As Sam Bankman-Fried awaits prison sentence, FTX customers await a surprise: full repayment
Government exhibit in the case against former FTX CEO Sam Bankman-Fried.
Source: SDNY
As Sam Bankman-Fried prepares to face sentencing next month for his criminal fraud conviction tied to the epic collapse of FTX in 2022, former customers of the crypto exchange have reasons to believe they could actually recoup their money.
Bankman-Fried, who could spend the rest of his life behind bars, was found guilty in November on seven criminal counts after roughly $10 billion in customer funds from his company went missing. Some of that money went to pay for Bankman-Fried’s lavish lifestyle, but much of it went towards other investments that have, of late, appreciated dramatically in value.
Lawyers representing the bankruptcy estate of FTX told a judge in Delaware last week that they expect to fully repay customers and creditors with legitimate claims. Bankruptcy attorney Andrew Dietderich, who works with FTX’s new leadership team, said “there is still a great amount of work and risk” ahead in getting all the money back to clients, but that the team has a “strategy to achieve it.”
It’s a welcome development for the many thousands of customers (reportedly up to a million) who collectively lost billions of dollars in FTX’s collapse 15 months ago, when the crypto exchange spiraled into bankruptcy in a matter of days. Given the lightly regulated and unsecured nature of FTX — and the crypto industry at large — those clients faced the real possibility that the vast majority of their money had evaporated. Plenty of failed hedge funds and lenders lost virtually everything during the 2022 crypto winter.
Bankman-Fried never believed his company’s situation was that dire.
Even as regulators and federal prosecutors unearthed evidence showing that the 31-year-old entrepreneur and his top lieutenants had been pilfering billions of dollars from customer wallets for years, Bankman-Fried insisted that all the money was still somehow accessible.
“FTX US remains fully solvent,” Bankman-Fried wrote in a Substack post on Jan. 12, 2023, while he was under house arrest at his parents’ home in Palo Alto, California. He said the exchange “should be able to return all customers’ funds.”
In some ways, his narrative appears to be proving true.
Joseph Bankman and Barbara Fried arrive for the trial of their son, former FTX Chief Executive Sam Bankman-Fried, who is facing fraud charges over the collapse of the bankrupt cryptocurrency exchange, at Federal Court in New York City, U.S., October 26, 2023.
Brendan Mcdermid | Reuters
For months, FTX’s new CEO, John Ray III, and his team of restructuring advisors have been clawing back cash, luxury property, and crypto, as well as tracking down missing assets. They’ve already collected more than $7 billion, and that doesn’t include valuables like $26 million in gifts and property to Bankman-Fried’s parents, or the $700 million handed over to K5 Global and founder Michael Kives, who invested FTX cash in companies like SpaceX. Some of those investments have seen a precipitous rise in value.
FTX had been negotiating with bidders about a potential reboot of the company, but those efforts were scrapped last month.
Braden Perry, who was once a senior trial lawyer for the Commodity Futures Trading Commission, FTX’s only official U.S. regulator, told CNBC that the decision to repay users in full came after “the abandonment of efforts to restart the FTX crypto exchange,” in favor of “a focus on liquidating assets to make customers whole.”
Getting actual money back in the hands of customers still remains a challenge. While a lot of the value has been recouped and more is to come, divvying up large amounts of cash is a complex process in bankruptcies, particularly when so much of the money is in non-traditional and illiquid assets.
Even Ray was doubtful at the beginning of the process, noting in late 2022 that, “At the end of the day, we’re not going to be able to recover all the losses here.”
‘Sam coins’ soar
What Ray wasn’t banking on was a huge market rebound. When he made those remarks, crypto was mired in a bear market, with bitcoin trading at around $16,000. It’s now above $47,000.
In September, the bankruptcy team released a status report showing that FTX had $3.4 billion worth of digital assets, with over $1.1 billion coming from its Solana investment.
Solana fits into a category of so-called “Sam coins,” a group that also includes Serum, a token created and promoted by FTX and sister hedge fund Alameda Research. After the dust settled from FTX’s bankruptcy, Solana saw a huge run-up in its price, and it continued to rally after the September report. Since the end of that month, it’s spiked fivefold.
Meanwhile, FTX’s bitcoin stash, which was worth $560 million at the time of the September report, is today valued north of $1 billion.
