EXHIBIT 004 / SEGMENT 01
The Money In
In January 2022, FTX raised $400 million at a $32 billion valuation. The SEC later said the company had raised more than $1.8 billion from investors since May 2019. Prestigious backers were not a substitute for verified accounts.
EXHIBIT 004 / SEGMENT 02
The Machine
FTX offered crypto trading while its founder also controlled Alameda Research, a trading firm. The separation customers thought they were buying was not the separation they got. Customer money was diverted to Alameda.
EXHIBIT 004 / SEGMENT 03
The Fatal Decision
The fatal decision was treating customer deposits as available capital. The collapse was triggered by a confidence crisis and withdrawal rush, but the underlying hole already existed. A bank run revealed the problem; it did not invent it.
EXHIBIT 004 / SEGMENT 04
The Autopsy
FTX and affiliates filed for Chapter 11 on November 11, 2022. The incoming leadership described a profound failure of corporate controls. Sam Bankman-Fried was later convicted of fraud and conspiracy and sentenced to 25 years in prison in 2024.
EXHIBIT 004 / SEGMENT 05
Who Got Rich Anyway
Some insiders and recipients benefited before the collapse, but benefits are not the same as money retained. Bankruptcy recovery actions and criminal proceedings changed the ledger. Customers, investors and the estate had very different claims on what remained.
EXHIBIT 004 / SEGMENT 06
The Receipt
Not vibes. Verifiable numbers. These are the sources behind this case file.
| Figure | Value | Source |
|---|---|---|
| Private valuation · Jan 2022 | $32 billion | Reuters |
| Capital raised from investors | More than $1.8 billion | SEC · December 2022 |
| Chapter 11 filing | Nov 11, 2022 | Reuters |
| Bankman-Fried prison sentence | 25 years | US Department of Justice |
