FTX filed bankruptcy November 11, 2022 with $8 billion missing. Sam Bankman-Fried convicted of fraud and sentenced to 25 years in prison.
| Product Type | Crypto Exchange + Visa Debit Card |
| Token | FTT Token |
| Peak Valuation | $32 Billion |
| Missing Funds | $8 Billion+ |
| Collapse Date | November 11, 2022 |
FTX was the third-largest cryptocurrency exchange in the world, led by Sam Bankman-Fried (SBF) who was celebrated as a crypto wunderkind. The exchange offered an FTX Card — a Visa debit card for spending crypto.
In early November 2022, a leaked balance sheet revealed that FTX's sister company Alameda Research was heavily dependent on the FTT token. This triggered a bank run.
Within days, FTX revealed an $8 billion hole in customer accounts. Funds had been secretly transferred to Alameda. On November 11, 2022, FTX filed bankruptcy.
Sam Bankman-Fried was arrested, tried, and convicted on multiple counts of fraud. He was sentenced to 25 years in federal prison.