Bankman-Fried’s investments weren’t limited to crypto. He also used client money to back startups like Anthropic, the artificial intelligence company founded by ex-OpenAI employees. FTX invested $500 million in Anthropic in 2021, before the generative AI boom. Anthropic’s valuation hit $18 billion in December 2023, which would value FTX’s roughly 8% stake at about $1.4 billion.
During Bankman-Fried’s criminal trial in New York, Judge Lewis Kaplan denied the defense’s request that it be permitted to say that FTX’s investment in Anthropic was a smart bet. The bankruptcy estate of FTX has been looking to sell its Anthropic stake, according to a court filing this month.
Sam Bankman-Fried stands as forewoman reads the verdict to the court.
Artist: Elizabeth Williams
In his biography on Bankman-Fried titled “Going Infinite,” Michael Lewis said he was told by an investor interested in bidding for the venture portfolio that “if it was sold intelligently, it should go for at least $2 billion.” Lewis, who published his book late last year, wrote that, based on his back-of-the-envelope math, the $7.3 billion that Ray’s team had come up with didn’t include Serum, some large clawbacks and other venture investments that had appreciated in value.
For FTX customers, being made whole, according to a judge’s ruling, means getting the cash equivalent of what their crypto was worth in November 2022. In other words, they’re not seeing any of the upside of FTX’s investments or being given virtual coins that would allow them to cash out at higher valuations.
Still, some investors have found a way to participate in the FTX’s ongoing odyssey. The market for FTX IOUs lit up last year as it became clear that the bankruptcy estate was cobbling together a lucrative portfolio. One financial firm that had lost around $100 million initially sold its FTX debt for 6 cents on the dollar in a new secondary market out of concern that he may never get a better deal. As of December, those claims were going for more than 70 cents on the dollar.
If customers are eventually made whole, that could play a big role in Bankman-Fried’s appeal, likely following his sentencing, which is set to take place in Brooklyn on March 28. Perry said it could also affect how the judge handles sentencing in the first place.
“Under the federal sentencing guidelines, and even assuming no monetary loss, SBF still faces at least 70 months in prison based on his base level offense, number of victims, sophisticated means, and leadership role,” Perry said.
The massive losses that were originally expected would suggest 30 to years to life, Perry added.
Renato Mariotti, a former prosecutor in the U.S. Justice Department’s Securities and Commodities Fraud Section, told CNBC that judges typically consider the amount of restitution paid to victims at sentencing.
“If the victim is made whole, that is a big plus for the defendant,” said Mariotti. He noted, however, that the extent of the fraud coupled with Bankman-Fried’s false testimony and violation of bond conditions could limit the reduction.
“I usually advise clients to pay restitution before sentencing if at all possible,” Mariotti said.
WATCH: Former SEC Chari discusses Bankman-Fried guilty verdict
Environment
Prime Day-1 Green Deals: Lectric’s new XP Trike2, EcoFlow, Segway e-bikes, ECOVACS robot mowers, Anker SOLIX, and much more
Amazon’s Prime Day is in full swing through the rest of the week, and we’ve got a jam-packed edition of Green Deals for you today from the first round of savings that we’ve spotted so far, with all the rest being added to our Prime Day Green Deals hub here, which we’ll be updating regularly. Leading the pack is the preorder launch of Lectric’s new XP Trike2 that is getting $227 in free gear at $1,499 through July 28th. We also have some EcoFlow direct-website Prime Day savings, like the DELTA Pro 3 bundle with a 400W panel and a transfer switch at a new $2,849 low, among others. There’s also the new low price hitting Segway’s Xafari e-bike for $2,000, while the Xyber e-bike is down at $3,000. All that and much more are waiting for you below.
Head below for other New Green Deals we’ve found today and, of course, Electrek’s best EV buying and leasing deals. Also, check out the new Electrek Tesla Shop for the best deals on Tesla accessories.
Lectric launches new and improved XP Trike2 with $227 in free gear for preorder at $1,499
As part of Lectric’s newly launched Better Than Prime Sale, the brand is offering preorder savings on its all-new XP Trike2 that comes with $227 in free gear at $1,499 shipped, while the upgraded 750 model won’t be available for preorder until September. This bundle would normally cost $1,726 in full, but as most folks know, the brand tends to provide discounts on the bundled items over actual price cuts. This all-new commuting solution is getting the first chance at savings through July 28th, when it is slated to begin shipping. Along with the eTrike, you’ll be getting a wider saddle with a supporting backrest, an Elite headlight, and a suspension seat post. Head below to learn more about this model and its upcoming 750 variant too.
