As Sam Bankman-Fried, labeled the "King of Crypto", prepares to stand trial for multiple fraud charges, one British man shares how the closure of his company deprived him of a fortune.
Sunil Kavuri held out hope until the very end that Sam Bankman-Fried would be able to reverse the situation.
Despite the crumbling of the King of Crypto's kingdom, Kavuri was unphased, not succumbing to the fear of those around him.
His time trading for banks and investing in crypto gave him a thick skin when it comes to market fluctuations.
Bankman-Fried, who had appointed himself as the savior of crypto, continually asserted that all would be well.
However, a message displayed on the screen said that withdrawals were not allowed.
FTX, which was once the globe's second-biggest cryptocurrency trading platform, filed for insolvency in November of 2020.
For Kavuri, years of wise trading, fraught with stress and success, had been for nothing.
The entirety of his $2.1 million had disappeared.
I was on the computer incessantly for an entire day, refreshing the page and attempting to contact the FTX support desk to retrieve my money. I felt overwhelmed with dread. I thought to myself, 'Oh no, I've lost it all.'
Kavuri, a resident of Derbyshire, had planned to use his savings to buy a new home and pay for his son's college tuition. However, nearly a year later, he has nothing to show for his efforts except for the paperwork documenting what was his.
It is widely believed that he is the Briton that suffered the most damage as a result of the FTX collapse.
FTX was presented as a secure way for anyone to take part in cryptocurrencies.
Panorama: The Decline of the Crypto King
BBC's Panorama program investigates the downfall of the crypto king.
Panorama investigates the extraordinary ascension and monumental collapse of Sam Bankman-Fried, the mathematics whiz who aimed to revolutionize the crypto industry but ultimately became its most noteworthy failure.
Tune in to BBC1 at 8 p.m. on Monday, September 25th or watch on BBC iPlayer (available only in the UK).
The exchange operated without regulations, enabling people to swap currency for cryptocurrencies, for example Bitcoin, and keeping their money safe.
The collapse of the company drew in nine million customers from 100 countries; however, when it happened, more than a million of these users were unable to retrieve their funds, leaving them unable to recover their investments. Court records prove that businesses, investors and charities had suffered losses after the company's demise.
Starting next week, the United States justice system will be hosting a widely publicized trial in which Sam Bankman-Fried is accused of seven counts of fraud, conspiracy and money-laundering. Bankman-Fried said previously, "I have not taken money illicitly or stored away vast amounts of money."
The 31-year-old founder of FTX and Alameda Research, a crypto hedge fund, has pled not guilty and is preparing to make an appearance in a New York court to contest the accusations against him.
Other executives from his organizations have already admitted guilt and are anticipated to provide information concerning how their realm - which was once valued at $40bn - declined.
It is alleged that Bankman-Fried deceived customers by utilizing their money to back his own high-risk investments in his hedge fund. He spent a considerable amount of cash on luxurious properties and donations to politics.
The exposure of the investigation into FTX resulted in Bankman-Fried's downfall. Coindesk revealed that Alameda Research received billions of dollars in investments, yet the funds were being supported by a highly unstable cryptocurrency that had been created by FTX. This large risk was ultimately what caused Bankman-Fried's demise.
Customers of FTX rushed to withdraw billions of dollars before the platform closed and declared bankruptcy.
Prior to his apprehension in The Bahamas, Bankman-Fried granted multiple interviews, including to the BBC, where he expressed regret for errant economic decisions he had made. Nevertheless, he maintained that these missteps had not been conscious or unlawful.
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Investors will be vigilantly keeping track of his court proceedings accompanied by staying watchful for news on the potential return of any of their funds.
Kavuri claims that Sam Bankman-Fried has had a profoundly damaging effect on numerous people's lives.
He has interacted with creditors from different parts of the globe and acted as a representative for their interests. He has taken to branding himself the "FTX Creditor Champion" on social networks. In addition, he has created Telegram factions that serve as discussion forums where members can relate their struggles.
He states that one person in Turkey only had $600 (£490) in their bank account after going through a significant loss and in Korea, someone had to be hospitalized due to panic attacks.
Sunil, like numerous other FTX traders, holds those who propelled Bankman-Fried to prominence accountable. Celebrities and influencers who vouched for the firm and its leader as secure and reliable are included in this group. In 2022, when the company was at its apogee, it ran an advertisement during the Super Bowl in the US featuring the comedian Larry David. The catchphrase was “Don't Miss Out” and was intended to encourage people to invest.
Sunil has commenced two of the various presently ongoing civil cases - including one against crypto influencers and famous people. Larry David, American football player Tom Brady and supermodel Gisele Bündchen are trying to get the lawsuit dismissed by the court. They did not provide an answer to Panorama's inquiries for a statement.
It is presumed that it will take years for legal experts to try to acquire funds from every potential source as they untangle FTX's finances.
Last week, Bankman-Fried's parents were taken to court over money and luxury property in The Bahamas which had been gifted to them by their son.
Kavuri affirms that his reliance on FTX was strengthened when major venture capital firms provided significant financing to the cryptocurrency exchange. Notoriously, Sequoia Capital devoted $213m (£174m) to the enterprise, which they have now written off as a deficit.
He recounts that upon viewing the large volume of endorsements for FTX, he had a feeling that it must be a trustworthy exchange.
On Thursday, Sunil and his wife had the pleasure of introducing to the world their second child, which further fueled his resolve to recover some of the money he had previously lost.
At present, his only options are to observe, anticipate and desire.
BBC Panorama sought comments from Sam Bankman-Fried's attorneys for this article, but they stated that he cannot make any statements while current legal proceedings are in progress.
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