Gary Wang, Caroline Ellison, and Nishad Singh, who all pleaded guilty to charges related to the downfall of crypto exchange FTX and its sister company in November 2022, testified against Sam Bankman-Fried at his trial in the Southern District of New York courthouse. The three are facing potential prison sentences of up to 50, 110, and 75 years, respectively. However, as part of their cooperation agreements with the U.S. government, they may avoid jail time if they continue to cooperate and tell the truth. While it is not guaranteed, it is typical for first-time offenders in white-collar cases to avoid jail time as cooperating witnesses.

According to CoinDesk, FTX is proposing a settlement agreement to pay 90% of the remaining assets after the FTX bankruptcy proceedings to creditors. Lawyers representing some creditors are now working to secure enough investor support to implement this agreement.

Lawyers representing FTX creditors are working to push the bankruptcy case forward with the goal of returning 90% of funds to users. The lawyers must obtain the support of 60 individuals and entities in the creditor group and 75% of investors who register as members in the coming weeks before December 1st. Eversheds Sutherland lawyer Sarah Paul said that even if the settlement plan is approved by creditors, approval from the bankruptcy court is still required. The ultimate goal is to emerge from bankruptcy by around July 2024, at which time users will be able to retrieve funds that have been locked since last year.

Thomas Braziel, a partner at 117 Partners specializing in FTX debt research, said that some FTX debt off-exchange trades have been valued at over 50%, indicating that the market currently expects about half of user assets to be recovered. Last Friday, a debt worth over $20 million was sold at an auction for about 52% of the price, but only "the largest and cleanest debt" could be sold at this price.

Thomas Braziel, who specializes in FTX debt claims, stated that some FTX creditors value their claims at over $0.5. Purchasing a claim gives the holder the right to recover any assets from FTX's bankruptcy estate, and a price above $0.50 indicates that the market currently expects about half of user assets to be recovered. Braziel, a partner at 117 Partners, said that in Friday's auction, claims worth over $20 million were sold at around 52 cents, but only the "largest, cleanest claims" were able to fetch that price. Since the artificial intelligence company Anthropic, which purchased a large stake in FTX, announced several major investments recently, enthusiasm for the value of FTX claims has continued to rise. Creditors hope that selling shares in Anthropic will help return funds to creditors and potentially achieve full recovery. In a January survey of X, most respondents expected a claims payout rate of only 25%. Since then, the FTX debtor estate led by CEO John Ray III has attempted to recover funds, started selling tokens, and liquidated other assets of the estate. Meanwhile, SBF's criminal trial is still ongoing.

The trial of Sam Bankman-Fried is nearing its end, with the prosecution set to conclude their case on October 26 after hearing from almost 20 witnesses. The prosecution has argued that Bankman-Fried intentionally deceived former FTX employees, customers, investors, government officials, and law enforcement agents, resulting in an $8 billion gap between FTX and Alameda Research in November 2022. Bankman-Fried's defense has not yet confirmed whether they will present a case, but if they do, it will begin on October 26. The defense has struggled to present a narrative to jurors, and the prosecution has the burden of proving the alleged crimes.

According to the market data from Eu Yi OKX, the SOL/ETH exchange rate has reached a 23-year high of 0.018 and has returned to the level of November 9, 2022. As previously reported , SOL fell 30% on November 9, 2022 when FTX announced the closure of its withdrawal function.

FTX creditor Sunil posted on X platform to remind users that the FTX withdrawal links received recently are all phishing scams, and specifically pointed out the malicious address "[email protected]". Users are advised to carefully check the sender's address and not click on malicious links.

On October 21st, according to multiple sources, perpetrators who are impersonating FTX officials are sending emails containing fraudulent information to creditors' email addresses. Investors should not believe these emails and should properly safeguard their personal assets.

Can Sun, former general counsel of FTX, testified that FTX's Series C financing began in "late summer and autumn of 2022." An electronic spreadsheet showed that 15 potential investors, including BlackRock, Google, and Apollo, were interested in participating in this round of financing, with the possibility of BlackRock and Google investing being "medium." Both companies conducted due diligence on FTX before it went bankrupt.

