Latest news with #Bankman-Fried
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
Yahoo
08-05-2025
- Business
- Yahoo
Tom Brady, Stephen Curry and other big names are mostly off the hook from the FTX fallout
A Florida federal judge has dismissed most of the claims against marquee celebrities and influencers who pushed the now-defunct cryptocurrency exchange FTX. Stars like New England Patriots quarterback Tom Brady, model Gisele Bündchen, Canadian TV personality Kevin O'Leary, and basketball standout Stephen Curry were among those who promoted FTX, which collapsed spectacularly in 2022, causing investors to lose billions. A group of FTX investors claimed that the celebs should be held liable in a suit filed shortly after the exchange's collapse. 'None of these defendants performed any due diligence prior to marketing these FTX products to the public,' according to the original lawsuit. However, in an order filed Wednesday, U.S. District Judge K. Michael Moore found that the plaintiffs failed to show that the celebrities and YouTubers named in the lawsuit had insufficient knowledge of FTX and CEO Sam Bankman-Fried's business to be held liable for promoting the exchange. According to a New York Times report, Brady received $30 million in now-worthless stock for pitching the company in television ads and at its conference. Brady's then-wife, Gisele Bündchen, received $18 million in stock, per the report. All shares are now worthless. Sam Bankman-Fried, also known as 'SBF,' launched the cryptocurrency exchange FTX in 2019. As the COVID-19 pandemic later boosted cryptocurrency trading worldwide, FTX rode the wave. In 2020, FTX purchased Blockfolio, the market's leading mobile news and portfolio tracking app, for $150 million. Bankman-Fried appeared as a speaker at various crypto and blockchain conferences, attracting a large following. But in November 2022, the crypto news website CoinDesk reported on FTX's poor balance sheet and liquidity crisis. Big names such as cryptocurrency exchange Binance opted not to provide any support to FTX or Bankman-Fried. FTX quickly collapsed, resulting in a loss of $10 billion in customer funds. This had a ripple effect on other crypto companies, throwing them into financial turmoil. Several companies with direct or indirect connections to FTX — including BlockFi, Voyager, Celsius, Genesis, and Gemini — went bankrupt in a matter of weeks. The cryptocurrency market saw its darkest period to-date, resulting in a loss of more than $1 trillion, and Bitcoin's price dropped below $18,000. In November of 2023, a federal jury in New York convicted Bankman-Fried of fraud on seven different fraud and conspiracy charges and stealing at least $10 billion from customers and investors. —Vinamrata Chaturvedi contributed to this article. For the latest news, Facebook, Twitter and Instagram.
Arabian Post
07-05-2025
- Business
- Arabian Post
Netflix to Bring FTX Collapse to Screen with Star Cast
Netflix is set to develop a dramatic series surrounding the FTX collapse of 2022, which rocked the cryptocurrency world and resulted in major financial losses for investors. The story, one of the most significant in recent history, has caught the attention of top-tier actors, with Julia Garner in discussions to play Caroline Ellison, the former CEO of Alameda Research, the trading firm closely linked to FTX. Meanwhile, Evan Peters is rumored to portray Sam Bankman-Fried, the former CEO of FTX, whose arrest and legal proceedings following the scandal have made international headlines. The collapse of FTX, once valued at $32 billion, shocked both the cryptocurrency and finance industries. Bankman-Fried's fall from grace, from being one of the most prominent figures in the crypto space to facing multiple charges of fraud and money laundering, has become a subject of intense public interest. The bankruptcy of FTX, alongside the allegations against its executives, has led to widespread scrutiny of the cryptocurrency industry's regulatory framework and the practices of its leading platforms. Bankman-Fried, who was once hailed as the 'crypto wunderkind,' is now facing a complex legal battle after being accused of orchestrating a scheme that defrauded thousands of investors. Netflix's adaptation is expected to delve into the intricacies of the rise and fall of FTX, exploring not only Bankman-Fried's role but also the individuals around him, including Caroline Ellison. Ellison, who was the chief executive of Alameda Research, has become a key figure in the FTX saga. She has publicly admitted to playing a role in the mismanagement of funds and has faced intense media scrutiny. The series will likely focus on her complex relationship with Bankman-Fried, along with the broader implications of the collapse on the cryptocurrency market. Julia Garner, known for her critically acclaimed performance in *Inventing Anna*, has reportedly been tapped to bring Ellison to life on screen. Garner's ability to portray complex, multi-dimensional characters has earned her significant praise, making her an ideal choice for the role. As the plot of the show centres around one of the most publicized financial collapses in recent memory, Garner's portrayal of Ellison will be under close scrutiny, as audiences seek a deeper understanding of the individuals behind the scandal. Evan Peters, who gained significant recognition for his work in *American Horror Story* and his portrayal of