The announcement of FTX's bankruptcy remains fresh in our memories, even though it's been over 10 months. In a controversial tour asserting his innocence, Sam Bankman-Fried (SBF) was arrested and extradited to the United States. While awaiting his October trial, he was mandated to reside in his parents' home.

However, this house arrest came to an end last Friday. A judge made this decision after finding out that SBF was trying to influence potential witnesses against him. As a result, SBF has been relocated to the Metropolitan Detention Center in New York—a facility the judge sarcastically remarked isn't on "anyone's list of five-star hotels." The decision to move SBF has garnered substantial support on Twitter. It remains uncertain if the $250 million bail posted for SBF will be forfeited due to this violation.

(Court sketch from the hearing on August 11th - source)

Come October, when SBF stands in the dock, he might find himself facing Ryan Salame, former CEO of FTX Digital Markets. Salame is currently in talks with the prosecution regarding a possible settlement. The charges against him allege that he misappropriated customer funds for donations to Republican politicians and officials. Since such campaign rule violations are also part of SBF's trial, Salame might emerge as a crucial witness.

Additionally, entities associated with FTX's growth are also getting entangled in legal battles. Five FTX customers have filed lawsuits against 18 venture capitalists, including prominent names like Temasek, Sequoia Capital, and Softbank. These customers claim that these firms were "complicit in and responsible for" the FTX fraud. A class-action lawsuit has recently been launched against the U.S. law firm Fenwick & West LLP, accusing it of aiding FTX in executing the billion-dollar fraud.