The cryptocurrency world was rocked by the downfall of Sam Bankman-Fried, once hailed as a golden boy in the industry. The founder and former CEO of FTX, one of the largest cryptocurrency exchanges in the world, was sentenced to 25 years in prison after being convicted of fraud for stealing at least $10 billion from customers and investors.

The collapse of FTX sent shockwaves through the digital currency market, with prices plunging as a result. The timeline of events leading up to Bankman-Fried's downfall began in November 2022, when reports surfaced that Alameda Research, Bankman-Fried's trading firm, was facing financial difficulties. This prompted rival exchange Binance to announce plans to sell its holdings in FTX, causing the price of FTX's token to plummet.

As the situation at FTX worsened, with BlockFi pausing client withdrawals and FTX ultimately filing for Chapter 11 bankruptcy, Bankman-Fried resigned and a new CEO, John Ray III, was appointed. Ray revealed the extent of mismanagement under Bankman-Fried's leadership, including a lack of security controls and misuse of funds for personal gain.

Bankman-Fried's troubles continued as he was arrested in the Bahamas and charged by the U.S. government with a series of financial crimes. Despite his parents agreeing to a $250 million bond to keep him at their California home, Bankman-Fried's bail was revoked after he was found to have tried to influence witnesses against him.

After a lengthy trial, Bankman-Fried took the stand to deny defrauding anyone, but on March 28, 2024, he was sentenced to 25 years in prison. Despite the scandal surrounding FTX, Bitcoin prices have since rebounded, rising nearly 70% from the depths of the sell-off.