The next generation of one of the most popular eTrikes on the market, especially amongst older riders, Lectric’s new XP Trike2 cruises onto the scene with a Stealth M24 500W rear hub motor (peaking at 1,092W) that runs quieter than normal motors, as well as a 624Wh battery. This combination provides top speeds of 14 MPH and a travel range of up to 50 miles on a single charge when the five PAS levels are activated. If you haven’t ridden in a while and want to take things slow, there is a power-limiting preset feature that dials down its max speed until you’re ready.
There’s a bunch of notable upgrades coming with the Lectric XP Trike2, like the Cloud 50 suspension fork to take pressure off your joints, as well as hydraulic brakes for guaranteed stopping power, a headlight and taillight that provides amber side lighting, turn signals, brake lighting, plus reflective tires – all in the name of keeping you seen and safe. You’ll also be getting puncture-resistant tires with fenders over each, a 20A internal controller with an IPX5 water-resistance rating, parking brakes, a rear cargo rack with a 75-pound payload, a half-twist throttle, a new TFT LCD display, keyless riding functionality, and more.
Now, if you want to hold off for the upgraded Lectric XP Trike2 750 model, there are a few key differences to consider. First, it will be available at $1,799 shipped come September, with a larger 840Wh battery and Stealth M24 750W rear hub motor (peaking at 1,310W) that provide increased 17 MPH top speeds and a travel range up to 70 miles with the pedal assistance activated. From there, the big changeup comes from the inclusion of the brand’s Quick Switch tech that allows you to switch between cadence and torque sensors.
Get $2,448 in savings on EcoFlow’s DELTA Pro 3 bundle with a 400W panel and transfer switch at new $2,849 low
EcoFlow has switched to its full Prime Day Sale event running through July 11 with up to 62% discounts (and a bonus 5% savings) across a massive lineup of units. Three offers can be found only on the brand’s direct site, with the biggest deal amongst them being the DELTA Pro 3 Portable Power Station bundled with a 400W solar panel and transfer switch for $2,849.05 shipped, after using the code EFPDAFF5 at checkout for an additional 5% off. This package would normally run you $5,297 at full price, which we’ve only seen brought as low as $3,499 back in its Memorial Day sale. The deal here gives you more savings than ever, putting $2,448 back in your pocket for the best new price we have tracked.
Check out the full post and all the included bundles in our original coverage here.
Segway’s Xafari and Xyber e-bikes with Apple Find My, proximity locking, more are starting from a new $2,000 low
Running parallel to Amazon’s Prime Day Sale event, Segway has some limited-time discounts of up to $400 on its two new e-bikes. Through July 11, you can score the Xafari e-bike at $1,999.99 shipped, while the Xyber e-bike is down at $2,999.99 shipped. Normally fetching $2,400 and $3,300, respectively, we’ve only seen previous post-launch discounts hitting these models once before at the top of June, when their prices were brought down to $2,200 and $3,000. While the low price is returning for the Xyber e-bike, the Xafari is seeing even lower pricing for this event that saves you $400 off the tag at the new best rate we have tracked.
Get the full rundown on what you can expect from these models in our original coverage here.
Save $600 on ECOVACS’ AI-supported Goat A2500 robot mower at new $1,100 low for Prime Day
As part of its Prime Day event, Amazon is offering the price yet on the new ECOVACS Goat A2500 RTK Robot Lawn Mower dropping to $1,199.99 shipped during this event. This new model has spent most of the time since its release earlier in the year keeping to its $2,000 full price, which we’ve seen brought down as low as $1,500 with discounts so far. During this seasonal event, we’re seeing things go even lower thanks to the 30% markdown that is cutting $600 off the tag, landing it at the best price we have tracked.
Get the full rundown on what you can expect from this new model in our original coverage here.
Anker’s new modular SOLIX F3000 3,072Wh LiFePO4 station gets up to $2,599 increased savings from a new $1,599 low
Anker SOLIX has officially launched its full Prime Day Sale with up to 57% discounts, bonus savings, free gifts, and more through July 11. Among the deals we’re seeing, the brand’s new SOLIX F3000 Portable Power Station is getting increased savings up to 2,599 off, with things starting at the solo power station for $1,519.05 shipped, after using the code PDSG5OFF at checkout. which is also matching in price at Amazon. Outside of these initial savings, this new unit will carry a $2,599 price tag, which is reduced from the $900 $1,080 markdown that lands it at a new low price. What’s more, the brand is also offering reduced add-on accessory discounts (on the station’s landing page), giving folks the chance to pick up the home backup kit for just $99 (normally $399) and/or the 120V generator input adapter at $49 (normally $99) – adding on an additional $350 savings should you take the opportunity.
