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

Sources

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