FTX Collapse event
Overview
The downfall of Sam Bankman-Fried’s crypto exchange occurred in November 2022. A CoinDesk article had disclosed that Alameda Research, a trading firm linked to the exchange, had its balance sheet heavily weighted with FTX’s proprietary FTT token. This prompted a rush of withdrawals. On 11 November 2022, FTX sought Chapter 11 bankruptcy protection. Authorities stated that over $8 billion in client assets had vanished. Bankman-Fried was found guilty of fraud and, in March 2024, received a 25-year prison term, along with an order to forfeit $11 billion.
Within The Counterparty graph, FTX Collapse connects to 1 tracked entity, most strongly to Serum.
Relations
Top connections in The Counterparty knowledge graph (confidence-weighted, 1 of 1 total).
| Relation | Connected entity | Confidence |
|---|---|---|
replaced_by | Serum | 85% |
Sources
Facts in this record were checked against the following. Where a claim is not covered here, the record states only what the graph holds.
Questions on the record
What triggered the FTX collapse?
A CoinDesk article published November 2, 2022 disclosed that Alameda Research's balance sheet relied heavily on FTX's FTT token. This revelation caused a loss of confidence and triggered a customer run on the exchange.
Who ran FTX after the bankruptcy filing?
Sam Bankman-Fried resigned. John J. Ray III, a restructuring specialist, became chief executive to manage the bankruptcy.