Get the full rundown on what you can expect from this new model, as well as the pricing on its bundles in our original coverage here.
Get $2,200+ savings on Greenworks’ 60V Crossover-Z riding mower with six 8Ah batteries at a new $2,797 low
As part of its Prime Day Competitor Sale, Walmart is offering the best pricing yet on the Greenworks 60V Crossover-Z 42-inch Cordless Zero Turn Riding Lawn Mower with six 8Ah batteries and three dual port turbo chargers at $2,797 shipped. Normally, this package would run you $5,600 direct from the brand’s website, where it’s currently marked down to $5,319, but fetches $4,997 at Walmart. The already significant difference in price only gets better with the $2,200 markdown we’re seeing during this sale that beats out all the pricing we’ve seen up until today to land it at a new all-time low. You won’t find this package at Amazon, where only the bundle with four 8Ah batteries is offered – plus, that’s sitting nearly $1,000 higher in price, so you’re getting a lot more here for a lot less.
Learn more about this riding mower in our original coverage here.
Get $100 in first savings on Aiper’s IrriSense smart irrigation system that covers 4,800 square feet at $600
Through its official Amazon storefront, Aiper is offering the first chance at savings on its new IrriSense Smart Irrigation System at $599.99 shipped, after clipping the on-page $100 off coupon, with the price matching direct from the brand’s website. This new device just hit the scene back in May with a $700 price tag, with the deal we’re seeing here from both Amazon and the brand’s direct site being the first chance at cash savings that we have tracked. You’ll be able to upgrade your irrigation with a smarter alternative at $100 off while it lasts, setting the bar for future deals down the line.
Learn more about this all-new release and what it can do in our original coverage here.
Best Summer EV deals!
- Ford Bronco e-bike (use code PDSG5OFF): $4,000 (Reg. $4,500)
- Ford Mustang e-bike (use code PDSG5OFF): $3,500 (Reg. $4,000)
- Aventon Ramblas Electric Mountain Bike: $2,599 (Reg. $2,899)
- Heybike Hero Carbon Fiber All-Terrain 750W mid-drive e-bike: $2,599 (Reg. $3,099)
- Ride1Up Prodigy v2 Brose Mid-Drive Gates Belt CVT e-bike: $2,595 (Reg. $2,795)
- Velotric Nomad 2X Multi-Terrain Camo e-bike with $50 bundle: $2,499 (No price cut)
- Ride1Up Revv 1 DRT Off-Road Moped-Style e-bike: $2,495 (Reg. $2,595)
- Ride1Up Revv 1 Full Suspension Moped-Style e-bike: $2,395 (Reg. $2,595)
- Heybike Hero Carbon Fiber All-Terrain 1,000W rear-hub e-bike: $2,299 (Reg. $2,599)
- Ride1Up Prodigy v2 Brose Mid-Drive 9-Speed e-bike: $2,095 (Reg. $2,495)
- Velotric Nomad 2 All-Terrain e-bike with $120 bundle (new model): $1,999 (No price cut)
- Rad Power Radster Road Commuter e-bike: $1,999 (Reg. $2,199)
- Rad Power Radster Trail Off-Road e-bike: $1,999 (Reg. $2,199)
- Lectric XPedition 2.0 35Ah Cargo e-bike w/ up to $703 bundle: $1,999 (Reg. $2,702)
- Tenways AGO X All-Terrain e-bike with $307 bundle: $1,899 (Reg. $2,499)
- Velotric Breeze 1 Cruiser e-bike with $150 bundle (new model): $1,799 (No price cut)
- Aventon Pace 4 Smart Cruiser e-bike (new model, first discount): $1,699 (Reg. $1,799)
- Lectric XPedition 2.0 26Ah Cargo e-bike w/ $554 bundle: $1,699 (Reg. $2,253)
- Lectric XPeak 2.0 Long-Range Off-Road e-bike with $316 bundle: $1,699 (Reg. $1,915)
- Aventon Abound Cargo e-bike: $1,599 (Reg. $1,999)
- Aventon Aventure 2 All-Terrain e-bike (2025 low): $1,599 (Reg. $1,999)
- Lectric XPeak 2.0 Standard Off-Road e-bike with $227 bundle: $1,499 (Reg. $1,726)
- Lectric XP Trike2 with $227 preorder bundle (through July 28): $1,499 (Reg. $1,726)
- Tenways CGO600 Pro e-bikes with $118 bundle: $1,499 (Reg. $1,899)
- Velotric Nomad 1 Plus All-Terrain e-bike with $69 bundle : $1,399 (Reg. $1,899)
