CL
ChainLens
attack·November 11, 2022

FTX Bankruptcy

Second-largest crypto exchange collapses overnight after CoinDesk reveals Alameda-FTX balance sheet irregularities.

Sam Bankman-Fried, once celebrated as crypto's poster child, was revealed to have commingled $8B of customer funds with his hedge fund Alameda Research. The collapse took 9 days from CoinDesk's report to bankruptcy filing. SBF was convicted on 7 counts of fraud in November 2023, sentenced to 25 years. The FTX collapse accelerated regulatory focus globally and ended the era of 'too big to fail' crypto exchanges.