Jeffrey Dahmer in *Dahmer – Monster: The Jeffrey Dahmer Story*, is rumored to be cast as Sam Bankman-Fried. However, this casting has not been officially confirmed. If Peters does join the project, his performance could become a focal point, given Bankman-Fried's high profile and the sheer drama surrounding his arrest and subsequent legal proceedings. Peters' previous work has demonstrated his range and ability to embody controversial figures, making him a strong candidate for such a complex role. The series will likely shed light on the inner workings of FTX, exploring its rise to prominence and the decisions that ultimately led to its downfall. Bankman-Fried, who was once celebrated for his philanthropy and innovative approach to crypto trading, has become a symbol of the dangers of unregulated financial ventures. His arrest in December 2022, just weeks after the collapse, marked the beginning of a high-profile legal process that continues to unfold. As the series is still in development, few details have been released about the production timeline or the full cast. However, Netflix has a history of producing compelling dramas based on real-life events, from *The Crown* to *Making a Murderer*, and this new project is expected to garner significant attention. The platform's focus on bringing real-world stories to life has proven successful in the past, with audiences eager to watch depictions of events that have captured the public's imagination. See also Ripple's $5 Billion Bid for Circle Rejected Amid IPO Focus The FTX collapse continues to reverberate through the cryptocurrency industry, with ongoing investigations and trials. As the legal case against Bankman-Fried progresses, the series will likely serve as a poignant reminder of the consequences of financial mismanagement and the vulnerability of investors in the fast-paced world of digital currencies. With a star-studded cast and a compelling storyline, Netflix's upcoming drama is poised to become a major cultural touchpoint for those following the saga of FTX. Arabian Post – Crypto News Network
Forbes
27-03-2025
- Business
- Forbes
Sam Bankman-Fried No Longer In New York City Prison
Disgraced FTX founder Sam Bankman-Fried was moved from the Metropolitan Detention Center in New York City and is being held in a federal transfer center, according to federal prison information. Bankman-Fried had been held at the notorious Brooklyn prison—which has also housed other famous inmates including Sean 'Diddy' Combs, R. Kelly and Ghislaine Maxwell—since August 2023. Thursday morning, though, the Federal Bureau of Prisons website showed he was located at FTC Oklahoma City, an administrative security federal transfer center. Last May there were reports prison officials had begun moving Bankman-Fried out of the Brooklyn facility and his representatives said they believed he was going to Mendota, California, which would be near his hometown of Stanford, California. But Bankman-Fried was in the Metropolitan Detention Center recently: In early March, conservative personality Tucker Carlson released a lengthy video interview with SBF that reportedly got him moved to solitary confinement. Forbes is reaching out to Bankman-Fried's team for comment. Get Forbes Breaking News Text Alerts: We're launching text message alerts so you'll always know the biggest stories shaping the day's headlines. Text 'Alerts' to (201) 335-0739 or sign up here. Yes. In the interview he did with Tucker Carlson that aired March 6, Bankman-Fried said he hung out daily with the music mogul—who is facing federal sex trafficking charges. SBF said Diddy has 'been kind to me,' and added: 'If someone told me three years ago that, 'Oh, you'd be hanging out with Diddy every day,' I'd be like, 'That's interesting; I wonder how that's going to happen,'' New York Magazine reported. SBF is serving a 25-year sentence after being convicted in late 2023 for seven counts of conspiracy, wire fraud, securities fraud and money laundering related to his cryptocurrency currency, FTX. He was also ordered to pay $11 billion in forfeiture and will have three years of supervised release, according to the Department of Justice. Bankman-Fried founded FTX in 2019 and served as its CEO, but his empire fell apart in 2022 after a crypto rival backed out of a deal to buy the exchange and investors became suspicious. A report from CoinDesk found that Alameda, FXS's sister trading firm, relied on funds from the crypto firm to cover its expenses, and Forbes reported Alameda had been losing billions of dollars for two years. FTX filed for bankruptcy, and Bankman-Fried was hit with eight criminal charges. Sam Bankman-Fried Charged With Eight Criminal Counts—Including Wire Fraud And Campaign Finance Violations (Forbes) Sam Bankman-Fried Moved to Oklahoma Prison Transit Facility (Wall Street Journal) One Community. Many Voices. Create a free account to share your thoughts. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. In order to do so, please follow the posting rules in our site's Terms of Service. We've summarized some of those key rules below. Simply put, keep it civil. Your post will be rejected if we notice that it seems to contain: User accounts will be blocked if we notice or believe that users are engaged in: So, how can you be a power user? Thanks for reading our community guidelines. Please read the full list of posting rules found in our site's Terms of Service.
