CryptosBeginner
Timeline graphic including the 2022 FTX collapse

Dead, abandoned and obsolete · Insolvency

FTX and FTT

FTX filed for bankruptcy in November 2022. US prosecutors later convicted founder Samuel Bankman-Fried of fraud offences connected to the misuse of customer funds.

InsolvencyConfirmed enforcement actionConfidence: high

What happened

Reports about Alameda Research and FTT collateral triggered a run. The often-cited customer shortfall was about $8 billion.

What failed

Customer funds were not safely segregated in the way many users had been led to expect.

Current status

The original FTX exchange is not an operating retail venue in its pre-collapse form.

What users should do

  • Use only official FTX bankruptcy or claims channels.

Lessons

  • Withdrawal delays are a reason to stop depositing.

Primary sources