FTX Collapse
About FTX Collapse
FTX, once the second largest cryptocurrency exchange, collapsed in November 2022. Founder Sam Bankman-Fried had secretly transferred 10 billion in customer funds to his trading firm Alameda Research. When a report exposed the arrangement, customers rushed to withdraw. FTX froze withdrawals and filed for bankruptcy. Bankman-Fried, once worth 26 billion and a major political donor, was arrested in the Bahamas. He was convicted of fraud and money laundering in 2023 and sentenced to 25 years. The collapse destroyed confidence in cryptocurrency and led to increased regulatory scrutiny worldwide.
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