollars in customer funds to support his own trading firm, Alameda Research, and for living an extravagant lifestyle in Hong Kong and later the Bahamas. Caroline Ellison, who led Alameda Research and was romantically involved with Bankman-Fried, received a significantly lighter sentence of two years. Her cooperation with prosecutors proved crucial in unraveling the complex web of fraudulent activities at FTX, allowing authorities to build a strong case against Bankman-Fried and other executives. Bankman-Fried is in the process of appealing his conviction and sentence. Ryan Salame, a former top lieutenant of FTX founder Sam Bankman-Fried, was sentenced to 90 months, followed by three years of supervised release. FTX engineering chief Nishad Singh got no jail time and three years of supervised release for his role in the crypto fraud; and Gary Wang, the co-founder and chief technology officer of FTX, also avoided prison time. In May 2024, the bankruptcy estate of FTX announced that almost all customers would get their money back — and more. A judge on Wednesday dismissed most of the claims against celebrities and athletes who were involved in promoting FTX in commercials and on other platforms. Stars like Tom Brady, Gisele Bündchen, Kevin O'Leary and Stephen Curry were among those facing a suit brought by a group of FTX investors. In November 2023, Zhao, commonly known as "CZ," struck a deal with the U.S. government to resolve a multiyear investigation into Binance, the world's largest cryptocurrency exchange. Zhao stepped down as CEO in 2023 but retained a significant stake in Binance. In April 2024, Binance's billionaire founder was sentenced to four months in prison after pleading guilty to charges of enabling money laundering at his crypto exchange. He served his sentence at a low-security federal prison in Lompoc, California. Under new leadership, Binance has undergone a strategic pivot, aligning closely with the Trump administration's pro-crypto stance. CEO Richard Teng described President Donald Trump's second term as a "fantastic reset" for the cryptocurrency industry, noting a dramatically improved regulatory environment for Binance in the U.S. Months before Bankman-Fried and the FTX fraud was exposed, and years before Binance and its founder would admit fault and settle with the U.S. for several billion dollars, Kwon was widely regarded as crypto's top villain for nearly dismantling the entire sector with his failed U.S. dollar-pegged stablecoin. It was May 2022, and Kwon was riding high. His company, Terraform Labs, was behind one of the most popular U.S.-pegged stablecoins on the planet, the venture funding was rolling in, his coins (dubbed terra and luna) were collectively worth tens of billions of dollars, and like Bankman-Fried, Kwon had landed a spot on the prestigious Forbes 30 under 30 list. And then it all came crashing down. Whereas most stablecoins are backed up by a mix of cash and other assets to match the value of tokens in circulation, Kwon's invention was instead backed by a complex set of code. When the algorithm failed in May 2022, it cost investors $40 billion in market value overnight, led to devastating losses to multiple investors, and contributed to the collapse of hedge fund Three Arrows Capital in June 2022, followed by crypto lenders Voyager Digital, then BlockFi, then Genesis — and, in a roundabout way, FTX too. The stablecoin's implosion also rocked confidence in the sector and accelerated the slide in cryptocurrencies already underway as part of a broader pullback from risk. Last June, a judge signed off on Do Kwon and his bankrupt Terraform Labs settling with the U.S. Securities and Exchange Commission for $4.5 billion. Kwon was extradited to the U.S. from Montenegro to face fraud charges in January 2025. The fall of crypto hedge fund Three Arrows Capital, and lenders Voyager Digital and Celsius, can all be traced to the collapse of Kwon's stablecoin project. When 3AC's lenders asked for some of their cash back in a flood of margin calls, the money wasn't there. Many of the firm's counterparties were, in turn, unable to meet demands from their investors, including retail holders who had been promised annual returns of 20%. The three companies all went bankrupt and are currently at various stages of settling their debts, with Celsius having just emerged from bankruptcy in January. 3AC co-founder Kyle Davies said he's not sorry for the collapse of his fund, and has so far managed to avoid jail time by bouncing around the world, unlike his co-founder, Su Zhu, who served time in a Singaporean prison. This self-driving car technology stock could pop by more than 400%, say three analysts Looking for alternatives to Nvidia? Futurum CEO names 3 he's bullish on for 2024 Bernstein tech analyst's best idea for 2024 is to short Tesla Morgan Stanley picks 'alpha' opportunities in China tech - giving one 52% upside