October 20th, former FTX general counsel Can Sun testified in the SBF criminal trial, stating that in November 2022, asset management company Apollo Global Management expressed interest in investing in FTX and requested a copy of the financial statements. When the copies were made, Can Sun discovered a $7 billion gap in FTX's balance sheet related to Alameda. Can Sun resigned from the company afterwards. Can Sun previously worked as a lawyer at Fenwick and West and joined FTX in August 2021.

Former senior lawyer Sam Bankman-Fried stated that asset management giant Apollo Global Management withdrew from the FTX rescue plan at the last minute after learning that billions of dollars of customer funds were missing and the exchange could not provide legal basis for the shortage. FTX collapsed a few days later.

Can Sun, FTX's general counsel, told the jury during Sam Bankman-Fried's criminal fraud trial that he "never approved" of FTX lending customer funds to sister company Alameda Research. Can Sun served as FTX's general counsel from August 2021 to November 2022, during the period when the exchange collapsed. When asked if he agreed to Alameda using FTX customer funds, he said "absolutely not."

According to the US Department of Justice (DOJ), they have hired accounting professor Peter Easton from the University of Notre Dame to track billions of dollars in funds between Alameda and FTX. During the SBF trial hearing, the professor testified that FTX used customer funds to repurchase all of its shares held by Binance in 2022, with over $1 billion coming from FTX's customer funds. Easton testified that user deposits were also reinvested in businesses and real estate, used for political donations, and donated to charitable organizations. Previously, in 2019, as part of a strategic partnership between the two companies, Binance invested an undisclosed amount of funds in FTX. Binance CEO CZ stated in an article in 2022 that the company had received over $2.1 billion in BUSD and FTX's FTT tokens as part of the buyback. (CoinDesk) Earlier reports stated that in 2021, SBF repurchased FTX shares held by CZ for $2.275 billion in response to regulatory scrutiny.

A court hearing on Wednesday revealed that FTX used client funds to buy back all shares held by its competitor Binance. As part of the buyback, Binance CEO Zhao Changpeng stated in a 2022 article that the company received over $2.1 billion in BUSD and FTT tokens. Peter Easton, an accounting professor at the University of Notre Dame, was employed by the US Department of Justice (DOJ) to track the billions of dollars in transactions between Alameda and FTX, which is also part of the ongoing SBF trial.

During the fraud trial of Sam Bankman-Fried, prosecutors presented evidence of his vulgar messages to journalists about regulators. The messages included his belief that regulators "make everything worse" and his prior support for cryptocurrency regulation being mere public relations.

Peter Easton, an accounting professor at Notre Dame University, appeared in court to explain the severity of Alameda Research's alleged misuse of FTX client and investor funds. Based on Easton's testimony and a large number of process diagrams, between January 4, 2022 and February 11, 2022, $1.1 billion of FTX client deposits flowed to Alameda Research, with most of it being used for political donations, real estate investments, venture capital, and charitable donations. In June 2022, Alameda's debt to FTX clients reached $11.3 billion, while Alameda and FTX's bank accounts had about $2.3 billion. This means that if every client chooses to withdraw their funds, the shortfall that Alameda and FTX cannot make up will reach $9 billion.

According to The Block, court documents show that FTX had agreed to pay nearly $100 million in sponsorship fees to Riot Games, the developer of "League of Legends," within seven years. After FTX announced bankruptcy, Riot Games began trying to withdraw from the deal at the end of last year.

According to court documents presented as evidence in Sam Bankman-Fried's criminal trial, FTX agreed to pay nearly $100 million in sponsorship fees to the development team of the game League of Legends, Riot Games, who agreed to receive nearly $100 million over seven years. After FTX declared bankruptcy due to customer losses, Riot Games began trying to withdraw from the deal at the end of last year. The documents also show that FTX agreed to provide approximately $42 million to the Tomorrowland music festival before 2026, an event frequently attended by top DJs such as Solomun. The Coachella music festival, held annually in Southern California, also signed a $25 million agreement with FTX. This spreadsheet details dozens of sponsorship agreements signed by FTX during the crypto bull market, which prosecutors included as evidence on Monday and released in full today.

FTX exchange clients could receive a payout of $9.2 billion by mid-2024 as part of the ongoing bankruptcy proceedings. The agreement between creditors and the new management of the platform marks a significant milestone in resolving clients' property disputes. The proposed plan involves segregating FTX assets into three categories, with platform users receiving approximately $8.9 billion and the American division receiving $166 million. The settlement is subject to court approval, with an application deadline of December 16, 2023.