WhereIsAtlas · Cryptocurrency

FTX

The crypto exchange that was worth $32 billion — and collapsed in days amid one of history's biggest frauds

Defunct — FTX was a major cryptocurrency exchange founded in 2019 by Sam Bankman-Fried, reaching a valuation of about $32 billion. In November 2022 it collapsed within days amid a massive fraud, and Bankman-Fried was convicted on multiple counts of fraud. The exchange now operates as a shell recovering customer funds.

FTX was founded in 2019 by Sam Bankman-Fried and quickly became one of the world's largest cryptocurrency exchanges. It was seen as a sophisticated, well-capitalized trading platform, and its founder became a celebrity of the crypto boom, even appearing before regulators and the public as a trusted voice.

At its peak, FTX was valued at about $32 billion. But in November 2022 the company collapsed spectacularly. Lingering doubts about its financial health triggered a panic, and within days FTX filed for bankruptcy. An investigation revealed that customer funds had been misused to prop up the founder's trading firm, Alameda Research, in a massive fraud.

Sam Bankman-Fried was arrested and later convicted on multiple counts of fraud and conspiracy. He was sentenced to prison. FTX now exists largely as an entity recovering customer funds and settling claims, a cautionary tale of the crypto boom's excesses.

Quick facts

Founded
2019
Founder
Sam Bankman-Fried
Peak valuation
~$32 billion
The collapse
November 2022 (bankruptcy in days)
The fraud
Customer funds misused via Alameda Research
Outcome
Bankman-Fried convicted of fraud
Today
Shell recovering customer funds

Lineage — where the name went

One exchange, the trading firm that was its sister company, the acquisitions that hung off both, and the bankruptcy that ended them.

  1. 2019 — Sam Bankman-Fried founded FTX Trading Ltd. (opened in May 2019, with Gary Wang as co-founder)
  2. 2019 — Gary Wang founded FTX Trading Ltd. (co-founder and chief technology officer)
  3. 2017 — Sam Bankman-Fried founded Alameda Research (co-founder, with Tara MacAulay)
  4. FTX Trading Ltd. sibling-of Alameda Research (sister companies under one founder, and Alameda was FTX's main market maker)
  5. Caroline Ellison served under Alameda Research (chief executive from October 2021, sole chief executive after August 2022)
  6. 2019 — FTX Trading Ltd. acquired by Binance (a 20 per cent stake for about $100 million; Bankman-Fried bought it back in 2021 for about $2 billion)
  7. 2022 — FTX Trading Ltd. acquired by Binance (a non-binding letter of intent signed on 8 November 2022 and abandoned the next day)
  8. 2020 — FTX Trading Ltd. acquired Blockfolio (the portfolio-tracking app, for about $150 million)
  9. 2021 — FTX Trading Ltd. acquired LedgerX (announced on 31 August 2021 by FTX US)
  10. 2022 — FTX Trading Ltd. acquired Liquid Group (the Japanese exchange, bought in February 2022)
  11. 2022 — FTX Trading Ltd. acquired Bitvo (a deal agreed in June 2022 to buy the Canadian platform)
  12. 2022 — FTX Trading Ltd. acquired BlockFi (an option to buy the lender for up to $240 million, with a $400 million credit line)
  13. 2022 — FTX Trading Ltd. acquired Voyager Digital (FTX US won the auction for the lender's assets, about $1.42 billion)
  14. 2023 — M7 Holdings acquired LedgerX (approved by the Delaware bankruptcy court on 4 May 2023 for $50 million)
  15. 2022 — FTX Trading Ltd. created The Chapter 11 filing (filed on 11 November 2022 in the District of Delaware)
  16. 2022 — FTX Trading Ltd. appointed John J. Ray III (named chief executive when the company filed)
  17. 2023 — Sam Bankman-Fried created The conviction (found guilty on all seven counts on 2 November 2023)
  18. 2024 — The conviction created The sentence (25 years in prison and an $11 billion forfeiture)

Entities in this tree: FTX Trading Ltd. (company, 2019); Sam Bankman-Fried (person); Gary Wang (person); Alameda Research (company); Caroline Ellison (person); Binance (company); Blockfolio (company); LedgerX (company); Liquid Group (company); Bitvo (company); BlockFi (company); Voyager Digital (company); M7 Holdings (company); John J. Ray III (person); The Chapter 11 filing (event, 2022); The conviction (event, 2023); The sentence (event, 2024)

Sources

  1. FTX - Wikipedia — Wikipedia (2026-09-05)
  2. FTX bankruptcy and collapse - reporting — https://en.wikipedia.org/wiki/FTX
  3. Behind FTX's fall, battling billionaires and a failed bid to save crypto — Reuters, via the Internet Archive (2026-09-20)
  4. Bankruptcy of FTX — Wikipedia (2026-09-20)
  5. Alameda Research — Wikipedia (2026-09-20)
  6. Sam Bankman-Fried — Wikipedia (2026-09-20)
  7. Trial of Sam Bankman-Fried — Wikipedia (2026-09-20)
  8. BlockFi — Wikipedia (2026-09-20)
  9. FTX US acquires LedgerX, a cryptocurrency derivatives exchange — ForkLog (2026-09-20)
  10. Court approves LedgerX sale for 50 million dollars — ForkLog (2026-09-20)
  11. FTX agrees to acquire Canadian trading platform Bitvo — CoinDesk, via the Internet Archive (2026-09-20)
  12. FTX buys crypto exchange Liquid Group for expansion in Japan — CoinDesk, via the Internet Archive (2026-09-20)

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