FTX

About FTX

FTX, once the third largest cryptocurrency exchange, filed for bankruptcy on November 11, 2022. Founder Sam Bankman-Fried had built FTX into a 32 billion company in three years. FTX customer funds were transferred to Alameda Research, Bankman-Frieds trading firm, which used them for risky investments and political donations. The collapse began when CoinDesk reported on the close relationship between FTX and Alameda. Rival exchange Binance announced it was selling its FTT tokens, triggering a bank run. Approximately 8 billion in customer funds were missing. Bankman-Fried was arrested in the Bahamas and extradited to the US. He was convicted on seven counts of fraud and conspiracy in November 2023 and sentenced to 25 years. The bankruptcy estate recovered approximately 14 billion for creditors.