- Fold 1 Plus e-bike with $120 bundle (new model): $1,499 (No price cut)
- Lectric XP Trike with $405 bundle: $1,499 (Reg. $1,904)
- Lectric XPedition 2.0 13Ah Cargo e-bike with $326 bundle: $1,399 (Reg. $1,725)
- Aventon Level 2 Commuter e-bike (2025 low): $1,399 (Reg. $1,899)
- Ride1Up Roadster V3 Lightweight Premium e-bike: $1,395 (Reg. $1,495)
- Velotric T1 ST Plus e-bike with $82 bundle (2025 low): $1,299 (Reg. $1,649)
- Lectric XPress 750 Commuter e-bikes with $336 bundle: $1,299 (Reg. $1,635)
- Lectric XP4 750 LR Folding Utility e-bikes with $356 bundle: $1,299 (Reg. $1,655)
- Heybike Brawn Off-Road e-bike: $1,299 (Reg. $1,799)
- Velotric Discover 1 Plus Commuter e-bike with $83 bundle (2025 low): $1,199 (Reg. $1,699)
- Lectric XP Lite 2.0 JW Black LR e-bike with $414 bundle: $1,099 (Reg. $1,513)
- Ride1Up Portola Folding e-bike with BOGO accessory promo: $995 (Reg. $1,095)
- Lectric XP4 Standard Folding Utility e-bikes with $79 bundle: $999 (Reg. $1,078)
- Lectric XP 3.0 Long-Range e-bikes (clearance price cut): $999 (Reg. $1,199)
- Lectric XP Lite 2.0 Long-Range e-bikes with up to $414 bundles: $999 (Reg. $1,413)
- Heybike Hauler Single-Battery Cargo e-bike: $999 (Reg. $1,499)
- Rad Power RadExpand 5 Folding e-bike (new low): $999 (Reg. $1,599)
- Navee ST3 Pro Electric Scooter (new model): $760 (Reg. $1,014)
- Fold 1 Lite e-bike (new all-time low): $599 (Reg. $1,099)
- Navee GT3 Pro Electric Scooter (new model): $520 (Reg. $714)
Best new Green Deals landing this week
The savings this week are also continuing to a collection of other markdowns. To the same tune as the offers above, these all help you take a more energy-conscious approach to your routine. Winter means you can lock in even better off-season price cuts on electric tools for the lawn while saving on EVs and tons of other gear.
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Ford has a new idea to help you save this summer: $0 down payment, 0% interest, and zero payments for the first 90 days. The new summer sales promo is available on most Ford and Lincoln models. Those buying an electric vehicle can also score a free home EV charger.
In April, Ford launched the “From America, For America” campaign, offering employee pricing to all. According to Ford, the offer helped make it the number one selling brand in America in the first half of 2025.
Despite the success, Ford is shaking it up for the second half of the year. Starting July 8, Ford is transitioning to its new “Zero, Zero, Zero” offer.
The summer sales promo features a $0 down payment, 0% interest for 48 months, and zero payments for the first 90 days on most Ford and Lincoln vehicles.
Although the employee pricing plan turned out to be a success, Ford dealers said buyers could benefit from less out-of-pocket expenses.
Those shopping for an EV can also score a free home charge. Ford extended its Power Promise program through September 30.
The program offers buyers a free Level 2 home charger (plus standard installation) and other perks like 24/7 live electric vehicle support, roadside assistance, and an 8-year, 100,000-mile battery warranty.
Despite strong overall sales in the second quarter, Ford’s EV sales fell by nearly a third. Ford spokesperson Martin Gunsberg told Electrek the lower EV sales were due to the Mustang Mach-E recall and changeover to the 2025 model year. “Our dealers can’t sell what they don’t have,” he said.
Although the Trump administration is ending the federal EV tax credit, you still have until September 30 to snag the savings on eligible models.
Ready to test one out for yourself? You can use our links below to find deals on the Mustang Mach-E and F-150 Lightning at a dealer near you.
FTC: We use income earning auto affiliate links. More.
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