This moment is rooted in a November 2022 report published by Coindesk, which first highlighted the questionable financial situation behind FTX and SBF hedge fund Alameda Research. A bank run soon followed, and the FTX house of cards quickly collapsed. Competing company Binance acted quickly with plans to buy FTX, something that was complicated by its earlier – and famous – decision to dump its FTT, which was FTX’s token.
Within days, however, Binance suddenly canceled the deal. The Department of Justice was interested in finding out more about what led to the change, and the DOJ and SEC were investigating the crypto company. As recently as December 21, 2022, former Alameda CEO Caroline Ellison and FTX co-founder Gary Wang sued them.
That same week, Bankman-Fried was extradited to the US and, initially, into the custody of her parents. However, SBF was found guilty in August 2023 of being involved in potential evidence tampering. Because the conviction has been vacated, Bankman-Fried has been returned to the same jail in Brooklyn to await sentencing.