Cryptocurrency exchange FTX, once valued at 32 billion dollars, collapsed within days in November 2022 after reporting revealed its founder Sam Bankman-Fried had secretly funneled billions of dollars in customer funds to his affiliated trading firm Alameda Research, triggering a bank run and the exchange's bankruptcy filing. Bankman-Fried was convicted of fraud and conspiracy in 2023 and sentenced to 25 years in prison, and the collapse became one of the largest financial frauds in U.S. history and a major setback for the cryptocurrency industry's credibility. This description is adapted from Wikipedia contributors under CC BY-SA 4.0; changes were made. https://creativecommons.org/licenses/by-sa/4.0/
Facts
Event TypeCryptocurrency collapse 1 Connections
Associated With
FTX's collapse in November 2022, following revelations that customer funds had been misused, became one of the largest financial frauds in cryptocurrency history and led to its founder's criminal conviction.
Source Wikipedia, Bankruptcy of FTX
Companies Involved
Source Wikipedia, Bankruptcy of FTX
Sources
1. Wikipedia, Bankruptcy of FTX
WikipediaLead section, opening paragraph
The collapse of FTX, caused by a spike in customer withdrawals that exposed an $8 billion hole in FTX's accounts, served as the impetus for its bankruptcy.
- Associated With: Finance
Companies Involved: FTX, Bankruptcy filing and CEO resignation paragraph
On 11 November, FTX, Alameda Research, and over 100 affiliated entities filed for bankruptcy. Bankman-Fried resigned as FTX CEO and was replaced by John J. Ray III.
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