Before November, Sam Bankman-Fried and FTX were little known to the general public. That changed in November when CoinDesk published a damning report about Sam Bankman-Fried’s crypto trading firm Alameda Research. The CoinDesk report showed what appeared to be a Ponzi scheme in the fast lane. Alameda Research had banked on FTX’s native FTT token as the majority of its balance sheet. In short, it was using its own “tokens” as collateral against itself.

Following the CoinDesk release in early November, the quantitative cryptocurrency trading firm Binance announced that it would shed its FTT holdings. That move, coupled with the apparent artificial manipulation of its tokens, caused panic among investors and a run to disinvest. We know now that investor “money” wasn’t there or was disappearing like smoke in the wind. Not surprisingly, FXT couldn’t meet withdrawal demands. FXT went from $50 to $1 in value. Bankman-Fried went from a billionaire to claiming he had $100,000 left.

Bankman-Fried was the golden boy for many crypto faithful. A financial “genius”. He was also a favorite and golden goose for Democrats. He was right behind George Soros in funding Democratic politicians. But the dominos fell in early November. By the latter half of November, FTX was a ghost. So was Bankman-Fried. He was in the Bahamas complaining.

He tweeted back at Maxine Waters vowing to “testify.”

Rep. Waters, and the House Committee on Financial Services:

Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.

I'm not sure that will happen by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt

— SBF (@SBF_FTX) December 4, 2022

On November 13, he was tweeting nonsensical puffery, vowing to “fix” everything. By the end of November, FTX had collapsed on itself like a dying star.

Then, bankruptcy.

“We have witnessed one of the most abrupt and difficult collapses in the history of corporate America,” said James Bromley, an attorney representing the company.”

Bankman-Fried was arrested in the Bahamas and famously complained about his accommodations. Where was Caroline Ellison, the CEO of Alameda Research and Bankman-Fried’s former girlfriend? And where was Gary Wang the co-founder of FTX?

Weeks ago Ellison was spotted in New York, reportedly meeting with lawyers. Since that “sighting,” she had gone missing. Also missed was Gary Wang the co-founder of FTX.

Three days ago, the International Business Times speculated that Ellison was moving quickly to save herself from decades in federal prison by cutting a deal with prosecutors.

It’s apparent now that both Ellison and Wang have done just that. Both pled guilty to fraud on Wednesday.

The pair of former executives and confidants of Bankman-Fried have pled to a single count of fraud in a Southern District courtroom. There is little doubt that both Wang (29) and Ellison (28) could see the writing on the wall, and there is also little doubt that their attorneys advised them that cooperation and a plea would be the only way out of spending their 30s in federal prison. The details of the plea have not been released, but sentencing will likely be contingent on the level of cooperation and an agreement to testify against Bankman-Fried.

US Attorney Damien Williams said:

‘If you were participating in misconduct, now is the time to get ahead of it,’ Williams said, warning other prospective fraudsters to come forward or face more intense charges later.

There are likely more “little fish” to catch, but Bankman-Fried isn’t likely to get a plea deal. He’s more likely to spend most of the next two decades in federal prison.