Former overnight billionaire and FTX founder Sam Bankman-Fried went from captivating the minds of the world's smartest economists, politicians, and celebrities to facing over 100 years in prison for allegedly defrauding customers.
How did FTX, the second-largest crypto exchange in the world, enter Chapter 11 bankruptcy? FOX Nation's "Who Is Sam Bankman-Fried?" takes an exclusive look at the man behind the crypto giant's historical collapse.
The subscriber-exclusive special offers expert analysis from "Shark Tank" star and multi-millionaire investor Kevin O'Leary, FOX Business' Liz Claman and more.
The criminal trial of FTX founder and ex-CEO Sam Bankman-Fried was underway, Tuesday, in a case that will determine his fate as he faces seven federal charges of fraud and conspiracy in connection with the collapse of his crypto empire.
Former FTX chief Sam Bankman-Fried leaves the Federal Courthouse following a bail hearing ahead of his October trial, in New York City on July 26, 2023. | Getty Images
Customers lost billions as a result of the collapse, and Bankman-Fried resigned as CEO. He was replaced by John Ray III, who is best known for handling the bankruptcy of Enron and is now tasked with clawing back as many assets as possible for FTX's creditors.
Bankman-Fried has pleaded not guilty to all charges, but members of his inner circle — four former FTX and Alameda Research executives — have pleaded guilty to crimes connected to the companies' downfalls. They are expected to testify against him in the trial after agreeing to cooperate with the government.
In the wake of Bankman-Fried's trial, Kevin O'Leary analyzed the events that led to FTX's devastating collapse, arguing that people often forget that the company was a startup.
"As I tell people all the time, and this is what's missed on the FTX story in the Sam Bankman-Fried story, in the end, Sam was just another startup," O'Leary explained during his appearance on FOX Nation's "Who is Sam Bankman-Fried?"
"He raised a tremendous amount of capital at an extraordinary evaluation, at $22 billion, was the evaluation in the last round. And some of the largest financial institutions in the world were investors."
Financial expert Liz Claman bolstered O'Leary's claim, saying many investors believed in FTX because of an investment from one widely trusted firm.
"In his case, it was the venture capital firm Sequoia, which was totally legit. And then others he turns to and says, 'Well, Sequoia is investing.' And people then say, 'Well, Sequoia is investing, I should be okay,'" Claman explained.
Bankman-Fried has repeatedly claimed that FTX U.S. was solvent at the time Chapter 11 bankruptcy was filed and wrote that it is "ridiculous that FTX U.S. users haven't been made whole and gotten their funds back yet."
What led to the worst crypto disaster in history? FOX Nation gives subscribers an exclusive look into the rise and fall of FTX, closely analyzing Sam Bankman-Fried and his allegedly crooked role in one of the greatest economic disasters of the decade.
FOX Business' Breck Dumas' contributed to this report.