RecordLens
Menu

Claim review. Fraud

Contradicted

A reliable and applicable record states the opposite.

Before its collapse, FTX's founder told customers, investors and the public that FTX customer deposits were kept safe, held in custody and kept separate from company assets, according to DOJ.

About
FTX Trading Ltd.
Claim made by
US Department of Justice, regulator statement
Published
28 March 2024
Original
Samuel Bankman-Fried Sentenced to 25 Years for His Orchestration of Multiple Fraudulent Schemes
Evidence score
96 How it was scored
Last reviewed
25 October 2026

Why this label

The representation that customer deposits were safe and segregated is contradicted by the criminal record. DOJ states the founder made these statements and that they were false, and that he misappropriated billions of dollars of customer fundsS1. A jury convicted him on wire fraud and conspiracy counts on 2 November 2023S7, and the Second Circuit entered judgment affirming on 12 June 2026S6S3. A Supreme Court petition is pendingS6. The SEC complaint alleged an undisclosed diversion of customer funds to Alameda ResearchS2. The SEC case is a civil complaint and the conviction is the stronger record. Later recoveries for creditorsS4 do not change what happened to deposits at the time.

Current procedural position

Founder convicted after trial on 2 November 2023S7 and sentenced on 28 March 2024S1. Conviction affirmed by the Second Circuit on 12 June 2026 (No. 24-961). Certiorari petition No. 26-349 pending at the US Supreme Court as of October 2026S6.

Record supporting the assessment

repeatedly told his customers, his investors, and the public that customer deposits into FTX were kept safe and were held in custody for the customers
S1 Tier A US Department of Justice, Office of Public Affairs, Samuel Bankman-Fried Sentenced to 25 Years for His Orchestration of Multiple Fraudulent Schemes, 28 March 2024
misappropriated billions of dollars of customer funds deposited with FTX
S1 Tier A US Department of Justice, Office of Public Affairs, Samuel Bankman-Fried Sentenced to 25 Years for His Orchestration of Multiple Fraudulent Schemes, 28 March 2024
diversion of FTX customers' funds to Alameda Research LLC, his privately-held crypto hedge fund
S2 Tier A US Securities and Exchange Commission, SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTX, 13 December 2022

Conflicting or limiting record

No record located that conflicts with this assessment.

Evidence score: 96 of 100

The score grades how well the record establishes this assessment. It is not a score of FTX Trading Ltd.. Score = source authority + directness + corroboration + procedural accuracy + currency + reproducibility.

ComponentPointsMaxReason
Source authorityIs the source competent to establish the proposition?2930DOJ reports a jury conviction and sentence.
DirectnessDoes the source state the proposition or only discuss adjacent facts?1920The release addresses the safety and custody statements directly.
CorroborationDo independent records support the same material point?1515The SEC complaint, the Second Circuit judgment on the Supreme Court docket and press agree.
Procedural accuracyDoes the record settle the procedural state the claim describes?1315Conviction affirmed on appeal, with a Supreme Court petition pending.
CurrencyHas the record been checked against later developments?1010Checked against the Supreme Court docket as of 23 October 2026.
ReproducibilityCan a reader locate the passage and repeat the assessment?1010The DOJ release is in its archive.
Total96100

Timeline

  1. SEC charges the founderS2
  2. Jury guilty verdictS7
  3. Sentence of 25 years and US$11 billion forfeitureS1
  4. Second Circuit judgment affirming the convictionS6S3
  5. Certiorari petition filed at the US Supreme CourtS6

Related cases

  • United States v. Samuel Bankman-FriedUS District Court for the Southern District of New York, US Court of Appeals for the Second Circuit and Supreme Court of the United States. Criminal. No. 24-961 (Second Circuit), No. 26-349 (Supreme Court).Stage: Conviction affirmed by the Second Circuit on 12 June 2026. Certiorari petition pendingS6.
    • Second Circuit judgment declining to overturn the verdictS6S3
    • Supreme Court grants extension of the response time to 16 November 2026S6
  • SEC v. Samuel Bankman-FriedUS Securities and Exchange Commission. Civil. Not published.Stage: Complaint filed. Later stage not checked.

    Revision history

    • Assessment first published with label Contradicted.

    Have a record that changes this assessment? See corrections and responses.

    Sources

    1. S1Tier A Samuel Bankman-Fried Sentenced to 25 Years for His Orchestration of Multiple Fraudulent SchemesUS Department of Justice, Office of Public Affairs. Regulator press release. 28 March 2024.Supports the counts of conviction, the sentence, forfeiture and the false statements on customer deposits.Link working, checked 25 October 2026
    2. S2Tier A SEC Charges Samuel Bankman-Fried with Defrauding Investors in Crypto Asset Trading Platform FTXUS Securities and Exchange Commission. Regulator press release. 13 December 2022.Sets out SEC allegations of diverted customer funds. A complaint is an allegation, not a finding.
    3. S7Tier A Statement Of U.S. Attorney Damian Williams On The Conviction Of Samuel Bankman-FriedUS Attorney's Office, Southern District of New York. Government press release. 2 November 2023.Prosecutor statement on the day of the jury verdict. Fixes the conviction date. It does not list the counts.Link working, checked 25 October 2026
    4. S6Tier A Docket No. 26-349, Samuel Bankman-Fried, Petitioner v. United StatesSupreme Court of the United States. Court judgment. 23 October 2026.Official docket. Gives the Second Circuit case number 24-961, its judgment date of 12 June 2026, and the pending certiorari petition. The date is when the page was generated.Link working, checked 25 October 2026
    5. S3Tier C Sam Bankman-Fried Loses Appeal of Conviction for FTX Fraud (1)Bloomberg Law (Bob Van Voris and Ava Benny-Morrison). Press report. 12 June 2026.Reports the Second Circuit panel ruling and possible further steps. The opinion itself was not read.Link working, checked 25 October 2026
    6. S4Tier B FTX Recovery Trust to Distribute Approximately $2.2 Billion to Creditors in Fourth Distribution on March 31, 2026FTX Trading Ltd. and FTX Recovery Trust, via PR Newswire. Company statement. 18 March 2026.Supports cumulative distribution percentages by class. Percentages are of allowed claims under the plan.

    Other claims about FTX Trading Ltd.